Investors already know how the coronavirus outbreak has hurt Ford Motor Co's bottom line, so when the automaker releases first-quarter results on Tuesday they will focus on how and when Ford plans to restart North American operations.
) are aiming to resume production some time in May, and are negotiating with the United Auto Workers union, which represents their U.S. hourly workers, about how to safely resume vehicle production. FCA and GM are scheduled to report quarterly results on May 5 and 6, respectively.Ford, whose credit rating has been downgraded to “junk” status by Standard & Poor’s, has not said when it plans to reopen in North America.
Ford has idled most of its European plants until May 4, but has resumed operations in China, where the pandemic began and where sales fell 35% in the first quarter. U.S. sales fell 12.5%. Prior to the bond deal, Ford told investors that absent new funding and a restart of production, it had cash to last until the end of the third quarter. It also said revenue in the first quarter would finish at about $34 billion.
Ford also warned that production of high-priced versions of pickups and SUVs could be hurt due to damage caused by a tornado at parts supplier BorgWarner Inc’s South Carolina factory. That facility makes transfer cases for some of Ford’s most profitable vehicles, such as four wheel-drive large F-series pickups and large SUVs.Earlier in April, Ford’s U.S. sales chief, Mark LaNeve, told Reuters the automaker believed some level of government stimulus for the U.S.
During the Great Recession of 2008-09, the U.S. government rolled out a “cash for clunkers” program, which offered consumers rebates of up to $4,500 to trade in older gas guzzlers.
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