Why is FORD'S stock at $8 per share?

[Braski]

Personally I think it's lack of vision. Cutting all there small cars wss a big no no. People who buy cheap cars and have a good experience with brand and dealer buy a more expensive model the next time around. The new f-150 is not the best looking truck being offered to say the least. Personally I think both the mustang and f-150 looks went backwards with the refresh. If the 4 door mustang is legit it might be the death of Ford! I believe the new CEO will be looking for another new JOB very soon!

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[Gaglug]

American consumers don't want small cars. Compact/subcompact car sales for the entire US market are down something crazy like 10%-20%. You can't stay in business with a market shrinking that badly. Ford had to jettison the dying sedan lines to keep them from dragging the whole company down.

As far as the refresh being good or bad, I really like the Mustang refresh. I think it looks way better after the refresh than before. As far as the truck refresh...I don't care about trucks anymore than I care about what my neighbor's dog puked up in the yard so...whatever.

 

[sdiver68]

Ford does just fine in North America. Worldwide, not so much. Also, theres still a lot of skepticism about the CEO.

 

[Shadetree43]

The public's perspective of corporate leadership's vision.

 

[Fatguy]

Boring cars and lack of quality control. Similar to their situation in the 1980s before they shook the world with the Taurus. Back in the day that car was like a rolling space craft on wheels. More followed and that momentum lasted till now.


Funny that they just killed the Taurus...


With the leak of the four door Mustang, expect the stock to keep falling.

 

[Condor1970]

Boring cars and lack of quality control. Similar to their situation in the 1980s before they shook the world with the Taurus. Back in the day that car was like a rolling space craft on wheels. More followed and that momentum lasted till now.

Funny that they just killed the Taurus...

I think they killed the Taurus for 2 reasons.

1. Not enough sales.

2. They apparently are planning a 4-door Mustang to compete with Audi A7 and Porsche Panamera. So says the 6g article on the homepage.

Gotta admit, a turbo'd 4-door Mustang family sized sedan would be pretty cool. Not sure I'd want one though. Definitely an upper middle to high class sales item.

 

[Fatguy]

I think they killed the Taurus for 2 reasons.

1. Not enough sales.

2. They apparently are planning a 4-door Mustang to compete with Audi A7 and Porsche Panamera. So says the 6g article on the homepage.

Gotta admit, a turbo'd 4-door Mustang family sized sedan would be pretty cool. Not sure I'd want one though. Definitely an upper middle to high class sales item.

I had to add the four door Stang quip to my post after you quoted it. But if they do make it that company is in big trouble. Zero excitement.

EV Mustang is...

 

[DarthMalice]

Because they keep floating stupid ass ideas like 4 door and SUV mustangs.

 

[fiveoboy01]

Gotta admit, a turbo'd 4-door Mustang family sized sedan would be pretty cool. Not sure I'd want one though. Definitely an upper middle to high class sales item.

They couldn't sell the Taurus(and it's SHO high output cousin) - what makes you think they'll sell the same car with a different name?

 

[Notagain]

LOLOLOLOLOLOL

Maybe their stock is so cheap right because people are tired of waiting for the GT500........

And the whole "lets kill off nearly all the cars" isnt a very brilliant idea either.

Neither is not sending the Ranger Raptor to the US market.

 

[rvlyssup]

A none car guy for a CEO...Hackett is below a clueless bean counter wanna-be pencil pusher.

 

[growler]

1 office furniture ceo. dumb by a multitude of 10..
2) killing ranger
3) killing bronco
4) have you seen a ford edge?....5% less stupid looking than nissan cube 10% less ugly than Pontiac Aztec
5)sinking billions into the pipedream that is autonomous driving unless you live in the desert
6)too long to correct killing ranger/bronco/gt500
7)really really dumb quality control issues.

 

[Cobra Jet]

Ford stock is the way it is because of the Ford family (fact). It’s been that way for MANY years and the family has influence and control over what happens with the stock, even though they do not own as high of a percentage of the stock as they had in the past.

