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Why Paccar Inc. Stock Slid 16.1% in October Despite Solid Quarterly Numbers The Motley Fool / November 12, 2018 The truck manufacturer is benefiting from strong trucking markets, so what's worrying investors? What happened Paccar Inc. (NASDAQ:PCAR) was on its way to a strong year when October happened. Shares of Paccar [and Navistar] got caught in the broader industrials sell-off, and even better-than-expected quarterly earnings backed by exceptionally strong trucking markets couldn't help investors shrug off their pessimism. Paccar stock finally ended October down 16.1%, according to data provided by S&P Global Market Intelligence, and has barely budged so far this month. So what Orders for heavy-duty Class 8 trucks in North America are sitting at record highs, with October likely to be the eighth straight month of industry orders of more than 40,000 units, according to research firm FTR. As a leading truck manufacturer in the U.S., Paccar is making the most of the good times, as evidenced by its third-quarter numbers that were released on Oct. 23. In Q3, Paccar's production hit record highs, revenue climbed 14% to $5.76 billion, and net income soared 35% to $545.3 million. While the company didn't give out its backlog value, CEO Ron Armstrong revealed that Class 8 orders for Paccar's flagship truck brands, Kenworth and Peterbilt, more than doubled during the first nine months of the year compared with the year-ago period. Meanwhile, in Europe, Paccar's DAF brand achieved record market share of 16.6% in the above-16-tonne market, up from 15.1% same quarter last year. Given those numbers, it appears fears of escalating trade tensions between the U.S. and China and concerns about the trucking cycle peaking triggered a sell-off in Paccar shares in October. Now what While we can't say much about how long the trade war will last or how badly it'll affect Paccar, the trucking markets remain on a strong footing. Barely days ago, FTR raised its forecast for 2019 North American industry Class 8 truck shipments, as it foresees robust freight growth. Paccar, for its part, is chalking out plans to increase capital expenditures in 2019 by nearly 20% of the projected 2018 midpoint of $450 billion on new truck models, diesel and powertrain technologies, and capacity expansion for both trucks and parts. So if not for the broader market sell-off, October would've likely been a smoother ride for Paccar.

David Shepardson, Reuters / November 12, 2018 WASHINGTON - The U.S. Environmental Protection Agency on Monday will announce plans to propose new rules to significantly decrease emissions of smog-forming nitrogen oxide from diesel highway heavy-duty trucks and engines, an agency official said. Industry groups and state environmental officials have urged the EPA to set new nationwide rules as the state of California has been moving forward with plans to set new state emissions limits. California also wants nationwide rules in part because more than half of all trucks delivering goods in the state are registered in other states. The effort to impose a new regulatory limit by EPA comes as the Trump administration has generally touted its efforts to eliminate regulations. But the effort on nitrogen oxide (NOx) is backed by industry, which wants to avoid a patchwork of federal and state standards, the official said. In December 2016, the Obama-led EPA said in response to petitions to impose new standards that it acknowledged "a need for additional NOx reductions from on-highway heavy-duty engines, particularly in areas of the country with elevated levels of air pollution" and said it planned to propose new rules that could begin in the 2024 model year. Another administration official said Monday the new proposed emissions rules may not be announced until 2020.

My mindset of GM is stuck in the 1970s thru 1990s, when they blatantly designed cars to wear out, forcing customers back to the showroom. Toyota and Honda gave the BIG 3 a wake-up call with quality and durability.

