The Ford Debt Disaster Continues

Ford (F) produced its SEC 10Q last Friday showing an incredible $166 billion debt divided between its auto division ($25 billion) and financial services division ($140 billion). For a company that no longer earns a profit, and hasn't had consistent earnings for years, this is ominous. This is a $9 billion market cap company with $1.7 billion in equity.

Investors have to date focused on the auto division's inability to sell cars. The rapidly declining credit division should also be a worry. Remember that $140 billion in debt depends on Ford's SUVs and trucks retaining their value; that's what Ford depends on to make good their startling debt. Unfortunately for the car industry, these vehicles have been rapidly losing their worth.