Ford: a nightmare?

We are people that admire the icon Ford and the entrepreneur Henry Ford.

Nevertheless, we think Ford is in crossroads: the turnaround or the end.

Read this:

• Ford is losing market share in the U.S. for the 11th consecutive year.
• Its U.S. sales tumbled 9.6 percent last month as the automaker lost business to rivals.
• The automaker reported a loss of $6.99 billion for the first nine months of 2006.
• its shares have fallen 7.25 percent this year to $7.16.
• The automaker's U.S. decline this year has been led by some of its best-selling vehicles, such as the F-Series pickup, down 10 percent through November, and the Explorer sport-utility vehicle, whose sales fell 26 percent.

But the markets have given them, enough money to support the turnaround:

• a new $18.5 billion loan agreement, will provide the Dearborn, Michigan-based automaker with enough money to eliminate 40,000 jobs and close nine factories.
• The $4.5 billion of 4.25 percent bonds (convertible bonds) due in 2036 .

....but the market is making a warning:

• Fitch Ratings on Dec. 6 cut Ford's unsecured debt one level to B- from B.
• Moody's rates the notes Caa1 and S&P gave them an equivalent ranking CCC+.
• Bonds rated below BBB- by S&P and Fitch and Baa3 by Moody's are considered below-investment grade

This will be a fine management lesson, for the future: the excellence or the complete failure.