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Analysis of Ford Motor Co. (NYSE:F)
Ford Motor Company and its subsidiaries design, develop, manufacture, and service cars, trucks, and parts worldwide. The company operates through two sectors: Automotive and Financial Services. The Automotive sector sells cars, trucks, and parts under Ford, Mercury, Lincoln, Volvo, Land Rover, Jaguar, and Aston Martin brand names. This sector markets its products through retail dealers in North America, and through distributors and dealers outside of North America. In addition, it sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. This sector also provides a range of after-the-sale vehicle services and products, maintenance and light repair, heavy repair, collision, vehicle accessories, and extended service warranty. The Finance Services sector offers various automotive financing products to and through automotive dealers worldwide. It offers retail financing, wholesale financing, and other financing, such as making loans to dealers for working capital, improvements to dealership facilities, and the acquisition and refinancing of dealership real estate. This sector services the finance receivables and leases that it originates and purchases, makes loans to affiliates, purchases receivables, and provides insurance services related to its financing programs. The company was founded in 1903 and is based in Dearborn, Michigan.
Shares were up 1% after UAW Accuses Auto Companies of Posturing Before Contract Talks.
Claims by the three major U.S.-based automakers that they must cut average wage-and-benefit costs by $30 per hour to compete with Asian rivals are merely pre-negotiation posturing, two top United Auto Workers officials told members Friday 2007-06-22.
In an Internet chat with union members, President Ron Gettelfinger and Vice President Cal Rapson said they keep hearing reports of the $30-per-hour figure, but said they will not negotiate in the press.
The men were responding to a question about how to make sure General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group survive without giving major concessions.
But in answering a question from a GM retiree's spouse about problems with a mail-order pharmacy she is required to use, the leaders said the mail operation has saved millions of dollars in health care costs.
"We realize there have been problems with changing to the mail order prescription plan," Rapson and Gettelfinger wrote. "It is vital that we reduce costs wherever we can to ensure we have health care coverage in the future."
No mention was made during the hourlong chat of a potential agreement with GM and struggling auto parts maker Delphi Corp.
Delphi, GM's former parts-making arm that was spun off as a separate company in 1999, has said it needs a lower wage scale and other changes to compete against suppliers with cheaper labor costs.
GM shares fell 64 cents to $35.32 in midday trading, while Ford shares rose 15 cents to $9.06 and DaimlerChrysler's U.S. shares dropped 82 cents to $90.29.
As the saying goes...follow the money!
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