While not in need of a government bailout, poor financial results are straining Ford’s
capital. Cash burn continues unabated, and estimates indicate Ford may be forced to
seek government financing by early 2010 unless sales stabilize.
o While Ford is readjusting production, truck sales are falling rapidly and Ford may not
be able to shift production quickly enough to meet changing demand.
o Bankruptcy of Visteon or other parts supplier could cause severe disruption of
supply chain.
o While Ford has too many dealers at this time, it should remain wary of too many
closures. In addition, because Ford Credit provides financing for most dealers it
must be careful to avoid holding the bag when dealerships close.