Key Points

• Ford Motor Co. (NYSE: F) has consistently fallen short of investor expectations for decades.
• CEO Jim Farley has to expect an ouster soon.
• Perpetually misguided strategies have hampered the company for years.
• Instead, focus on proven winners like “The Next Nvidia” before everyone else gets clued in.

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[00:00:00] Doug Mcintyre: Ford (NYSE: F) have once again proven that they have the worst run company in the world. I mean, they, the third quarter, they were very slightly above expectations, but they guided at the low end. And it’s just like every quarter, there’s some excuse, you know, it’s Ford is the, the, the dog ate my papers, uh, a big American company.

[00:00:25] Doug Mcintyre: Ate my homework. Yeah. I mean, so. Um, it did, I mean, the stock is trading down about 4 percent right now. And, uh, I mean, I’m just looking here, I don’t have the earnings right in front of me, but, uh, you know, it’s, it’s just, it’s, it’s a mess. And it’s proof once again, that the idea that Ford is going to be turned around because it’s got an EV division and the idea that it’s going to be turned around cause it can do well in China.

[00:01:03] Doug Mcintyre: It’s Ford is a gasoline engine car company. They can live or die by that. Like everybody else. But I mean, we’re starting to see how bad this is. Volkswagen just said they’re going to lay off several tens of thousands of people. In Germany, their home market, they’ve never laid off people or closed factories and closing three plants,

[00:01:27] Lee Jackson: which is unheard of.

[00:01:28] Lee Jackson: It’s

[00:01:28] Doug Mcintyre: almost impossible

[00:01:30] Lee Jackson: in Europe.

[00:01:30] Doug Mcintyre: I mean, and I think that’s a 90 year old company. Um, Ford has said that it’s UAW contract would eat into, uh, it’s revenue by 8 million, 8 million. That’s all during the, during the length, 8 billion, 8 billion during the length of the contract. So that hits EPS, um, every single quarter.

[00:01:55] Doug Mcintyre: And I haven’t seen the warranty numbers yet. The, the, the, the, the next thing it’ll pop up here on the screen is how they did with warranties. But, um, I’m going to ask you a question while we start to look at this stuff. How does Farley keep his job? I, that I want you to tell me the answer to that now. I guess

[00:02:14] Lee Jackson: one reason that he could keep his job is if he goes to the Fords and everybody else and says.

[00:02:21] Lee Jackson: No, no, no more listening to the government on EVs and where we got to get to and all of this because we are getting hammered. Because I mean, there will be a place for EVs. I mean, we all know this, but there, there’s a point where until the marketplace for it is mature, Or, or semi mature. Why do you go, it’s like going all in when you first walk into a casino, you don’t go all in then you go all in.

[00:02:53] Lee Jackson: Once you’ve built up a little bit of their money. And I think the only way he can save his job is to come up with the. Smart plan to trim back EVs to the level where they do sell them. Because like we’ve talked about Doug, ad nauseum, when there is the 20, 000 or 25, 000 sedan where the battery will last and you can easily charge it, there’ll be a marketplace for it.

[00:03:24] Lee Jackson: But not now.

[00:03:26] Doug Mcintyre: No. And listen, again, I’m, I’m looking at these numbers and the stock’s continuing to fall. It’s, it’s now, you know, down 5%. Now listen, Ford’s never particularly a droid when it has its call afterwards, but you know, you can always save yourself with the call. That’s what I like about the earnings call is the CEO and CFO can always save themselves or they can fall on their swords.

[00:03:53] Doug Mcintyre: So it’s, yeah, it’s, it’s one or the other. But it’s another example of the fact that Ford is not a well run company. They haven’t done what they need to. They keep investing. They throttled it back, but they’ve put billions of dollars into EVs. They need to cut their cost structure. It costs too much to run the Ford motor company right now.

[00:04:17] Doug Mcintyre: It’s the reason that these profits are so horrible. So, you know, once again, and this means that everybody’s got to wait another quarter, oh my God, it’s so going to be so tiring and because it’s going to be year end, it’s going to be announced like in late February or something.

[00:04:34] Lee Jackson: And there’s so many people buying cars at Christmas time.

[00:04:38] Lee Jackson: Yeah.

 

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