Ford $F goes Canadian looking for huge govt handouts #cd4platform #automotive

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Ford (NYSE:F) is seeking hundreds of millions from both the Ontario and Canadian Governments to retool the Oakville Ontario plant. The idea is to assembly Fords on the new CD4 platform. This will allow the plant to more easily switch production from model to model as they react to marketing demand.

The Ontario and Canadian Government have a history of coughing up this kind of cash. In all honesty some desperate state governors have done the same. Lots of Republicans engaging in socialist style incentives. Big advantage for Oakville is government health care which US states cannot even come close to matching.

Interesting that the US business media did not really focus on the story.

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.

CNBC Ford/GM Arbitrage

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CNBC you got to love them. GM (Stock symbol pending) is coming out with the long-awaited Obama validating IPO. Ford (F) is coming out looking like a successful American Car company. Did that sound right “Successful American Car Company”

Tonight CNBC airs the one hour special “Rebuilding an American Icon”. They just interviewed Chairman Ford on “Power Lunch

The GM IPO will get lots of media attention of course. GM just by happenstance reported a whopping $2 Billion of profits led in a politically correct fashion by operations in North America. Even Robert Lutz vice chairman has chimed in claiming the earnings are on target.

Investments are relative. This is becoming a stock pickers market. Which car company do you favour?  Investor Relations and Public Relations are girding for a major battle. Expect lots of sound and fury.

Investors just remember this. The automotive sector is cyclical.

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.

Special Disclosure: I probably will not be buying into the GM IPO.