Ford Bets On Mustang's Reputation With Mexico-made Mach-E SUV

Ford Bets On Mustang's Reputation With Mexico-made Mach-E SUV

DETROIT - The Mustang Mach-E is a groundbreaking vehicle for Ford Motor that marks the beginning of a new-generation of all-electric vehicles and the first time the iconic name has been used on anything but a two-door pony car. Ford is betting the Mustang name will resonate with consumers and assist the company's first all-electric SUV in standing out in an increasingly crowded field. It's a bold decision that could dilute the Mustang name if unsuccessful. There's also chance of political backlash since the vehicle is being produced in Mexico and imported to the U.S. Jessica Caldwell, executive director of Industry Analysis at auto research firm Edmunds. Ford previously confirmed production of the vehicle would be south of the border, however that was before it became a Mustang. Importing such a well-known American name to the U.S. President Donald Trump's America-first policies and ongoing negotiations of a new North American trade deal.

Trump, many times through Twitter, has attacked automakers for importing vehicles from Mexico, China and other countries. He also earlier this year attacked Ford and other automakers for not supporting his administration's plan to roll back Obama-era fuel efficiency rules. American automakers have traditionally attempted to keep well-known American vehicles such as Mustang, Chevrolet Corvette and Jeep Wrangler in the U.S. Ford's crosstown rival, General Motors, received significant backlash, mainly from politicians and unions, for its decision to resurrect the Chevrolet Blazer, a well-known American SUV for decades, and import it from Mexico. Ford is expected to release additional details of the vehicle during its unveiling on Sunday. Ford reiterated that the company is America's top producer of vehicles and the largest employer of UAW-represented autoworkers. More than 80% of the vehicles Ford sells in America are built in the U.S., including the Ford Mustang at its Flat Rock plant in Michigan.

That's production lines with industrial robots and at least one stamping machine. Spending and paying are two different things. As soon as you take delivery / ownership of the tooling, it goes into your Assets and Payables. When you pay you remove from Payables and reduce Cash. Vendors generally don't bill Tesla for the final, largest payment until the equipment and tooling are proven on the production line. It only goes into Accounts Payable after Tesla gets the bill. Prior to that it's an Accrued Liability. It won't show up as capex on Tesla's cash flow statement until they actually write the check. If you are purely talking about cash flows, you are right, though. Capex is a cash flow statement item. Tesla's capex guidance reflects that line item. If Tesla were actually paying for GF3 most of the Phase 1 capex would show in 2020. But I think they're only paying for tooling and incidentals. But the acquisition of the tooling itself is done. The bulk of GF3 tooling won't arrive for a couple more months, IMHO. Some of it is in AP because they have to make progress payments on the dies and such.

But I don't expect the big payments to hit capex until next year. And as I said, I don't expect the much larger building and equipment costs to show up as capex at all. Whenever you quote an article from the future that mentions the stock price of a stock that has split multiple times, you should always note that the price you are quoting has not been adjusted for splits. Have to admit have PTSD over this tweeting crap. I hedged out my trading position 100%. Was a lot easier to do based on the past two days. He is just too smart for this crap. He is being defiant here. Honestly, it was after hours and Elon is on record that tweets are an allowable way to communicate with market, but I do not know how this pertains to the agreement. You would think the FUD alone over the next couple of days on this could be worth ten percent. Hey, if I am wrong, still loaded with Tesla. Have to admit have PTSD over this tweeting crap. I hedged out my trading position 100%. Was a lot easier to do based on the past two days.