|Bid||4.4800 x 21500|
|Ask||4.4900 x 45900|
|Day's Range||4.4100 - 4.6700|
|52 Week Range||3.9600 - 10.5600|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||448.50|
|Earnings Date||Apr. 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jan. 28, 2020|
|1y Target Est||6.59|
The U.S. auto industry took a hit in the first quarter due to COVID-19 that forced people to stay home for the most of March, denting business of one of the nation's largest industries.
(Bloomberg) -- A federal program to issue rebates to consumers toward new vehicles could provide a much-needed jolt to the U.S. auto industry that’s seen plants idled and showrooms emptied by the coronavirus, according to the Obama administration official who oversaw the program known as “cash for clunkers.”Ray LaHood oversaw the program officially named Cars Allowance Rebate System as U.S. Transportation Secretary in 2009. In an interview, he backed a Ford Motor Co. executive’s suggestion that a sequel to the program could be helpful if the industry, lawmakers and the Trump administration agree that auto demand needs a boost once the virus begins to abate.“It was a lifeline to the car dealers whose showrooms were looking pretty bleak without any customers, and I think if you talk to anybody in the automobile industry it was the beginning of the lifeline for the automobile industry from the Obama administration,” LaHood said Thursday. “If they can model something differently to suit the current-day situation, I’m for that.”Carmakers, suppliers and dealers have grown increasingly nervous about their near-term prospects as the virus has ground the industry to a halt and spurred discussion about possible need for government support. New vehicles sold at the slowest pace in a decade in March as government directives closed broad swaths of the economy to thwart the spread of the virus. Nearly every U.S. auto factory has been idled and executives will be hard pressed to restart them until consumers begin to buy cars again.AutoNation Inc, the largest U.S. dealership chain, said Friday that new- and used-car sales plunged 50% in the last two weeks of March and prompted the company to put 7,000 employees on unpaid leave. The retailer slashed executive pay, halving compensation for its chairman and chief executive officer. It also froze hiring and will cut advertising and other capital expenditures.Ford has begun internal deliberations about potential forms of government stimulus, including a clunkers-style program that the industry may need, and those talks are expected to soon involve the federal government, Mark LaNeve, the automaker’s U.S. sales chief, said Thursday.“We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well,” LaNeve said by phone. “We’re in discussions about what would be the most appropriate.”The 2009 program gave consumers a federal rebate of up to $4,500 toward trading in an older, less fuel-efficient car. LaHood said the program not only provided a much-needed boost to the auto industry but put cleaner cars on the road and scrapped gas guzzlers.Consumers quickly exhausted the initial $1 billion in funds allocated by Congress, which provided $2 billion more. That $3 billion triggered more than $13 billion in auto purchases in just a few months, Morgan Stanley analyst Adam Jonas wrote in a March 13 report in which he called such a rebate program a potentially powerful tool to stimulate the sector.So far though, policymakers haven’t openly discussed specific forms of industry aid. Automakers have so far urged lawmakers and the Trump administration to pursue broad means of economic support, stopping short of calling for aid specific to the auto sector.U.S. Representative Debbie Dingell, a Michigan Democrat whose district is home to Ford’s headquarters, said a vehicle scrappage or purchase incentive has been discussed as a possible form of relief for the industry, but consensus hasn’t been reached yet in Washington.“It’s out there as an idea along with many other ideas,” Dingell said. “We’re working with the entire ecosystem of automakers, workers, their unions, suppliers, dealers and consumers.”(Adds biggest U.S. dealership chain announcing unpaid leave for employees in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ford Motor Company today published its 2020 proxy statement and announced the date for the company’s virtual annual meeting.
The company's shares fell more than 2% to $4.25 in the New York stock exchange. "Ford's production restart plans depend heavily on the pandemic situation in the weeks ahead, national restrictions in operation at the time, supplier constraints and the ability of our dealer network to operate," the company said in a statement. The company's U.S. sales chief has said that once the crisis eases, some level of government stimulus will be needed to support car buyers in the face of an unprecedented decline in sales and rising claims for unemployment benefits.