Revived credit business helps GM finance its future Hannah Lutz & Michael Wayland, Automotive News / November 12, 2018 DETROIT — A business line General Motors pioneered nearly a century ago is expected to begin significantly contributing to the company's future, providing a fount of profits to fund investments in emerging technologies such as electrified and autonomous vehicles. GM Financial, the company's captive auto financing arm, paid GM a $375 million dividend on Oct. 30 that will be reflected in the GM's fourth-quarter earnings. It's the first in a series of annual payouts GM Financial will pay GM until it consistently holds 50 percent of GM retail sales penetration in the U.S., which is expected to occur in the early 2020s. The dividend, according to GM CFO Dhivya Suryadevara, will strengthen long-term cash generation and free cash flow — targeted to be $4 billion to end 2018. "Combined with the ongoing GM Financial dividend and our focus on cost reduction, we see significant opportunity to improve cash generation," she told analysts when discussing third-quarter earnings on Oct. 31. "We are confident in the opportunity ahead of us and continue to expect strong performance over the short term as well as the long term." GM Financial refers to its leverage ratio — measured as the ratio of net earning assets to tangible net worth — to determine how and when to send capital back to GM. 'True captive' In 2015, announced a target to more than double pretax earnings of $803 million from 2014 to as much as $2 billion for GM Financial by 2018. Through the first nine months of this year, it was at $1.48 billion. Suryadevara said earnings for GM Financial will experience "traditional seasonality" in the fourth quarter, but the business will still report "significant" profit growth for the year compared to 2017. Financing 50 percent of GM's retail sales in the U.S. has been an important goal in delivering on GM Financial's value propositions, said GM Financial CFO Susan Sheffield. "We talk about loyalty and retention and are a true captive at those levels," she told Automotive News this month. GM has a long, complex and pioneering history with captive financing firms. It established General Motors Acceptance Corp. as the industry's first captive finance company in 1919 — decades ahead of others such as Ford Motor Co. The business helped GM weather difficult times in its core automotive business and later diversified into other financial services, such as insurance and mortgages. However, GM sold its majority stake in the company in 2006 in a scramble to raise cash. It further reduced its stake in 2009, as part of its government bailout and bankruptcy restructuring. The rebranded business became the independent bank Ally Financial, which continued to provide financing to GM dealers and customers. But GM didn't stay out of the financing game for long. In 2010, it formed GM Financial with the acquisition of subprime lender AmeriCredit and has expanded the business by adding services such as prime and floorplan lending and taking or acquiring business from Ally. In 2015, GM notified Ally that it would steer all of its lease subsidies for its brands in the U.S. to GM Financial, instead of distributing them among Ally, GM Financial and, to a lesser extent, U.S. Bank. The move gives GM more control of its customer data and a better shot at keeping its off-lease customers. Ally also sold GM many of its international business operations such as China, Europe, South America and Mexico starting in 2013 — the same year it sold its remaining stake in Ally. Suryadevara said GM expects the financial arm to continue doing well despite challenges such as higher interest rates. "We're, again, continuing to risk-manage this business, and this is going to be a strong contributor to earnings as we move forward," she said. While the unit's financial results have improved — a net income of $441 million in the third quarter vs. $51.3 million eight years ago — GM Financial still has operational and reputation hurdles to clear. It ranked below average on the J.D. Power 2018 U.S. Dealer Financing Satisfaction Study, which followed as many as 2.5 million GM Financial customers affected by problems that followed a systemwide technology upgrade in late December. From January through May, the lender stopped reporting customers' payment information to credit bureaus. The reporting halt saved some past-due customers from the consequences of late payments but customers applying for other types of loans were left in limbo. The company quickly resolved several problems including customers who were overcharged or undercharged, but the effort was further complicated by intermittent phone outages. "Frankly, we didn't have the capacity to grow to the size we expect to grow to in the coming years," Bob Beatty, executive vice president of customer experience, told Automotive News in January. . GM Financial vs. Ford Credit General Motors beat Ford by decades in establishing a captive finance company, but today Ford Motor Credit is more profitable: FORD CREDIT GM FINANCIAL Q3 9 mos Q3 9 mos Revenue $3 billion $8.9 billion $3.5 billion $10.4 billion Pretax profit $678 million $2 billion $498 million $1.5 billion Net income $518 million $1.7 billion $441 million $1.3 billion . Heir to GMAC General Motors has a long and recently complex history with auto financing. 1919: GM creates General Motors Acceptance Corp. It becomes the model for modern captive finance companies. Ford follows 40 years later with Ford Motor Credit Co. 1980s-90s: GMAC expands into mortgages and corporate finance. 2006: GM sells a majority stake in GMAC to raise cash. 2009: GM further reduces its stake in GMAC, as both companies receive government bailouts. 2010: GM purchases subprime lender AmeriCredit and turns it into GM Financial; GMAC is renamed Ally Financial. 2013: GM sells its remaining ownership in Ally, and buys many of its international operations. 2014: Ally goes public at IPO price of $25 a share. 2018: GM Financial pays first dividend of $375 million to GM.

