Recent Ford Motor Co. (NYSE: F) earnings were slightly better than expected, but the guidance for this year was wanting. Management and the Ford family cannot continue to disguise the fact that the company has run out of excuses. CEO Jim Farley has to be fired and replaced by a rock star. Otherwise, there is no single reason for shares to recover.
24/7 Wall St. Key Points:
-
Ford Motor Co. (NYSE: F) stock is down 22% in the past year, and the automaker’s outlook is concerning.
-
It is time to replace CEO Jim Farley.
-
Take this quiz to see if you’re on track to retire. (sponsored)
Trending Video
The stock is down 22% in the past year, against a 22% gain by the S&P 500. Crosstown rival General Motors Co. (NYSE: GM) has seen its share price increase 22% in that time. The difference between GM and Ford tells the entire story.
Ford has had a warranty problem, which has caused it to write off hundreds of millions of dollars in the past year. Its electric vehicle (EV) business, in which it invested tens of billions of dollars, did not work because it could not figure out what it cost to build and then how to price them correctly.
The other EV excuse sounds something like “Tesla owns the market.” Ford will take a long time to make major inroads, it says. That was not the way Farley was talking two years ago. The company was going to rule the U.S. EV industry.
Now, there is trouble in China. Its business there has fallen apart, mostly because of gains in the sales of China-based companies’ EV products. Ford’s business in Europe, South America, and Asia is not strong enough to pull it out of a tailspin.
The company has no “green shoots.” It is simply a disaster. The Ford family is ultimately to blame, but they could find a competent chief executive who actually has a chance to fix the company.
Are Electric Cars Really Better for the Environment?
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
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.