Government & Union UAW may take down FORD Motor Company

Discussion in 'Stock Market' started by KissMy, Jun 26, 2010.

  1. KissMy
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    KissMy Free Breast Exam

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    Thursday on Bloomberg Jim Chanos said that he is shorting shares of automotive company Ford Motors.

    Chanos makes huge money shorting big popular companies when their balance sheet dose not reflect the stock price. He was among the first to discover fraud at Enron, bet against the housing market & banks, Potash & the China housing bubble. His company, Kynikos Associates Ltd. is now taking a bearish stance against Ford & Big Oil.

    Big Oil - "If you look at their cash-flow statements relative to their income statements, you will see companies that haven’t replaced reserves in years, and haven’t seen any increase in revenues in years," he said. "They're borrowing their dividend. They’re in effect liquidating."

    Ford - Chanos added that he believes that Ford Motor Co. will have a hard time competing against General Motors Co. after the government wiped out GM debt & gave the UAW ownership. The United Auto Workers may favor GM and even Chrysler Group LLC over Ford in upcoming labor contract negotiations.

    "It's going to be very interesting to see how it is that the union, which controls the employees -- and I contend these entities are still run for their employees and retirees more than the shareholders -- are going to look in an environment going forward, where the UAW is a major equity holder in some of the other entities," the investor said. "It adds a new dynamic to the twist."

    Chanos is taking a short position on Ford & certain oil companies at this time.
     
    Last edited: Jun 26, 2010
  2. MikeK
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    MikeK Gold Member

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    The best thing that Ford, and all of the monster corporations, can do -- or should be forced to do -- is implement an equitable, government supervised profit sharing policy in place of a unionized work force. Everyone will benefit from that, the workers, the company and the nation. The only ones who won't benefit are the greedy plutocrats who are the cause of the conflict and problems.

    If the employees are sharing in the annual bottom-line production and quality will improve dramatically.
     
  3. 2Parties
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    2Parties Senior Member

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    The problem with that is that if the economy takes a huge hit and Ford is running in the red are they going to start cutting the base wage for union workers? That's something the union would never agree to and because of that Ford will never do profit sharing.

    Example:

    Guy makes $30/hour base wage. Ford is doing decent this year. Guy gets $2/hour extra.
    Guy makes $30/hour base wage. Ford is doing absolutely horrendous this year. Guy gets $10/hour removed.

    The union would never participate...
     
  4. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Ford has two strikes going against it's survival:

    1. It's run by the Government.
    2. Automobile manufacturing is slowly shifting to China and India.

    The third strike will be the aforementioned Unions.
     
  5. KissMy
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    GM was backed by the government. Ford did everything right & did not need a bailout. The government took GM's assets from the bond & stock holders & gave gave them to the unions & government. Now this debt free union owned company will put an honest, legal & legitimate company out of business. This is exactly how Fannie & Freddie took down all the small banks. Government AIG & Healthcare bill will wipe out all insurance companies. The oil companies are next. This is how all business in the USA will be taken over by government & unions in a few years.

    The Chicago Mafia has taken over this country. We will have rich & powerful leaders imposing their will on all the rest of the citizens who will be equally poor. The new 1099 rules stuffed in the healthcare bill will wipe out all the mom & pop business.
     
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  6. Polk
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    Polk Classic

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    I wouldn't say Ford did everything right. I would say they did less of a crappy job than their competitors.
     
  7. DavidS
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    DavidS Anti-Tea Party Member

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    That's downright socialism. What a terrible idea! An employee of a company is never supposed to get a share in the profits of a corporation! An employee is hired to do a job for a certain salary per year. That's the agreement between the employer and the employee. The employer has a right to any and all profits, while the employees have a right to an agreed upon salary + benefits. If the employee is unhappy with this, the employee can go start their own fucking company and then they can get all of the profit they want.

    This is one of the most basic, core principles of capitalism. Your idea is downright Marxist at best.
     
  8. DavidS
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    DavidS Anti-Tea Party Member

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    Ford isn't run by the Government, dude. Ford didn't take out a single dime from the gov't when Chrysler and GM did.
     
  9. DavidS
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    DavidS Anti-Tea Party Member

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    Ford HAS done a lot of things right - like producing award winning cars, trucks and SUV's for the past 5 or 6 years. Can you say the same about GM or Chrysler?
     
  10. SFC Ollie
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    SFC Ollie Still Marching

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    I will never own anything but a Ford.

    When i was forced to apply for disability Ford asked no questions but took all my payments and moved them to the end of my loan. Of course they charged interest on the extra time, but no penalties. They called once a month and asked how I was doing. The company actually seemed to give a shit.

    The only other company I had good dealings with was Capitol one. They basically did the same thing.

    I doubt any other Auto Companies would have treated me with that respect and caring. I could be wrong, but I'll stick with Ford.
     

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