As does the Army's superb transportation museum at Fort Eustis. http://www.transportation.army.mil/museum/wwi/index.html

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The Liberty truck was crude, but an attempt in the right direction. The US Army's next step, the "Standard Fleet", was huge leap ahead that resulted in cutting edge trucks superior to civilian models. https://www.bigmacktrucks.com/topic/41596-when-the-us-army-became-a-truck-manufacturer-–-the-qmc-standard-fleet/?tab=comments#comment-302225

A good read....I thought. https://edition.cnn.com/2018/11/10/us/ww2-reunion-us-german-veterans/index.html

What did your Mack brand sales person or service manager say when you called them???

The key initial targeted use of AI is military, because he with the most advanced AI can rule the battlefield. I'm willing to bet that AI development is 10 to 15 years more advanced than we're led to believe.

The French know how to do a good protest. No guns, knives or cars running over people (Charlottesville), and the police have a good time. .

Most auto and truckmakers today hire targeting diversity, not experience. Volvo is a textbook example of that.

Artificial Intelligence frightens me. .

Navistar is out of the gates loudly on the CV Series. Huge potential here. A lot of medium fleets can now standardize on one truck brand down to Class 4. Since the Silverado launch, one hasn't heard a word from Chevrolet (I again say GM commercial should be under the GMC brand). Shall we accept bets on how long it takes Ford and Dodge to launch tilt-hood Class 4/5 models? Speaking of Ford, removing a cab to R&R an engine is absurd (another argument for low-cab-forward COE design).

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I see "mega dealer" Vanguard Truck Centers bought St. Louis Mack in 2013. Click on locations......https://vanguardtrucks.com/ Alike Caterpillar, the day is coming when there will be 15 or less Mack brand distributor principals nationwide. At distributor meetings, Volvo will save on catering.

