[Wally]

I suspect they won't be the only one looking at plant sleeps:

BY BRENT SNAVELY • FREE PRESS BUSINESS WRITER • April 24, 2009

After pushing the message that "Ford is different" from its struggling domestic rivals, the Dearborn-based automaker is expected to report a first-quarter loss today and reveal how much cash it has left to survive the economic downturn.


Ford is expected to report a loss of $2.8 billion, or $1.24 per share, according to the consensus estimate of 14 analysts surveyed by Thomson One Analytics.

Ford posted a record $14.6-billion loss in 2008, and the automaker doesn't expect to earn a profit until 2011, according to its annual report. But its image has benefited from the fact it hasn't borrowed money from the U.S. government. Crosstown rivals General Motors Corp. and Chrysler LLC are operating on $17.4 billion in loans.

"We like being independent, and we plan to remain that way," Ford Executive Chairman Bill Ford told Larry King on CNN Tuesday.

Ford is racing to cut costs across every corner of its operations to stay ahead of the global recession, but some analysts say they remain concerned it won't be enough.

Ford shaved about $1 billion by modifying its labor agreement with the UAW and cutting interest expenses through a successful debt restructuring. The automaker also is working with its dealers to save $300 per vehicle in marketing and other costs.

Ford's stock price has more than doubled since March 6, when it closed at $1.70. On Thursday, Ford's stock closed at $4.49.

Since January, Ford's sales of cars and trucks have declined 43.3% in the United States, its most critical market, compared with 38.4% for the industry, according to Autodata Corp. In Europe, Ford's sales declined 16.3% compared with 16.9% for the industry, according to JATO Dynamics.

With global sales at such low levels, Standard & Poor's warned that Ford might not have enough cash left to run its business by the end of 2009.

Analysts estimate that Ford needs $8 billion to $10 billion to operate. At the end of 2008, Ford had $24 billion in cash and credit. But some analysts estimate that Ford is burning through $1 billion a month.

So experts will be closely eyeing Ford's cash levels today.

"We expect Ford's cash use to continue relatively unabated through the end of this year and perhaps into 2010," Robert Schulz said in Standard & Poor's report.

Credit Suisse equity analyst Chris Ceraso estimates that Ford burned through $4 billion over the past three months.

"Working capital is the big wild card here," Ceraso said in an April 17 report.

Another threat facing Ford is a GM or Chrysler bankruptcy. A filing by either rival could disrupt Ford's parts suppliers and cause vehicle prices to plummet if thousands of vehicles are liquidated, said Bruce Clark, senior vice president of the corporate finance group for Moody's, a debt rating service.