New Ford Shares Program Looming

The Ford Motor Company has been working diligently since last fall to survive the economic calamity that is besetting the global auto industry with the US market being among the worst hit of them all. Part of that strategy has been to separate the fortunes of the automaker from its US competitors, Chrysler and General Motors, in a bid to show customers, dealers and the federal government that Ford is on a different path when it comes to ensuring their long term success.

New Models Coming Online

But even with more new models coming online than GM and Chrysler combined, Ford still must shake off the perception that they may soon face the same dilemma besetting their crosstown rivals — needing federal assistance that ultimately would translate into federal intervention. To keep the Ford ship afloat, the automaker needs money — when customers aren’t buying in droves as they were early last year, that means that Ford needs to turn to other sources in a bid to raise capital.

Financed to the hilt, Ford has mortgaged all of its prime assets and is going through money at a feverish clip. Fortunately, in their wisdom the automaker has cut deals with its unions, management, white collar staff, suppliers and anyone else who has a vested interest in the company’s success which has effectively reduced the company’s overhead.

Time For A Stock Offering

One way that Ford plans to ensure that it has plenty of funding to survive the current economic downturn is to raise cash through a public offering of common stock. To that end, the automaker filed documents with the federal government on Monday noting that the founds being raised from the stock offering are expected to fund its cash obligation to the company’s health-care trust.

Ford is banking on a recent stock rally which has helped the price of its common stock increase four-fold in the past three months.  Shares of Ford stock closed at $6.07 yesterday, thus the price of the stock being offered will be set when markets close today.

300 million shares will be offered in the Ford stock initiative, what Ford hopes will yield the company between 1.7 and 2 billion dollars. The automaker is risking raising the ire of current stockholders who could see their price diluted, but given the current state of the market and Ford’s need to raise funds, a stock move now may be the best move forward that Ford can make.

Source: The Wall Street Journal

See also — Ford Sponsoring American Idol Finale Parties

North American COTY, TOTY Finalists Announced

50 automotive writers and journalists from Canada and U.S. have voted to name their selection for the prestigious 2009 North American Car (COTY) and Truck (TOTY) of the Year awards, with the winners to be revealed in January at the North American International Auto Show in Detroit.

Voting takes place early December and each juror has 25 points to distribute for car and 25 for truck nominees. No more than 10 points may be awarded to any one vehicle, and the 10-point maximum can be bestowed only once. However, the juror must award all 25 points.

This year 14 cars were nominated along with 11 trucks.

The three car finalists are:

• Ford Flex
• Hyundai Genesis
• Volkswagen Jetta TDI

The three truck finalists are:

• Ford F-150
• Dodge Ram
• Mercedes-Benz ML320 BlueTEC

To be eligible, vehicles must be “all-new” or “substantially changed” from the previous model. This year the jury considered more than 50 vehicles and finally settled on 14 cars and 11 trucks that deserved to be on the ballot.

Michelle Collins, Vice Chairman Automotive at Deloitte & Touche, was responsible for counting the ballots, which jurors sent directly to the accounting firm. Only Ms. Collins will know who the winner is when the awards are announced at the NAIAS on January 11th.

Last year the North American Car of the Year was the Chevrolet Malibu and the North American Truck of the Year was the Mazda CX-9.

Who do I think will win? The Hyundai Genesis will win the COTY while the TOTY will go to the Ford F-150.

Source: North American Car & Truck of the Year