Would you invest in Ford Motor Company?
Why or why not?
- 1 decade agoFavorite Answer
I would. I am actually looking into it right now. While the American automakers aren't doing so well right now, and asking for a bailout, ALL car companies, from Detroit to Tokyo, are hurting. Chrysler is almost certain to go bankrupt no matter what they get from the government, and General Motors probably will as well. Ford has said they probably won't need the money, but would like the $9 billion as a backstop in case of emergency. GM wants $18 billion ($4 billion immediately), and Chrysler wants $7 billion. The only competent American automaker is Ford. They are strong globally, and European Fords are top-shelf cars that are just as good as Hondas. They are in the process of moving their European/global models to here, which is great. We are getting the Fiesta in 2010, which is an excellent car, and the 2010 Fusion looks promising. What they need to do is bring the European Focus and Mondeo over here, to have the trio of Mondeo-Focus-Fiesta, 3 of the best cars on the market. I believe in Ford, and hope they do well.
- apennsylvaniaguyLv 41 decade ago
I would consider it. Ford is in much better shape than GM and Chrysler (a private company) these days. My father bought around 1000 shares of Ford about 3 weeks ago. If they return to their former glory, he will make a hefty sum of money.
If I understand correctly, They have asked for the bailout loan, but they have enough cash to make it through 2009. They want the government line of credit to be in place for use only if it is needed to survive.
They are hoping to return to profitability in 2011, and I believe they have a good chance because of positive changes CEO Alan Mullally is making. He has trimmed labor. He sold Jaguar, Aston Martin, and Land Rover for needed cash. He is investing heavily in future models and technologies that will pull Ford Motor Company ahead of their American competition. I believe he is receiving unfair criticism in the media and by the public. Ford would be in much worse shape if he wasn't there. He really inherited all this mess a couple years ago from former CEO Bill Ford. Mr. Mullally is a very intelligent man who saved Boeing from the brink of extinction.
Their new models that are arriving in 2010 will be more fuel efficient. The new Fiesta will get 40 MPG. There is the 2010 Fusion/Montego/MKZ Hybrids which were introduced to the public at last weeks LA Auto Show. A new Taurus and Explorer (to be a car based CUV) is on the way. The new 2009 F150, in certain trim levels, will achieve 20 MPG. Ford is the only big 3 maker investing heavily in future production. GM is scaling back on some future models.
Their quality is equal to Honda and Toyota, which is something GM and Chrysler can't claim.
So, with all that said, I personally would invest a little money in Ford, but you need to decide for yourself what is in your best interest. I believe the 1000 shares my father has may be too much of a risk, but the stock market has always been a gamble.
- Robert MLv 71 decade ago
Not. They have no earnings. They have $157 billion in debt. They pay no dividend. They are losing market share to competitors. The have an unsustainable cost structure. And not surprisingly the stock price is making new 52-week price lows.
If you invest in F you need more education, buy a CD instead.
- kihlstromLv 43 years ago
for my section, i might stay far flung from Ford and all motor vehicle production. in case you rather have faith the "turmoil" is over, then dive into Citigroup (image: C). This previous week, that they had a pair days while the inventory took a downward turn. yet on Firday its replaced into up 6.25% and for this reason sitting at a $3.40. Or BAC (financial business enterprise of u . s .), yet i might extremely purchase into Citigroup.
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- 1 decade ago
not now. because they are strugling. they are seeking help from government means future return is highly unlikely.
As a private investor you need to secure your return. But in this case Ford is not the best option
- Anonymous1 decade ago
DEPENDING IF THE GOVERMENT GIVES THEM THE BAIL OUT THEY ARE ASKING FOR.