1990 Ford Probe Lx Hatchback 2-door 3.0l 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.

2020 Ford Explorer safer than old model; crash test ratings short of Top Safety Pick

The 2020 Ford Explorer three-row crossover has improved on the outgoing model in many ways. According to the IIHS, it has also improved in a number of safety categories, but not enough to earn a Top Safety Pick award. The culprit is not the headlight performance for once. The Explorer's headlights were given an "Acceptable" rating, which would be sufficient for Top Safety Pick, if not Top Safety Pick +. Where the Ford falls short is in the front small overlap driver-side crash test, in which it got the second highest "Acceptable" rating. The IIHS requires a "Good" rating in this category, whereas an "Acceptable" rating on the passenger side would be, well, acceptable for Top Safety Pick. According to IIHS, Ford will be reviewing the results to figure out what the issue is, and it will likely make revisions to future Explorers to improve the result. Other than the one test, the Explorer performed admirably. It received a "Good" rating in all other crash categories except the passenger-side small overlap that was not tested. Both its standard and optional forward collision prevention systems had the highest "Superior" ratings, with the standard one preventing a collision with a car at speeds of up to 25 mph, and the optional one avoiding a collision at 12 mph, and "nearly" preventing one at 25 mph. Headlights are rated as "Acceptable" and so is access to child seat LATCH anchors. Also worth noting is that the Explorer's crash test ratings apply to its luxurious twin the 2020 Lincoln Aviator, meaning it also doesn't get a Top Safety Pick rating. The forward collision system performed the same as in the Ford, and the only difference between the two was in headlight performance. The Lincoln's standard headlights, included on the base, Reserve and Grand Touring trims, have the second-lowest "Marginal" rating, but the optional headlights for those trims, and the standard ones on the Black Label trim, received the "Good" rating. Among three-row Explorer competitors, the Honda Pilot, Hyundai Santa Fe XL, Kia Telluride, Nissan Pathfinder and Toyota Highlander all have a Top Safety Pick. The Hyundai Palisade, Mazda CX-9, Subaru Ascent, and the slightly smaller Kia Sorento and Volkswagen Tiguan all have a Top Safety Pick +. As for Lincoln Aviator competitors, the Cadillac XT6, Infiniti QX60, Lexus RX and Volvo XC90 get a Top Safety Pick. The Mercedes-Benz GLE-Class and two-row-only BMW X5 get the Top Safety Pick + rating. Related Video:      

Ford CEO Mark Fields takes home $18.6 million

Sitting atop the throne at Ford Motor Company is, as it turns out, a fairly lucrative gig. We make that statement after learning, through SEC filings, that FoMoCo's Mark Fields raked in $18.6 million in compensation during his first year as CEO. Now, as is so often the case, Fields' earnings weren't just straight salary. Only $1.7 million of that sum was from his salary, while another $3.2 million came from cash bonuses. The remaining $13.7 million, though, came from what The Detroit Free Press called "long-term stock options, performance equity awards and compensation for items such as security and travel," according to the SEC filing. That makes for a significant raise for Fields, who made $10.1 million in 2013, but it still doesn't match his predecessor, former CEO Alan Mulally. The 69-year-old Mulally earned $23.2 million in his final year as CEO, while bringing in $1 million last year as part of a $22 million compensation package. Fields' earnings may ruffle some features for a few reasons. First, while the Freep reports that Ford hit 91 percent of its performance goals, 2014's earnings were down $4 billion, to $3.2 billion, compared to the $7.2 billion the company made in 2013. On top of that, the CEO's take-home might be sour grapes for hourly employees, who were only treated to checks worth $6,900, as part of a profit-sharing plan. To that, Ford said in a statement that, "We remain absolutely committed to aligning executive compensation with the company's business performance and to tying a significant portion of executive compensation to long-term shareholder value." News Source: The Detroit Free PressImage Credit: Paul Sancya / AP Earnings/Financials Ford alan mulally Mark Fields