Ford swap?

[Basket Case]

I would take this over an lsx any day. A high(fairly) revving v8 with tons of aftermarket support would be killer.

[Basket Case]

Originally Posted by mikegt86

Its gonna be a popular swap. I've already acquired 5.0 motor for dirt cheap. Less than the price of the openflash tablet. Gonna end up piecing this swap together.

Where in the world did you get a coyote 5.0 for that price?

[Summerwolf]

LOL

[Summerwolf]

Originally Posted by The Slow One

I would honestly prefer a Coyote Engine. They seem to be more reliable compared to the lsx guys out at our local tracks.

....what? In what way?

[Chad11491]

Originally Posted by industrial

Crap on GM all you want but they are so much better than Chrysler.

That doesn't take much. My family is a Ford family, literally everyone in my family owns all ford products. They have owned a few GM products and are ok with them, but what they really loathe is Chrysler.When my uncle bought a challenger r/t a few months ago you wouldn't believe the crap we gave him about his boat. We razzed him for a good month on it. Strangely they have always been positive towards me and my other uncle's Z's and my BRZ.


But anyway, Chrysler makes turds that barely belong on the road.

[Koa]

Originally Posted by industrial

Only American company not to take a bail out. Which has more to do with the fact that Ford just secured a large sum of long term loans before the credit markets froze. GM only needed a "bail out" because the credit markets were frozen. I wonder if people understand the difference between a "bail out" and a loan for operating expenses during a frozen credit market (which just doesn't happen, you can't plan for it). Ford did not have better products than GM in 2007. Look at the 2007 American Ford line up...full of turds.

Ford is producing some good stuff now for sure. Crap on GM all you want but they are so much better than Chrysler. I guess there are enough idiots to keep buying their mainline cars and trucks.

I never saw this reply.. lots to say here but none of it good for government motors.. Cashflow and access to capital is very important to a business but it's not so clear cut as to say working capital and GM's inability to acquire to last-minute funding from the U.S. was the true case here.

We as investors can look up a line-up, or we can see how operations fared via their SEC filings to determine the true health of the outfits:


Exhibit 1 | GM 2007 form 10-k
http://www.sec.gov/Archives/edgar/da...7e10vk.htm#114

Exhibit 2 | Ford Motor Co 2007 form 10-k
http://bigthreeauto.procon.org/sourcefiles/Ford_10K.pdf

Notice GM's cumulative ~50 billion dollar loss from operations over four years, which directly translated to a hemorrhaging stock value and confidence shattered as investors panicked leading up to and during the great bailout.

Compare that to Ford's cumulative ~10 billion dollar loss from operations over four years. This isn't diving deeper than the consolidated IC statement

Onto the ratio analysis

As you say, working capital, classically defined as current assets less current liabilities, attempt to match the immediate ability for a business to pay its debts on a pivot in a worst case scenario. Therefore the current ratio, or CA/CL, is the go-to napkin math metric (along with inventory turnover or manufacturing turnover for most outfits) to quickly assess the health of a business.

However, as car manufacturers deal with a very long product conversion and inventory turnover, it would make more sense to do an acid test with their CA & CL via the 'quick ratio':

Cash + Marketable Securities + Accounts Receivable / Current Liabilities

This is a stringent test of liquidity, as inventory and prepaid expenses do not get considered- most cannot be easily turned to cash.

Therefore, the ratios for each during 2007:

GM:
Current ratio: 86%
Quick ratio: 52%

Ford:
Current ratio: 108%
Quick ratio: 110%

For 2006:

GM:
Current ratio: 98%
Quick ratio: 49%

Ford:
Current ratio: 106%
Quick ratio: 114%

Look at the disparity between GM's current and quick ratio. That is a huge signal that GM is failing at maintaining an adequate level of liquidity and is, and demonstrably was, going to fail if it didn't change things. Ford's liquidity transcended their overall CR- a VERY positive sign for any operator, all else non-considered.

This is not taking into consideration Ford's tremendously larger Finance receivables, which arguably we could cut in a third and use that to calculate cash able to be converted from A/R within a year... as most loans are through a three year span. I did include GM's finance receivables because they are so immaterial- at 215 million compared to Ford's 112 BILLION- that it would have been almost unfair to include even a third of Ford's fin AR into the comparison.

Notice we didn't even touch cashflow yet or talk about working capital. The quick ratio is the #1 metric to use in assessing a firm's ability to operate with the resources on tap. A warehouse full of inventory does nothing if its not moving, and receivables help none if the cash cannot be collected. Part of my work is managing my company's three billion dollar inventory spread across fourteen divisions, and man it gets hectic I'll tell ya- and we don't focus on manufacturing even, so the accounting and fiscal tools and procedures required to be competent are far less than these guys.


The story of GM, and others like it, are sad and you're right- there's much more to it than meets the eye. Very complicated and filings only tell the aggregate, not the story- but they do show in full detail the result of their struggles or splendors.

Ford suffered a huge $18 billion net loss in 2006, but arguably this was due to the climate in general. The industry average was a net loss in the teens of billions. The 10ks tell all


--

p.s it's funny that you mention GM is way better than Fiat-Chrysler as I'm sure its old news around here, but they made a pass at taking GM over the other week.

I'm not a Ford guy per-se, but I spent a bit of time following this whole debacle and it's ridiculous how we bailed out yet another failing institution during this period- subprime lending bubble burst also comes to mind around this time.

[Koa]

One more address to your attestation about whether people understand bailout versus loan for working capital:

It's a bail-out when the Government, or any entity, assumes equity in an organization.

It's a loan when a company receives cash and in turn pays the principal back plus interest for the immediate benefit of being able to use a liquid resource, in this case the king of all (for now.. arguably): greenbacks.

GM repaid their final loan payment in what.. 2010? The government still held their 61% something stake in both common and preferred. If I remember correctly GM then bought back all preferred, and the government had to eventually spin off their common shares on the open market during the following years after.

[BirgeyT1]

Enjoy guys!
[ame="https://www.youtube.com/watch?v=bRdUv7V4Ugk"]https://www.youtube.com/watch?v=bRdUv7V4Ugk[/ame]

[NyC Zn6]

Originally Posted by Basket Case

Where in the world did you get a coyote 5.0 for that price?

Pretty sure he means an older 302 5.0 definitely not a coyote.

[D K]

If you gonna go na, might as well wait for the Voodoo with the flat plane.

Otherwise, 3.5 EcoBoost would be my choice

[Sleepless]

Never would have guessed a Coyote would fit!

Pretty cool! However, I'd rather just get late model Mustang GT...

[itsaralphlife]

sounds wicked. i want a v8 now lol

[Packofcrows]

As much as this makes me feel upset of a Japan car and American engine, i love it! Fk normal and status quo. Fav is ls1 in BRZ so far.

Would love to see it in person.

[Basket Case]

Originally Posted by BirgeyT1

Enjoy guys!

Badass! Is this a kit that will be sold eventually, or is it a one off swap?