Things were going from bad to worse for the car that finally stockholders of Ford, along with the heirs of Henry Ford are faced with the prospect of finally leave the control of the company either like it or not exceeding lose everything in end.
The company was lending only to meet the financing needs of the company and when it has exhausted all its resources and will need new investments to pay back their factories to launch new models, and to push through with its plan of expanding to world markets. The question is: There are still investors and lenders that would risk additional billions knowing the family gloomy history as controlling shareholder? Frankly with the condition that this is the automobile, it is difficult to imagine that there will be investors who are willing to take the risks.
The current wave of interest in private equity in Detroit automakers and suppliers would have been at Ford & 39; s advantage of Finding a financial partner, but unfortunately, that most investors are not prepared to risk on the whims of the family controlled management unless, of course, the family happens to have an excellent record when it comes to treating a business.
Last May 10, Ford& 39;s shareholders have rejected a proposal to end the control of the family. The proposal would definitely face long odds especially because the family owns 40 percent of the votes. However, the margin of defeat was more restricted this year compared with previous years. The results show that 45 percent of non-family voters would like to see the family out of power.
For the 104 years of Ford has always been controlled by the Ford family, with the addition of some hired hands. It is not only because the family has summarily dismissed or forced out non-family CEO officers.
In the latest happening in the Ford family has a facility to outside itself. After disappointing financial results, Bill Ford Jr. Gave up last September has his position of CEO in favor of Allan Mulally, who is a senior executive Boeing Co. Recruited to try to help restore the financial health automobile. Moreover Bill Ford Jr. Chairman.
CEO Mullally has remained optimistic, despite the crisis After his appointment as new CEO, Mulally has swung into action donors over Ford& 39;s assets to borrow $ 23.5 billion in cash. And why is a self-made lead time business, would require at least two or three years before Mulally could see the results of all their efforts. Hopefully Ford & 39; s cash hoard will last during this period and, of course, it is also expected that the car should earn profit before has run out completely cash.
The current price of shares of Ford is $ 8.78 giving it a market value of $ 16.5 billion, who is a little more than Harley-Davidson Inc. The price of the car is down by 75 percent from its peak in 1999, this can be seen as little more than an option for the company to avoid bankruptcy 2010. Despite the crisis that the company is in right now CEO Mulallly is optimistic that the car will be profitable again. Ford has been a net loss of $ 12.6 billion last year and $ 282 million in the first quarter of this year, which makes me wonder how long CEO Mulally can keep its positive facade.
The Circle of Trust Bill Ford aged 50 with his cousin Edsel 58, Your father Bill Sr., 82, plus a handful of Fords --- all have held senior posts in the Ford or on its behalf. They, along with dozens of other family members also had super-voting Class B shares in a family trust. For those not aware of what Class B stock is that it represents 40 percent of shareholders voting with less than 4 percent of equity.
Class B shares are held by family members only. If any family wants to buy B shares these parts are offered for sale where they are converted to Class A shares and finally sold for cash. When B shares are converted, the family loses a proportion of control.
Last April 21, Ford met with investment bankers Joseph Perella and Peter Weinberg, in Dearborn, Michigan. Mulally spoke at the meeting which took place shortly family members of the majority who are not close to the company& 39;s operations. The meeting was private but Steve Hamp, Bill Ford Jr. & 39; S brother-in-law, later told Detroit News that the concept of bringing an outsider as adviser was not agreed by everyone that it was not yet time.
According From David Cole, president of the Research Center Automobile in Ann Arbor, Michigan, " As most companies are going down the road to generations who have difficulties and that is why they sell out. I do not think that the Fords are different. You ride the problems or leave? What do you do? "
Not all Fords are concerned about the imminent bankruptcy of Ford Motors, such as Dr. Bill Ford, owner of the Detroit Lions, and Elena Ford, 40 daughter of Greek shipping tycoon --- they are Fords are rich, even without having a piece of the automobile. But the other Fords those who are not truly rich and are just depending on the stock dividend of Ford Motors are really feeling the pinch especially after that the company has suspended the release of the common stock dividend last summer.
If suspension of the common stock dividend had Already a major impact on some members of the family Ford imagine their concerns are Ford Motors finally ends in bankruptcy, which would definitely make their shares worthless unless of course that begin selling its shares today, that the only way a cost meager $ 8 or $ 9 a share. adrien ibiza
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