Ford Dealerships Closing/New York
#11
03-05-2007, 05:55 AM
Re: Ford Dealerships Closing/New York
Ford doesn't need to go out of business. It just has to file for bankruptcy.
When that happens, all liabilities are voided out by the court, and that includes all warranty liabilities. There will be no one to transfer the warranty to, since Ford could still be in operation. It would just be operating under bankruptcy protection.
Just take a look at K-Mart. People (rather dumb people) were even still buying their stock after they filled for bankruptcy, only to finally realize later that the stock was totally worthless. The bankruptcy voided out all the old stock, and when K-Mart emerged from bankruptcy, they issued/sold all new stock.
If the courts don't care about stock holders, they clearly will not care about warranty holders.
BTW, filing for bankruptcy also voids out all union contracts, and all benefit liabilities (like pension under funding). I am sure that makes it somewhat tempting for Ford, since those are the "problems" it claims are keeping it from competing successfully.
When that happens, all liabilities are voided out by the court, and that includes all warranty liabilities. There will be no one to transfer the warranty to, since Ford could still be in operation. It would just be operating under bankruptcy protection.
Just take a look at K-Mart. People (rather dumb people) were even still buying their stock after they filled for bankruptcy, only to finally realize later that the stock was totally worthless. The bankruptcy voided out all the old stock, and when K-Mart emerged from bankruptcy, they issued/sold all new stock.
If the courts don't care about stock holders, they clearly will not care about warranty holders.
BTW, filing for bankruptcy also voids out all union contracts, and all benefit liabilities (like pension under funding). I am sure that makes it somewhat tempting for Ford, since those are the "problems" it claims are keeping it from competing successfully.
When several airlines filed for bankruptcy (United for example if I remember right) their tickets were still valid. In fact I think I remember they even arranged with other carriers to carry passengers for some flights.
#12
03-05-2007, 06:48 AM
Re: Ford Dealerships Closing/New York
I bought a ford taurus in 1990 and got a great deal with in a few months the dealership folded. I had it until 1998 then I bought a honda odessey because there werent any hybrids available. Now I put down 500 dollars on a stupid ford 4wheel drive escape 2008 I thought it was supposed to be safer. The highlander looks like my 1998 oddessey except it's a little bigger. I should have bought that instead It just seemed too big They told me in 10 weeks I should get my 2008 ford escape. This stinks!
#13
03-05-2007, 10:06 AM
Re: Ford Dealerships Closing/New York
I'm not sure where "a" connects to "b." If you ordered a custom car, i.e. they didn't have what you wanted on the lot, there will be a substantial delay.
That said, we shopped around a bit, at the Ford Dealerships in the area, and found a lot with the car we wanted, with everything we wanted in it.
FWIW, when the 2008 shows up, I think you will be pleased at it. Ours runs beautifully, and right now, we are averaging somewhere around 450 mi a tank, somewhat around the promised 30-36 mpg.
To place that in perspective, my 1996 Saturn SL2, a well known fuel efficient car, could only manage 270 miles to the tank, and around 25-27 mpg. For its size, the Escape hybrid is top of the line, imho.
That said, we shopped around a bit, at the Ford Dealerships in the area, and found a lot with the car we wanted, with everything we wanted in it.
FWIW, when the 2008 shows up, I think you will be pleased at it. Ours runs beautifully, and right now, we are averaging somewhere around 450 mi a tank, somewhat around the promised 30-36 mpg.
To place that in perspective, my 1996 Saturn SL2, a well known fuel efficient car, could only manage 270 miles to the tank, and around 25-27 mpg. For its size, the Escape hybrid is top of the line, imho.
#16
03-05-2007, 10:18 PM
Re: Ford Dealerships Closing/New York
If they are bought out the warranties will be transferrable I would suspect.
Frankly I think everyone is very much over playing Ford's impending doom. They are in trouble, but I find it difficult to believe the Feds would completely let them go under. They bailed out Chrysler.
Frankly I think everyone is very much over playing Ford's impending doom. They are in trouble, but I find it difficult to believe the Feds would completely let them go under. They bailed out Chrysler.
#17
03-06-2007, 05:54 AM
Re: Ford Dealerships Closing/New York
I didn't say it was the RIGHT or WRONG thing to do.... just that they would probably do it.
#18
03-06-2007, 06:57 AM
Re: Ford Dealerships Closing/New York
I sure hope that a bankruptcy judge feels the same way as you all do, and puts Ford's warranty obligations ahead of its other obligations (taxes, creditors, pension, union, etc).
#19
03-06-2007, 08:18 AM
Re: Ford Dealerships Closing/New York
IF Ford goes bankrupt it will be reorganizational not liquidation. They will be in business as usual. It will allow them to restructure and keep creditors at bay. Warranties and pension plans will be as usual. Google Oldsmobile warranty.
Last edited by Jerry&Natalie; 03-06-2007 at 10:58 AM.
#20
03-07-2007, 09:32 AM
Re: Ford Dealerships Closing/New York
The mistake you are making is that warranties aren't even in the same class as taxes, creditors, pension, etc. Even if I cancel warranties it makes NO DIFFERENCE ON THEIR BALANCE sheet for debts! It doesn't help them get out of debt which is what a bankruptcy is for. Ford doesn't owe us any money for our warranties... they have no cash value. They essentially are a future operating expense. What that means is the judge won't treat them like those other obligations. it doesn't guarantee they won't be cancelled per se... but its not "placing them ahead of their other obligations" to keep them valid either. They simply aren't equivalent.
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