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International intros ‘upfit friendly’ CV Series chassis cab Trailer-Body Builders / November 9, 2018 OEM also looking to attract small businesses, larger fleets that already are customers of its MV, LT Series trucks CHICAGO IL. International Truck recently unveiled its CV Series of trucks, calling itself “the only” OEM to offer Class 4-5 trucks that are designed, distributed and supported by a manufacturer specializing in commercial vehicles. The new truck suits various body types, which International, a unit of Navistar Inc, is targeting for small businesses, growing fleets and current customers of the company’s larger equipment. “To date, there’s only been two competitors in this market for the past several years: Ford and Ram. With Ford dominating this segment for quite some time,” said Michael Cancelliere, Navistar’s president of truck and parts. “We’ve designed, built and tested the CV Series to deliver the commercial-grade power, reliability and practicality that growing businesses require, along with the comfort, safety features and easy drivability that drivers appreciate. And we are backing it up with the expertise of the International dealer network, the only network in this category 100% dedicated to commercial vehicles.” The CV Series’ focus on growing businesses is reflected in the vehicle’s commercial-grade features, which include a gear-driven transfer case, a high-strength, low-alloy steel frame rail and a painted chassis for enhanced longevity and corrosion resistance. The OEM also is looking to attract larger fleets that already are customers of International’s MV Series medium-duty trucks and the heavy-duty LT Series. “They want to have a one-stop shop,” said David Majors, Navistar’s vice president of product development. “They already have a relationship with the dealer in their area. So we think there is a huge opportunity there. Majors said those customers of International’s larger trucks have already shown interest in the CV Series. “When we were developing the vehicle we actually brought in people like Miller, Jerr-Dan (and) Altec to help us when we were defining the vehicle requirements,” Majors said. Earlier this year, Chevrolet also re-entered the medium-duty market with Class 4-6 editions of its Silverado series. Those trucks were developed in conjunction with Navistar thanks to a partnership with GM. International had discontinued its last Classes 4-5 TerraStar model in 2015. “We had a couple opportunities between the two of us,” Majors said of the business arrangement between Navistar and GM. “They had a cab and an engine that would work in the segment. We had some open capacity in our Springfield, OH, plant. So putting that together and looking at the market, we really thought that between the two of us, we could actually make a difference in the market.” That business arrangement is shown off in the automotive-like interior. Multiple infotainment options are available, including an 8-inch color touchscreen with navigation and, for the first time in an International truck, Apple CarPlay and Android Auto. International says it offers the segment’s only optional air ride suspension with an engine-mounted compressor, which can be used to adjust the height and provide a smooth ride for cargo protection and crew comfort. “What we brought to the party from the Navistar side is really the commercial vehicle,” Majors said, noting that things such as the steps are commercial-grade, stamped metal—compared to the plastic steps typically seen on other trucks in this segment. “You get a muddy boot on that step you’re going to be fine,” Majors said, pointing to a CV Series truck. “You get it one of their trucks, you’re going to slide around a bit. So those are the little things we do because we’ve been in the business for so long.” For faster, more convenient service, the CV Series includes a commercial-style forward-tilting hood, which provides easy access to the engine and to routine maintenance points. Under that hood is International’s diesel 6.6-liter, 350-horsepower engine with 700 lb-ft of torque. Equipped with that engine and two Allison transmission options, the CV is capable of handling up to a maximum GCWR of 37,500 lbs. “The CV Series has been compared to a field office with perks,” Cancelliere said. “Our philosophy is that driver comfort is critical to get the job done smoothly and efficiently, and the CV Series brings that philosophy to life.” The truck was tested in extreme environments, including 40 degrees below zero weather in Fairbanks AK, and 115 degrees in Apache AZ, as well as high-altitude testing at 12,000 feet in Loveland Pass CO. “The CV Series features a long list of heavy-duty details that would only be found on a truck designed by commercial truck engineers,” Majors said during the unveiling of the truck in front of hundreds of customers and dealers. “Our engineers had one mission: to create the toughest, most capable, most upfit-friendly Class 4 and 5 truck to be found at any work site.” The CV Series has the ability to accommodate a wide range of specialized body types. Straight frame rails with no rivets on the top flange provide a clean area from cab to axle, making it easy to mount bodies for virtually any commercial-grade application. Like other International trucks, the CV Series is outfitted with HuckBolt chassis fasteners that provide consistently superior clamping force without re-torquing and won’t come loose even in extreme environments. Accommodating the configuration options required by different bodies, the CV Series offers a dual battery box mounted under the cab. The CV Series also includes multiple fuel tank options, optional exhaust outlets to suit the vocation and body and multiple wheelbase options that can suit almost any application. CV Series customers also have access to the same Truck Specialty Center expertise as all International customers. At these centers, which are fully owned and operated by International Truck, experts provide quick, efficient and cost-effective custom engineering solutions. “The CV Series is the only truck in the segment that can take advantage of this level of customization,” Cancelliere said. “No one has more experience at body integration than International Truck.” The International dealer network’s more than 700 service locations feature more than 7,600 ASE-certified commercial diesel-trained technicians in the US and more than 1,900 in Canada—a critical advantage over automotive-based service networks. “Our network is committed to providing the expertise needed to keep your business moving,” Cancelliere said. “No matter the location, if a customer needs service, help is likely to be nearby.”

