After over a year of saying it would make a profit in 2009, the new management at Ford (F) has given up the ghost. Once auto sales started to move down sharply the middle of last year, the company never had a chance. It is a shame that they did not admit their mistake earlier. Getting back on Wall St.’s good side will take months if not a year or more.
Ford’s shares opened down over 7% on word that "it no longer expects to meet a long-held goal of returning to profitability in 2009 and would cut production through the remainder of this year to adjust to a slumping U.S. market," according to Reuters.
So much for the investors who bought the stock over the last five weeks on the Ford’s assurance that things were going well.
Douglas A. McIntyre
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