Ford and GM's $302 Billion Debt Crisis (Bankrupt Soon?)

Ford and GM have long been dominating players in the automobile space. However, over the past few decades, the automakers have piled up hundreds of billions of dollars in debt, and with their slow electrification, the automakers may very well go bankrupt soon. In this video, I cover Ford and GM's $302 Billion debt crisis.

Soundtracks provided by LCS and Buck UK
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[vernonknight]

When your profits come from mainly trucks that are getting to where the common working man can't afford well, then there you have it!

[d]

They better go backrupt this time. It is an absolute outrage that they were given taxpayer money to continue mismanaging their funds and cranking out shit cars. It is a slap in the face to all respectable car manufacturers who would have happily taken their spot in the market creating quality cars.

[theirthereandtheyre]

They deserve to go bankrupt for designing a water pump inside an engine.

[tsh]

Elon Musk said: “Let them die, don’t use taxpayer’s money to bail them out again!”

[carlsapartments]

The FUNNY THING IS that the Ford dude with his 17.5 million salary can't see that Elon Musk and Henry Ford are almost exactly alike in business, disruptors, innovators, doers... and that he is just a paycheck collector doing as he is told by the board of directors!
It's unlikely that the big three would not get Federal assistance in some way, although after the help that was handed out during the big crash in 2008 it may be the impetus to completely redesign the industry and or break up the companies in exchange for financial help! The business model is over 100 years old and I think Tesla recognised the losses from that and then went a different way which the industry tried to prevent him from doing because they saw that it would put their model/system at risk.... and it has done exactly that...!

[davidmann]

I don’t understand how these idiot CEOs think. This is the same thing Harley Davidson is going thru. Overcharging for their products then not understanding why they’re not selling as many units.

[blipco]

Gee, at $80, 000 dollars for a pickup truck you'd think they were making plenty. 💰

[peachjwp]

This video is Highly inaccurate. Ford has a credit arm that finances it's automobiles. That's where the $140 billion in debt comes from. Actual debt on the manufacturing portion is something south of $15 billion. Ford has about $17 billion cash on hand to pay the $86 million of long term debt coming due in 2021. The remainder of the debt is due in segments all the way up to 2047, starting in 2024. The company has plenty ability to pay its debts. FYI current ratio is positive as well. Check the financials.

The stock to worry about is Tesla. Stock is selling at 800 times the 50 cents earned per share. Valued at 8x Ford and GM combined. Now that's unhinged, crazy speculation. And I am not employed with Ford nor do I own any shares to speak of.

I'm not saying buy the stock but they're not going bankrupt anytime soon.

And no I don't believe in corporate welfare, which Ford didn't receive BTW. NYC bankers got bailed out by the untold $billions...they were allowed to borrow massive amounts at zero interest in 2009 from Fed Bank, as well, unbeknownst to American public.

For that matter Puerto Rico just got something like $18 billion gift for being a genuinely f&cked up run place.

[edeovino]

Kind of disingenuous to list total debt and not recognize that it is not all from operations. Most of the debt you talk about is collateralized loans for cars sales by Ford Credit.

[JohnSmith-ueih]

*This is so wrong.* Ford's debt is used for customer loans/leases. For each customer that finances or leases a car from Ford/GM, Ford borrows money to pay for the car. Ford receives payments from customers and then pays their debts.

[nolramonairam]

It just a matter of time for Ford and GM to experience the Nokia moments.

[dao]

Ford and GM should hire a CEO with no salary and only take stock option to prevent bankrupt.

[homeloans]

They don’t call GM “Government Motors” for nothing 🤣

[yggdrasil]

8:24 No Jim Hackett, Elon Musk IS Henry Ford, and Ford Corporation is the horse and cart.

[icelandicinvestor]

The fundamentals of GM and Ford are awful but something tells me that they will be saved from bankruptcy 😕

[mukamuka]

What is the thing Ford, GM and Nokia has in common? They're doing the same thing over & over again but some how expecting a different result...

[mikeferguson]

Maybe it has something to do with their vehicles are overpriced.

[deficator]

Gm already closed down holden world wide. Its just a matter of time before they filing for bankruptecy with the pandemic and rise in EV vehicles.

[willinguyen]

Wow, this is incredible analysis you don't hear anywhere else. Thank you!

[rickdees]

Henry Ford is dead, he's saying Elon is competing with a dead man. Not really difficult to do if you ask me.
Hell, Even Ford should be able to beat a dead man!