International launches CV Series James Menzies, Truck News / November 8, 2018 CHICAGO, Ill. – International is back in the Class 4/5 segment, with the new CV Series it co-designed with GM. The company unveiled the new model during an event attended by about 500 customers, dealers and media here Nov. 7. It believes customers will benefit from International’s expansive, commercial vehicle-focused dealer network. Moving from start-up to scale-up was the theme behind the launch. “When a start-up business moves to the scale-up stage, the International CV Series provides a truck that will take their business to the next level,” said Michael Cancelliere, Navistar’s president, truck and parts. “We’ve designed, built and tested the CV Series to deliver the commercial-grade power, reliability and practicality that growing businesses require, along with the comfort, safety features and easy drivability that drivers appreciate. And we are backing it up with the expertise of the International dealer network, the only network in this category 100% dedicated to commercial vehicles.” The Class 4/5 segment represents a market of about 40,000 units per year. “These customers operate trucks in unique industries and vocations – everything from towing to landscape, construction to repair services,” Cancelliere said. “To these companies, the truck is an integral part of how they service their customers.” Ford has dominated the segment, but Cancelliere said customers were looking for a new choice. “Customers told us they were ready for a different solution, for a new alternative. They no longer want to do business with automotive dealers that dabble in trucks,” he said. “These customers need a brand that focuses on uptime with service capabilities and dealership hours that meet their needs. They want more than a truck, they want a truck commercial partner to help take their business from start-up to scale-up.” David Majors, vice-president of product development, said the truck was built to handle tough commercial applications. The chassis features 50,000 psi frame rails, and the entire chassis is factory-painted for corrosion resistance. A gear-driven transfer case provides better strength than a chain-driven design, he said. The truck features an air-ride suspension and is powered by a 6.6-liter engine that puts out 350 hp and 740 lb.-ft. of torque. Two Allison transmissions are available. The forward-tilting hood allows easy access to the engine compartment. Majors said body integration will be seamless. “No one has more experience with body integration than International Trucks,” he said. The cab is huck-bolted, with bolts that won’t come loose in extreme conditions. The interior features an automotive design, featuring the GM cab and interior. The truck can be ordered with Apple Car Play and a back-up camera. Regular cab and crew cab configurations are available, in 4×2 and 4×4 drive setups. Customers can choose between three fuel tank options ranging from 25 to 65 gallons. Gross combination weight ratings (GCWR) run to 37,500 lbs. “The CV Series features a long list of heavy-duty details that would only be found on a truck designed by commercial truck engineers,” said Majors. “Our engineers had one mission: to create the toughest, most capable, most upfit-friendly Class 4 and 5 truck to be found at any work site.” On the track Initial test drives were offered to media on two tracks set up in the Soldier Field parking lot. Trucks I drove include a CV515 with set-forward axle in a 4×2 configuration. It was decked out with the Diamond interior and had an Allison 2700 RDS automatic transmission mated to the International 6.6 engine with 350 hp and 700 lb.-ft. The other one I spent some time behind the wheel of was also a CV515 with similar spec’s, but in a 4x4 configuration. It was fitted with an empty dump body but had the same powertrain spec’s. The trucks handled well, with responsive steering and good visibility. The turning radius was tight and acceleration was impressive. The cab was also quiet, and the interior was comfortable and clearly automotive-inspired. The truck will be comfortable to operate for those who expect an automotive driving experience, while the truck is versatile and durable enough to handle a wide range of applications. The real advantage in this segment, however, will be International’s ability to offer true commercial vehicle support and expertise to customers. .

