Ford Collapses, CEO Needs to Be Fired

Investing

Published: February 7, 2025 10:45 am

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.
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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.

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