Ford to cut jobs as sales level off, stock price lags

Dec 2015
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In Your Heart!
And what was it that Trump said about his Creating Jobs? Yet this is happening under Trump's watch.









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Ford to cut jobs as sales level off, stock price lags - ABC News
By Dee-Ann Durbin, AP Auto Writer

"The 114-year-old automaker said Wednesday it is cutting 1,400 non-factory jobs in North America and Asia Pacific. The company will offer voluntary early retirement and separation packages to around 10 percent of its salaried workers in departments such as sales, marketing and human resources. It expects the actions to be complete by the end of September."
"Ford isn't the only automaker looking to slim down. Last month, General Motors Co. Chief Financial Officer Chuck Stevens said GM was considering cuts to its white collar staff in order to rein in costs."
 
Sep 2014
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Right now both $GM and $F are trading at relatively serious discounts. Recently Ford's meeting was relatively contentious because the shareholders are wondering why $F is dropping in price. Meanwhile $TSLA which doesn't make a nickel now has a market capitalization that exceeds Ford! While I think Tesla is overvalued at present, I understand what is behind the market taking a dim view of Ford. Right now there are many who think that we are at 'peak auto' so when people are looking into the future, they are not looking, at least in their minds, at a company that is going to have doubled sales. Ford's actual EARNINGS, as opposed to Tesla's perpetual losses, have also declined.

Nevertheless, Ford makes money, they sell over $100bn per year, they are making over $4bn per year. Their dividend payout is less than 50% of earnings, so its very sustainable. Ford's currently $.15 per share dividend is approximately a dividend yield of 5.5%. However, autos are cyclical and the last nasty downturn almost made GM and Chrysler go the way of the dodo. The market simply does not see the Big Three as being the innovative vanguard of this industry.
 
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Singularity

Moderator
Oct 2009
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Right now both $GM and $F are trading at relatively serious discounts. Recently Ford's meeting was relatively contentious because the shareholders are wondering why $F is dropping in price. Meanwhile $TSLA which doesn't make a nickel now has a market capitalization that exceeds Ford! While I think Tesla is overvalued at present, I understand what is behind the market taking a dim view of Ford. Right now there are many who think that we are at 'peak auto' so when people are looking into the future, they are not looking, at least in their minds, at a company that is going to have doubled sales. Ford's actual EARNINGS, as opposed to Tesla's perpetual losses, have also declined.

Nevertheless, Ford makes money, they sell over $100bn per year, they are making over $4bn per year. Their dividend payout is less than 50% of earnings, so its very sustainable. Ford's currently $.15 per share dividend is approximately a dividend yield of 5.5%. However, autos are cyclical and the last nasty downturn almost made GM and Chrysler go the way of the dodo. The market simply does not see the Big Three as being the innovative vanguard of this industry.
Do you think we're at peak auto, and do you suppose that might be because of the whole situation,

Autonomous vehicles > no labor costs for ride hailing > permanently lower demand for cars?
 
Sep 2014
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Do you think we're at peak auto
There is a business cycle, so even if this isn't peak auto, as in, peak auto demand forever, we might be at a local peak and I really do believe that investors are scared of the next trough particularly with respect to the automakers.


Autonomous vehicles > no labor costs for ride hailing > permanently lower demand for cars?
Indeed this is the elephant in the room because it seems to be one of those things that everybody takes as given WILL happen, but not necessarily exactly WHEN, right? So, when will it happen?

MIT did a study which was relatively fascinating where they essentially extrapolated the absolute minimum number of taxis (Uber/Lyft or yellow) and the total number, if used with complete efficiency was something like 5% of the number that are out there. The long and the short of it is that when you buy a car, you spend tens of thousands of dollars and 90%+ of the time this expensive piece of equipment is just sitting around.
WSJ interview of Ford's CEO:

What are you doing to prepare for an age when a huge amount of when a huge amount of car mobility may be done by sharing?

Fields: You could say there will be less vehicles sold.....{and he goes on to discuss how the industry will start looking at vehicle miles driven}

Fields then discusses Tesla and how he is going to confront that and Ford does have a plan. I'm not saying they will 'win' in that space, but we'll see....
 
Sep 2016
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My own world
I enjoy driving, I can't wrap my head around sitting as just a passenger. I'm starting to sound like the old people growing up that hated progress.