VW Considers Investing in Ford-Backed Autonomous Unit Argo Christoph Rauwald & Keith Naughton, Bloomberg / November 9, 2018 Volkswagen and Ford are nearing a framework agreement to join forces on electric and self-driving vehicles, capital-intensive areas that are reshaping the auto industry and straining carmakers’ finances across the globe. As part of the pact, VW may invest in Ford’s self-driving partner Argo AI. VW also is poised to share electric-vehicle technology, with Ford piggybacking onto the tens of billions of dollars that the German giant has committed to battery-powered autos. The possible investment in Argo is significant, as it could accelerate VW and Ford’s self-driving efforts -- a costly but crucially important element of the auto industry’s future. Both carmakers have been dogged by the perception they’re lagging behind in developing the technology, and cooperation would allow them to share costs and potentially catch up faster. Ford shares rallied on the news, jumping as much as 3.6 percent to $9.80 as of 10 a.m. Friday in New York. Talks between VW and Ford have been constructive since the companies publicized them five months ago, and might firm up by the end of this year or early 2019. The two have said they don’t plan a cross-shareholding arrangement like global partners Nissan Motor Co. and Renault SA. VW refused to comment. Jennifer Flake, a Ford spokeswoman, said the company is talking with VW about potential collaboration across multiple areas and that it’s premature to share additional details now. Broad Discussions VW and Ford said in June that they were considering a strategic alliance focused on a range of commercial vehicles. Bloomberg News reported last month that the discussions had broadened to include potential collaborations on autonomous driving and to develop and build vehicles for one another. “We’re having a very broad set of discussions about how we can help each other around the world,” Bob Shanks, Ford’s chief financial officer, said in an interview last month. “Collaboration isn’t being limited in any way whatsoever.” Self-driving cars are expected to upend the transportation industry and become a business worth $7 trillion by mid-century, according to a report last year by Intel Corp. and Strategy Analytics. Automakers who get it right will be on track to more than double the industry’s meager profit margins and build a more prosperous future. But those who fail may not have a future at all. Open to Investment Together with its self-driving partner Argo AI, Ford has said it’s open to outside investment in its autonomous efforts by a second automaker. The talks to bring on VW are progressing well and have the potential to create a global competitor in the self-driving race, one person familiar with the discussions said. Having two major automaker customers would put Argo on similar footing with Cruise Automation, General Motor Co.’s autonomous unit that last month took on a $2.75 billion investment from Honda Motor Co. Ford has been struggling to reverse losses in markets including Europe and South America. It’s also in talks with Mahindra & Mahindra Ltd. to broaden an alliance that began to develop models for India and other emerging markets, including sport utility vehicles and electric cars. VW Chief Executive Officer Herbert Diess confirmed in a recent interview that talks with Ford could involve licensing the company’s new electric-car technology, dubbed MEB. VW plans to roll out the first fully-electric vehicles underpinned by this technology in 2020, starting with the I.D. Neo hatchback in Europe. The deliberations also include VW building a compact panel van about the size of its Caddy model for Ford, while the U.S. manufacturer could produce a successor to VW’s T6 van at its low-cost factory in Turkey to improve returns. In South America, the companies could bundle production of VW’s Amarok and Ford’s Ranger pickups at the German company’s site in Pacheco, Argentina, in a move to share cost. Urban Deliveries Joining forces would allow VW and Ford to gain critical scale in a commercial-vehicle market that’s been boosted by growth in deliveries to online shoppers. At the same time, the segment faces tightening emission rules across the globe: Some major cities are considering allowing only electric vehicles into downtown areas. Combined annual sales of roughly 1.1 million light commercial vehicles would put Ford and VW on par with other alliances like the tie-up between Daimler, Renault and Nissan. For VW’s light commercial-vehicle unit based in Hanover, the Ford cooperation could be key to its future strategy. The division has been struggling to expand outside Europe and South America, partly due to high manufacturing costs for some vehicles in Germany. With the Traton AG heavy-truck unit being separated to prepare a for possible share sale, the light commercial-vehicle operations risk being folded into the much-larger VW cars division if the Ford cooperation doesn’t generate the anticipated benefits in coming years.

