Cars and Drivers
Ford Drops to 52-Week Low Despite Layoff Plans
Published:
Last Updated:
Ford Motor Co. (NYSE: F) CEO Mark Field’s plans have not impressed investors — again. He laid off 1,400 of the company’s salaried workers in Asia and North America. Ford’s stock promptly hit a 52-week low. For the time being, Fields cannot do anything right, based on investor opinion.
Ford has not only underperformed “Big Three” rivals General Motors Co. (NYSE: GM) and Fiat Chrysler Automobiles N.V. (NYSE: FCAU) in the stock market, Japanese giants Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. Ltd. (NYSE: HMC) also have done better. And that is among the most notable things about Ford’s current situation. It has no rivals in the category of auto manufacturers with out of favor stocks.
Earlier this week, 24/7 Wall St. commented:
Ford has bungled several opportunities, leading to among other things a lack of success in the critical European and Chinese markets. Ford has to thrive in these markets to be a global success, but its market share in both regions is mediocre. Its U.S. business has slipped. Its domestic sales are off 5.1% to 826,981 over the first four months. The figure would be worse if sales of its flagship full-sized pickup F-Series were not up 7.4% to 275,938.
Ford also has been slow into the driverless and electric car businesses. Google and Tesla Inc. (NASDAQ: TSLA) are widely seen as well ahead of Ford. So is GM, which has launched the inexpensive electric car the Chevy Bolt. Several other companies, including BMW and Volvo, are also considered well ahead of Ford.
According to the Detroit Free Press, at Ford’s annual meeting:
Ford assured shareholders that company’s stock price matters both to the Ford family and Ford’s top management but pointed out that Wall Street has historically undervalued automakers, even when they make millions in profits.
That is if the car maker is Ford.
The Average American Is Losing Momentum on Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%* today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying nearly 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.