1975 Ford Thunderbird on 2040-cars

Auto blog

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.

2015 Ford Transit

As a segment, fullsize vans are stealth-fighter invisible on most consumers' radar. Visit a dealership for any of the four brands that offer them and you'll be lucky to find even one on display. These are commercial vehicles primarily, even more so than pickup trucks. Vans are the shuttles for plumbers, caterers, carpenters, concrete layers, masons, electricians, florists and flooring, and a huge part of this country's productivity is accomplished using them. At the moment, Ford is the 800-pound gorilla in that room - fully 41 percent of commercial vehicles wear a Blue Oval. So when Ford announced three years ago it would be ditching its commercial bread-and-butter E-Series, it meant the Transit that would be replacing the Econoline had huge, 53-year-old shoes to fill.
We were still a bit nostalgic about Econoline vans going away until going directly from the Transit first drive in Kansas City to an E-350 airport shuttle. Climb up through the Econoline's tiny double doors and bang your head on the opening, crouch all the way to your seat then enjoy a loud, rattle-prone, creaky, harsh ride on beam-hard seats while struggling to see out the low windows. This is an experience nearly every traveler has had. By comparison, the Transits we'd just spent two days with were every bit of the four decades better they needed to be. It cannot be understated just how much better the Transit is in every single way. The load floor is barely more than knee high. There's a huge side door, and hitting your head on a door opening is nearly impossible. Stand up all the way if you're under six-foot, six-inches - no more half-hunching down the aisle. There are windows actually designed to be looked out of. The ride is buttery smooth, no booming vibration from un-restrained metal panels and no squeaks. Conversations can be held at normal levels rather than yelling over the roar of an ancient V8. The seats are comfortable. The AC is cold. There are cupholders.
Enough anecdote-laying, what's in a Transit? We're talking about a very fullsized unibody van that's enjoyed a 49-year history in Ye Olde Europe. This latest iteration is part of the "One Ford" initiative, so it was designed as a global offering from the get-go, eschewing the body-on-frame construction the E-Series has used since 1975. Instead, the Transit integrates a rigid ladder frame into an overall frame construction made of high-strength cold-rolled and boron steel. The suspension is a simple but well-tuned Macpherson strut array up front with a rear solid axle and leaf springs.

2015 Roush Stage 3 Mustang has 670 hp

My last speeding ticket was nearly two years ago while behind the wheel of a 2014 Roush Stage 3 Mustang. Considering the supercharged 5.0-liter V8 produced 575 horsepower – the lowest of the Stage 3's tunes – an encounter with the friendly folks at the Michigan State Police seemed inevitable. With the 2015 Stage 3 producing 95 more horsepower, if and when I drive the new supercharged 'Stang, another meeting with Michigan's finest seems likely. The combination of the Ford 5.0-liter V8 and a 2.3-liter TVS supercharger turns out 670 horsepower, which should have owners of the weightier Dodge Challenger Hellcat at least a bit nervous. All that power is complemented by 545 pound-feet of torque and what is almost certainly an ear-shattering exhaust note from the quad-tip pipes. On top of the RS3's trademark sound and speed, Roush has fitted the sixth-generation Mustang's body with a new "R7" aero kit that actually looks toned down from last year's car. 20-inch "Quicksilver" wheels are standard, although Roush is offering a pair of optional designs. Either way, Cooper RS3 tires are the rubber of choice. Prices for the Roush Stage 3 Mustang start at $21,995, not including the $32,300 starting price of a Mustang GT donor car. Scroll down for the official press release. Related Video: ROUSH Stage 3 Mustang Produces 670 HP May 7, 2015 – PLYMOUTH, MICHIGAN – ROUSH Performance is excited to announce final horsepower ratings for the all-new 2015 ROUSH Stage 3 Mustang. The RS3 is cranking out a heart-racing 670 horsepower and 545 lb-ft of torque to deliver the ultimate driving experience. All 670 horsepower are created as a direct result of the powerful combination of Ford's 5.0L V8 engine with ROUSH Performance's dynamic new 2015 2.3L TVS supercharger. The new ROUSH Mustang's generous power ratings impeccably compliment the RS3's list of standard and optional features, including the ROUSH Quad-Tip exhaust (with optional ROUSH Active Exhaust System), standard single-adjustable coilover suspension system (or optional competition-tuned 3-way adjustable system), and the fierce new "R7" aerobody. The 2015 ROUSH Stage 3 Mustang is not just a car – it's an experience. The RS3 truly bridges the gap between road car and race car, putting drivers behind the wheel of the ultimate uninhibited muscle car.