2004 Ford Mustang on 2040-cars

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Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Ford is recalling more Takata airbag-equipped Ford and Lincoln models

The Basics: Takata, the beleaguered airbag supplier at the root of the largest recall in automotive history, has informed Ford of a problem with the airbags in just over 30,000 Ford and Lincoln models. The problem is not related to the non-desiccated ammonium nitrate airbag inflators that plague the other airbags ( including many Fords), meaning there isn't a risk of shrapnel flying out from the units in this particular recall. The Problem: In the event of an accident, the front airbags may only partially inflate, and the airbag may become detached from the module because of misaligned parts. The problem affects 2016 and 2017 Ford Edge and Lincoln MKX models built at the Oakville Assembly Plant. The issue also affects 2017 Lincoln Continentals that were built at the Flat Rock Assembly Plant. Injuries/Deaths: In a release, Ford stated that it is not aware of any accidents, injuries, or deaths related to the airbag issue. The Fix: Dealers will replace the driver-side front airbag module at no cost. If You Own One: Sit tight and wait for Ford to notify owners. When that happens, take your car to the dealer for a replacement. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: FordImage Credit: AOL/Drew Phillips Recalls Ford Lincoln Maintenance Safety lincoln mkx

Ford picks Fiesta ST, Transit Connect as this year's SEMA darlings

SEMA is more than nine months away, but the reveille bugle for the show has just sounded with Ford's call to aftermarket companies for its project-vehicle program. The 2014 Ford Fiesta ST and 2014 Transit Connect van and wagon are the cars The Blue Oval wants to feature, but applicants can submit project vehicles for any product except the GT500, the Raptor, or anything from Lincoln.
Submissions must be completed in two parts, the first being an email to Ford with an overview of the project, like vehicle theme, promotional plan and location display. The second part must be mailed in on company letterhead and gets down to the nuts and bolts of the vision and the provision of company bona fides. The complete proposal is due on March 1, winners will be notified by May 1. Click the link below to get all the details, and for show attendees, get ready to see some funky Fiestas and wild shaggin' wagons in Las Vegas come November.