Here a small blurb from 2010 for the misinformed or for those who don’t truly know the history of the Ford family:

The family’s super-voting rights were established long before Ford went public in 1956. In the mid 1930s, Henry Ford and his son, Edsel, set up the two-class structure as part of their estate planning: the charitable Ford Foundation received most of the shares, but they kept a small block of Class B shares that had voting rights, thus assuring family control. Two decades later, when the Foundation pushed for a public stock offering, the family kept its 12 % ownership, but insisted on 40% voting control.

How did they wind up with just 2% today? The dilution happened gradually at first, but accelerated over the last decade. In 2000, shortly after Bill Ford became chairman, the company underwent a complex recapitalization that included a $10 billion special dividend and the issuance of some 600 million new common shares. The move diluted the family's holdings from 5.9% to 3.9% at the time, but cemented their grip on the company by protecting their Class B stock from dilution.

Then, in 2006, as it tried to mount a turnaround, Ford began a series of efforts to raise capital, including convertible debt offers and the issuance of new stock and warrants. Ford began printing stock certificates faster than the U.S. government prints money: 286 million new shares in 2007, 217 million shares the following year and 925 million shares in 2009. This week, Ford issued another 274 million common shares as part of a $1.9 billion debt conversion. As the number of outstanding shares increased, the family's relative stake declined.

Today, 86 extended family members hold all 71 million Class B shares, plus a negligible amount of common stock. Ford's total common shares outstanding, including the Class B shares, is approximately 3.8 billion.

Here’s another fun Ford fact for those who don’t know...
Ford and Firestone are family....literally.

 

[BmacIL]

It's actually pretty simple. Lack of vision and lack of execution of all the bologna being spewed. What does the corktown office and train station mean to prospective investors? Jack sh!t. They are planning on hybridizing and full electrifying everything without thinking about why and if it'll sell well. They're getting rid of low margin cars for potentially significantly negative margin hybrid crossovers, SUVs and trucks, thinking people will buy these far more expensive options over their competitors cars when gas prices shoot up. It's ludicrous.
Also, no one in charge of key, higher margin products (cough Bronco) understands what the hell the product should be, and how to make them actually sell for high margins. They take no risks, always playing it safe and just thoughts and prayers-ing their way to new vehicles. They took risks with the '15 F150 and Mustang, but honestly it's been a slow slide back to irrelevance with Fields and Hackett in charge. The aforementioned products were both conceived and nearly done being launched with Mulally still at the helm.

It's tough to watch and to hear about from those inside, especially when you know what the Mulally age was like.

 

[Notagain]

It's actually pretty simple. Lack of vision and lack of execution of all the bologna being spewed. What does the corktown office and train station mean to prospective investors? Jack sh!t. They are planning on hybridizing and full electrifying everything without thinking about why and if it'll sell well. They're getting rid of low margin cars for potentially significantly negative margin hybrid crossovers, SUVs and trucks, thinking people will buy these far more expensive options over their competitors cars when gas prices shoot up. It's ludicrous.
Also, no one in charge of key, higher margin products (cough Bronco) understands what the hell the product should be, and how to make them actually sell for high margins. They take no risks, always playing it safe and just thoughts and prayers-ing their way to new vehicles. They took risks with the '15 F150 and Mustang, but honestly it's been a slow slide back to irrelevance with Fields and Hackett in charge. The aforementioned products were both conceived and nearly done being launched with Mulally still at the helm.

It's tough to watch and to hear about from those inside, especially when you know what the Mulally age was like.

Speaking of profit margins can someone explain to me why in the flying hell mustangs are 50k, loaded pickups are 60k, and good luck touching a loaded fullsize SUV for under 70k Escalade or Navigator Pftt best show up with 80k + every single one I just is easily 10k over priced.

I cant wait for the automakers to go bust again and start begging for a taxpayer funded rebuild.

Hell Im still waiting on my letter from GM and Dodge that simply says "Thank you taxpayer" !!

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