Ford Motor Company (NYSE: F) today reported its first quarter 2020 U.S. sales results. Click here or visit media.ford.com to view the news release.
The auto industry is reeling amid the coronavirus. TPG Global senior advisors and former Ford CEO Mark Fields chats with Yahoo Finance.
Ford and GE Healthcare have licensed a ventilator design from Airon Corp and plan to produce as many as 50,000 of them at a Michigan factory by July as part of a broader effort to provide a critical medical device used to treat people with COVID-19. Ford will initially send a team of engineers to help boost production at Airon's Florida facility, where it produces just three of its Airon Model A ventilators per day. Ford will also begin to ready its own Rawsonville Components Plant in Ypsilanti, Michigan for large-scale production of the Airon Model A-E ventilator that is expected to begin April 20.
Ford Motor Company, in collaboration with GE Healthcare, announced today it will begin producing in Michigan a third-party ventilator with the goal to produce 50,000 of the vitally needed units within 100 days and up to 30,000 a month thereafter as needed.
Ford Motor Co said on Monday it will produce 50,000 ventilators over the next 100 days at a plant in Michigan in cooperation with General Electric's healthcare unit, and can then build 30,000 per month as needed to treat patients afflicted with the coronavirus. Ford said the simplified ventilator design, which is licensed by GE Healthcare from Florida-based Airon Corp and has been cleared by the Food and Drug Administration, can meet the needs of most COVID-19 patients and relies on air pressure without the need for electricity. Officials in states hard hit by the pandemic have pleaded with the Trump administration and manufacturers to speed up production of ventilators to cope with a surge in patients struggling to breathe.
As the rapid spread of the novel coronavirus caused a storage of ventilators around the world, these are the major manufacturers ramping up production to meet demand.
General Motors, Ford and other car makers, along with other manufacturers, are re-directing their resources for COVID-19 relief measures.
(Bloomberg Opinion) -- I’m just going to nip this line of thought in the bud right now: The Federal Reserve should not provide any sort of outright backstop to the U.S. high-yield bond market, no matter how bad things may get for lower-rated companies.I bring this up not because there’s any reason to believe the central bank is on the brink of enacting such a facility but rather because credit-rating companies are updating their projections of just how many speculative-grade companies might fold because of the economic standstill brought about by the coronavirus outbreak. Moody’s Investors Service released a report on Friday that said a sharp but short-lived downturn would increase the global default rate among junk-rated borrowers to 6.8%. A recession on par with the previous one would mean a 16.1% default rate in a year, and something even worse would bring about a whopping 20.8% rate of failure.Even the first scenario would be a shock to high-yield investors who for a decade have become accustomed to defaults in the low single digits and largely confined to an obviously distressed industry such as energy and retail. The wide range of outcomes is one of the reasons that I deemed junk bonds and leveraged loans “losers” among fixed-income assets in a column last week, in contrast to U.S. Treasuries, agency mortgage-backed securities and investment-grade corporate bonds.Of course, one trait shared by the winners is that the Fed has signaled outright support for them. In the case of Treasuries and mortgage securities, it’s typical quantitative easing. But high-grade corporate bonds represent an entirely unprecedented endeavor. It’s so novel, in fact, that Jim Bianco, president and founder of Bianco Research, wrote a Bloomberg Opinion column arguing that the federal government is effectively nationalizing large swaths of the financial markets.On the other hand, buying corporate bonds is old hat for the European Central Bank. While the Fed has set limits that allow its facilities only to add debt maturing in four or five years, the ECB can purchase securities that are due in up to 30 years. That’s an entirely different ballgame as far as projecting default risk. The ECB has no issue with adding negative-yielding debt, either. For those who might have missed it stateside, Siemens AG issued two-year euro bonds in August that priced to yield -0.3%, the most negative-yielding corporate debt sale of all time. It’s rated single-A.