For Ford, echos of 2005 as debt, outlook weigh on investors Molly Smith, Bloomberg / November 9, 2018 Ford Motor Co. could be close to getting junked again. That's what the bond market is saying. The company's debt is trading like it's speculative grade, as investors worry about how higher steel tariffs and slowing sales will weigh on its profits. Ford is rated one step above junk by Moody's Investors Service and two steps by S&P Global Ratings. Any downgrade could be painful for bond investors, and for the company. The automaker has more than $150 billion of short- and long-term debt globally, and is one of the 15 biggest corporate bond issuers in the U.S. outside of the financial sector. In 2005, Ford was cut to junk along with General Motors Co. Bob Shanks, Ford's CFO, said on an earnings call last month that the company is committed to maintaining its investment-grade ratings, and doesn't intend to lose that status again. The company is "moving with a sense of urgency and taking proactive steps to redesign and restructure the business," and over time 'the market will recognize our progress," Ford spokesman Brad Carroll said. But debt investors are skeptical. The extra yield that money managers get for holding Ford's 4.346 percent bonds due 2026 rather than similar Treasuries jumped to levels typical of high-yield companies. The cost of protecting Ford's debt against default using credit derivatives rose in October to the highest levels since 2012 before settling down again. Moody's downgraded the company in August to one level above junk, and said further cuts are possible in the medium term. "There's a better chance than not it ends up in high yield," said Henry Peabody, a portfolio manager at Eaton Vance Corp. in Boston. "It's a combination of a fairly weak strategic position, less than ideal strategic decisions over last handful of years, a smattering of overconfidence and where we're at in the credit cycle." Ford is fighting a "multiple-front war," Peabody said, citing the company's slowing sales growth in China and higher costs in the U.S. from global trade disputes. Ford fared better during the financial crisis than GM and the Chrysler Group, now part of Fiat Chrysler Automobiles NV, by avoiding bankruptcy and the government-backed bailouts that its competitors received. But losing its investment-grade status forced Ford to finance itself on a secured basis, essentially putting everything from its inventory to the rights to its oval blue logo in hock. When Ford reclaimed its investment-grade ratings in 2012, after it cut debt and profits jumped, Chairman Bill Ford announced the upgrade to employees on the public-address system normally used for fire drills at Ford's Dearborn, Mich., headquarters. "When we pledged the blue oval it was enormously emotional for me personally and for my family, because we weren't just pledging an asset, we were pledging our heritage," Ford said in May 2012. "To get that back feels wonderful and this is one of the best days I can remember." New trouble Now the company is facing difficulty again. Ford told investors in July it is launching an up to five year overhaul that could cost it $11 billion, as it focuses on higher margin products such as trucks, crossovers and SUVs and exits segments that include sedans. However, it has provided scant details on the restructuring plan, and has yet to reschedule an investor meeting that was originally set for September. Struggling operations in Asia and Europe prompted Ford to cut its 2018 profit forecast. The company posted about a 50 percent decline in earnings for the second quarter, followed by a nearly 40 percent decline in the third quarter. Its shares last month fell to their lowest level since 2009. Ford's bonds trade at risk premiums similar to those of junk-rated companies in the auto industry, such as Allison Transmission Holdings Inc. and Dana Inc., and have since Moody's cut the company to a step above junk in late August, according to Bloomberg Intelligence research. The bonds have rallied recently, but still trade at risk premiums higher than Fiat Chrysler, which is rated junk, and GM, signaling investors believe Ford is a bigger credit risk. One source of support as the company tries to fix itself is its cash position: Ford had around $35 billion of liquidity as of Sept. 30. That's given comfort to credit raters, who have noted it as a positive. Earnings margins and operational challenges outside the U.S. are top concerns to Moody's, which rates Ford Baa3. S&P and Fitch Ratings both rate the company one step higher at BBB. More cuts? Ford would need to be cut to high yield by two ratings firms before it fell out of the investment-grade index. Many money managers don't see that as likely, even if Moody's decides to cut the company to speculative-grade, said Joel Levington, a former S&P director and now head of credit research for Bloomberg Intelligence. Ford has options for avoiding downgrades, Levington said, including cutting its dividend -- a step the company has insisted it won't take -- or selling less profitable units. "To get to the place where you're talking about two rating agencies going to high-yield, you're saying not only is the company a basket case, but that it isn't doing anything to stave off either of those actions," Levington said. "I wouldn't assign a high probability around that." To some money managers, current trading levels represent an attractive buying opportunity. The company's bonds pay high yields and the credit quality is relatively high, said Matt Brill, senior portfolio manager at Invesco. "Ford generates a lot of cash flow and they have so much more flexibility than they did a decade ago," with regard to costs, he said. But bond analysts caution that the debt is by no means a slam-dunk investment. Carmakers are cyclical businesses, and as the Federal Reserve raises rates, increasing financing costs for consumers, vehicle sales aren't likely to improve much, if at all, from here. "Autos were always the light that everyone's looked to in this post-recession era," said Jody Lurie, a corporate credit analyst at Janney Montgomery Scott. "I don't think investors are looking at them on that momentum story that they once had, or looking at them as the beacon of hope that they once were."

Go drive one for yourself. The only negative will be that afterwards, you'll never want to drive anything else.