Cars and Drivers
Ford CEO to Be Fired as 24/7 Wall St Suggested
Published:
Last Updated:
Mark Fields will be fired as Ford Motor Co. (NYSE: F) chief executive officer and replaced by Jim Hackett, who runs the Ford autonomous car division.
24/7 Wall St.’s comments about the situation posted last week in two separate articles:
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 in the 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.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
