MotoramicFord gets its blue oval out of hock: Motoramic Dash
This is the Motoramic Dash, a daily roundup of the most interesting news in the automotive world.
Before the financial meltdown of 2008, Ford had been smart enough to borrow some $24 billion in cash to get through an expected downturn -- but was only able to do so by putting a mortgage on everything it owned, including the blue oval trademark. On Tuesday, Ford got its family jewel out of hock.
As spiffy as it is to have employees from Ford's Dearborn headquarters turn into a living logo, the person most responsible for the deal isn't in the picture. That would be Don Leclair, Ford's former chief financial officer, whose team spotted the storm clouds for the company in 2006, came up with the massive debt plan and sold it to Wall Street. (Leclair's worry about Ford's costs was so intense Ford Americas chief Mark Fields nearly launched a Lane Pryce/Pete Campbell-style fist fight over his proposed cuts in 2006.)
Leclair retired in 2008, after 32 years with Ford, and has stayed out of the limelight ever since. Inside Detroit there's always a running battle over whether "car guys" who get their hands greasy should be in power versus the "bean counters" in the corporate treasury. Ford can build 662-hp Mustangs and desert-raiding Raptor pickups because it didn't go through bankruptcy. The car guys might not be good at finances, but they're in debt to a bean counter on this one.
Other news from around the industry:
Tesla Model S deliveries begin June 22: Quite the week for Elon Musk. First his SpaceX rocket company successfully launches a payload to the International Space Station, and now Tesla will beat its deadline for delivering the first Model S sedans. Everything's coming up Milhouse. (Wall Street Journal)
Fiat, Mazda to make Alfa Romeo from next generation Miata: Mazda will build an Alfa Romeo roadster off its Miata platform in Japan. I don't expect this to lead to a rotary-powered Dodge minivan, but it's likely Fiat, Chrysler and Mazda will soon get much closer. (Detroit News)
Late auto loan payments fall: Good spin: Fewer delinquent loans show people making more money, spending wisely. Bad spin: Automakers have cut back on sales to people with less than sterling credit. (Detroit Free Press)
