Recession around the corner?

Yaj Yak

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DETROIT -- Ford Motor Co.’s $11 billion restructuring could cost 25,000 employees their jobs, exceeding the cutbacks General Motors announced last week, according to Morgan Stanley.

Ford has yet to detail its job cuts, but Morgan Stanley analyst Adam Jonas predicts they could be larger than GM’s in a note to investors.

“We estimate a large portion of Ford’s restructuring actions will be focused on Ford Europe, a business we currently value at negative $7 billion,” Jonas wrote. “But we also expect a significant restructuring effort in North America, involving significant numbers of both salaried and hourly UAW and (Canadian union) workers.”
fuck
 

Spivitz

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I'm a bit concerned...
 

cdh027

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Not encouraging news.
 

10sec

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I keep seeing more and forclosures popping up when I look for homes. Nothing concerning though and prices are starting to come down a little too.
 

DEEZUZ

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Meh. Need to flush out some of these face book shops round here.
 

N20GT

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Auto manufacturers can't sell 17 million cars a year in the US forever.

Recession, i don't think so. Correction, absolutely. The fed finally raised interest rates...slowdowns in housing/automotive are expected after that.
 

radioguy6

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keep blaming sedans but they seem to be selling over at Hyundai, Toyota, Nissan, Honda. The American sedan is going the way of the minivan, Chrysler invented it and the Japanese and Koreans made it better.

But for fuck sake no bailout v2.0 this time. No fat suits rolling up to congress in their G650s. I'm sorry but its quite a slap in the tax payers face seeing all those "saved GM jobs" disappearing 10 years later.... and Chrysler being bought out by a foreign car company.
 

Red Alert

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Don’t forget to factor in all the companies that fall under those manufactures umbrellas... thousands of suppliers will close; then factor in the suppliers of the suppliers closing.
 

Spivitz

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Stock up now fellas cause soon we might be walking the tracks for coal
 

radioguy6

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I think the next logical step in repeating history is a cash for clunkers program to trash all those unsafe, dangerous, untrendy sedans, and get yourself a deal on a new crossover SUV :s00ls:
 

sickmint79

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i think it pretty unlikely we're heading into a recession right now.
 

Lead Pipe

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i think it pretty unlikely we're heading into a recession right now.
Exactly, we're not far enough removed from the last one. Inflation usually continues for a while after a recession with correction spread through out. Cars have been lasting up to 200,000 miles, how do you expect to sell as many cars when they used to last half as long.
 

sickmint79

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Exactly, we're not far enough removed from the last one. Inflation usually continues for a while after a recession with correction spread through out. Cars have been lasting up to 200,000 miles, how do you expect to sell as many cars when they used to last half as long.
actually one of the claims that we're due for one is based on how far we have gone without one; by number of months, i believe we're at the longest expansion on record (245 months)
 

Ryan02Stang

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I usually take Adam Jonas's predictions with a grain of salt...

Earlier this year he slashed his Tesla stock target from $376 to $291 (it was around $290 at the time of his slash). Today Tesla is at ~$360.
 

N20GT

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actually one of the claims that we're due for one is based on how far we have gone without one; by number of months, i believe we're at the longest expansion on record (245 months)
That's over 20 years...methinks your months are wrong
 

N20GT

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keep blaming sedans but they seem to be selling over at Hyundai, Toyota, Nissan, Honda. The American sedan is going the way of the minivan, Chrysler invented it and the Japanese and Koreans made it better.

But for fuck sake no bailout v2.0 this time. No fat suits rolling up to congress in their G650s. I'm sorry but its quite a slap in the tax payers face seeing all those "saved GM jobs" disappearing 10 years later.... and Chrysler being bought out by a foreign car company.
They're leaning up to prepare for a slowdown. They also know that they can't stay staffed at capacity that supports 17m units/year of sales in the US without going bankrupt in the next slowdown.


Do you want them to make fiscally responsible decisions, or do you want to bail them out. Pick one...the way you worded your comment makes it seem like they should keep employing everyone while also performing well in every business cycle. That's now how it works
 

radioguy6

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They're leaning up to prepare for a slowdown. They also know that they can't stay staffed at capacity that supports 17m units/year of sales in the US without going bankrupt in the next slowdown.


Do you want them to make fiscally responsible decisions, or do you want to bail them out. Pick one...the way you worded your comment makes it seem like they should keep employing everyone while also performing well in every business cycle. That's now how it works
I just like how they blame sedans for their failures. People just dont want to buy their sedans. Obviously fiscally responsible is the preferred method and I dont like to see history repeat itself after we already gave them 49 billion tax dollars to become fiscally responsible and save jobs. If the Americans don't want to produce sedans, they're basically handing off an entire market segment to the Japanese and Koreans. In which the foreign makers will undoubtedly continue reinvesting those increased sales into EVs and more trendy crossover SUVs...err I mean raised sedans.

edit: all i'm trying to say is I hope their restructuring plans are successful in the long term. I don't think its fair to the American tax payer if we had to bail them out again.
 

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