Welcome to the Daily 5 report for Tuesday, July 29.
If we've learned anything about the management of Ford Motor Co. these last 20 years, it's that it goes to the bank whenever it gets nervous about the future.
So it should come as no surprise that on the eve of what could be a troubling second-quarter report, Ford said it has lined up a $3 billion line of credit. It's a head-scratcher because the automaker holds about $27 billion in cash and $45 billion in liquidity — plenty of funds to withstand a rainy day or two.
But looking back at the Great Recession, Ford and former CEO Alan Mulally avoided the need for a government bailout when they brilliantly lined up $23.4 billion in financing in 2006, before a banking meltdown crashed the economy a few years later. Ford leveraged almost everything as collateral, including the Blue Oval logo.
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Fast-forward nearly 20 years and Ford faces President Donald Trump's tariffs — with delicate negotiations still to come with Canada and Mexico. Ford also continues to grapple with quality problems that will cost at least $570 million in the coming quarter.
As Michael Martinez writes, the automaker's 90 recalls so far this year have set a record and have Ford on pace to lead the industry in U.S. recalls for the fourth time in five years.
Ford won't need to leverage the Blue Oval this time, but the outlook no doubt makes folks nervous in the Glass House. So it's time to go back to the bank — just in case.
Things aren't looking any better at Stellantis after a difficult 2025 first-half report and a cloudy second half on tap. Tariffs will take a $1.4 billion bite out of the second half of 2025. And like Ford, Stellantis could face further challenges if U.S. trade negotiations with Canada and Mexico result in more tariff exposure.
"Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results," new CEO Antonio Filosa said in a statement.
Also in today's report, check out second-quarter earnings coverage for Lithia Motors and Asbury Automotive.
That's it for now. Have a great rest of your day. Click here if you'd like to read this in your browser.
— Philip Nussel, online editor
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