Ford's finaglings may not be enough to save it

As if Ford didn't have enough problems, analysts are now saying it may be too little, too late for the Blue Oval. All of the company's current options, such as selling off Land Rover, Aston, Volvo and Jag; teaming up with foreign automakers; and buying back its shares to go private, wouldn't address the core problem with the company, according to analysts.
Standard & Poor's credit analyst Gregg Lemos-Stein said he considers Ford's real problems to be "deteriorating product mix, slipping market share and excess production capacity in North America." Recent 0% financing offers might help a little in the short term, but with so many fatal flaws, it's easy to see why Bill Ford has been trying to reach Carlos Ghosn about considering Ford for an alliance should GM balk.

Losing nearly a billion-and-a-half dollars in the first half of the year, Ford has already announced huge closures and layoffs to take place over the next several years. Let's hope black ink becomes Job #1 at Ford real soon.

[Source: Reuters]

Related posts:

Share This Photo X