“Investors may try to push back on some of the initial deals, but within a few months they will be considered relatively normal structures,” JPMorgan Chase & Co. strategists wrote at the time.The backdrop of finding it normal to effectively pay companies to own their debt is important context for my Bloomberg Opinion colleague Marcus Ashworth’s column last week, titled “Junk Bond Investors Need a Little Love Too.” He rightly points out that the ECB’s measures to support bank lending don’t always reach where they’re needed — like speculative-grade companies that might fold without market access. That, in turn, could lead to widespread job losses and inhibit an economic recovery. The conclusion: “The central bank should think seriously about widening the remit of its corporate sector purchasing program to include junk bonds.” The ECB might very well consider it. Nothing would surprise me at this point. For the Fed, though, it should be an easy decision: hard pass.Credit ratings still need to mean something. I wrote last week about how the impending wave of fallen angels — those companies downgraded to double-B from triple-B — won’t be propped up by the Fed’s new credit-market facilities. Since that column, Ford Motor Co. became the largest such fallen angel of this cycle, with its $35.8 billion of debt headed into the high-yield index this week. I could almost hear the outcry: “Ford was investment grade before the coronavirus outbreak, which was totally out of its control. Why should the company be punished like this?”It likely won’t be the last household name to drop into speculative grade, given how many of them gradually descended into the triple-B tier during the economic expansion. If this shock forces some finance officers to reconsider whether triple-B ratings are optimal, that’s not such a bad outcome.Similarly, reaching for yield needs to have consequences. Investors at one point in December demanded just 38 basis points of extra yield to own double-B bonds instead of those rated triple-B. That spread reached 400 basis points last week. The difference between triple-C and single-B yields climbed to 819 basis points on March 24, from 426 basis points in early February.Those kinds of moves are painful for U.S. high-yield funds, no question. But I’d wager that money managers would rather deal with these repricing episodes than to be in the shoes of their European counterparts, some of whom bought euro junk bonds from French packaging company Crown European Holdings SA at a 0.75% yield in October. That was a record low, as Ashworth pointed out.Simply put, the Fed shouldn’t save every company, nor every investor’s position. In an ideal world, Chair Jerome Powell would most likely have preferred to go no further than the 2008 playbook of purchasing a vast amount of securities that have government guarantees. When that didn’t work, he dipped into short-term commercial paper, as was done before. And when that was insufficient, the central bank launched its new credit facilities. That unfroze the investment-grade market.Whether that thaw makes its way to junk bonds is up to private investors. In hindsight, some securities will seem like bargains. Bank of America Corp. strategists, for their part, see spreads of 1,000 basis points as generally good value, while “at 1,200 bps it would be great value, and at 1,500 bps it would be an extremely rare opportunity.”These types of evaluations are a crucial element of well-functioning capital markets. Unfortunately, when the going gets tough, some investors would rather have central banks provide a cheat sheet than do their own homework on which companies will survive and which will falter. The Fed should resist any temptation to lend a hand. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mark Fields, Former Ford CEO and TPG Global Advisor, joins Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Heidi Chung to discuss how the automotive industry is faring amid the coronavirus outbreak.
Major automaker Ford said Monday (March 30) they're teaming up with General Electric to make 50,000 ventilators over the next 100 days. The companies say after that, they can build 30,000 per month to treat COVID-19 patients. States like New York, which has been especially hard hit by the pandemic, and where hospitals are already using one ventilator for two patients, have pleaded with the Trump administration and manufacturers to speed up ventilator production. On Friday (March 27), President Donald Trump said he would invoke the Defense Production Act-a wartime mobilization law-to direct companies to make ventilators. Ford and GE were among those he named. Ford says their simplified ventilator design relies on air pressure and can meet the needs of most COVID-19 patients without the need for electricity. The companies plan to begin ventilator production at a plant in Michigan around April 20. That's roughly when New York officials expect cases will peak in the state. Ford officials said the workers will be stationed a safe distance apart from one another and will be screened for COVID-19 symptoms before entering the plant. Ventilators built by Ford, GM and others could be used in other parts of the country where the peak is expected to hit later. GM said Sunday (March 29) it plans to produce up to 10,000 ventilators a month by this summer.
Yahoo Finance’s Alexis Christoforous, Brian Sozzi and Rick Newman break down how General Motors is converting its manufacturing process to build ventilators and its tense relationship with the White House.