Would it be wise to invest in Ford Motor Company right now?
- Anonymous1 decade agoBest Answer
Ford depends on a good economy to become more profitable. People can defer buying a new car or truck.
Unless you believe the worst is over and the economy is headed into a new bull market, don't expect the stock market, or ford, to do so either.
- Anonymous1 decade ago
If you got some money to burn then yes lifting ford around here on a wait n see approach would be fine it could work out for you, high risk high return. Unfortunately, the fact is no one is buying cars, if they are then the purchases are going to be more often than not, used. And truck sales will continue to go down as they tend to be inversely correlated with gas prices. Also, just bc they dont need the cash injection and think they can make the year without it doesn't mean the recession will cease in a year nor does it mean they cant come running back to congress and ask for some cash.
Unions schmunions.... Its not the unions fault, the car companies allowed them to dictate their own terms. I do think a new collective bargaining agreement will be put together for the both the auto makers and the uaw, hwvr that's bc i think they will end up having to claim chap 11, giving auto mngmnt the ability to renegotiate more favorable terms w/the uaw.
Who knows really, these are just my own personal thoughts on the matter. Wish you the best of luck tho.
- SamsonLv 41 decade ago
It depends. It depends on how strong your portfolio is right now. Ford is a very high risk right now, and it would not be wise to put all your money into that stock, well for that matter it is never wise to put all you money in one stock, but that's for another time. Ford is the better candidate out of the other two, and in my opinion will survive this recession. So, if you have some extra money lying around than I would say go for it, you have the potential to make a ton of money in a few years. Good Luck!
- Roll_Tide!Lv 51 decade ago
Because Ford is doing better than the other 2 worldwide, they did not ask for a bailout only a line of credit, their deal with the unions is much more profitable, and they still are building the number 1 truck.
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- Anonymous1 decade ago
Stay away. Its just a matter of time before they to need a bailout. If you want to purchase a ford, go right ahead. Investing in the company is another thing. The union is hurting the auto industry real bad and making it real hard for them to compete with foreign companies.
- NormaLv 71 decade ago
I say yes. The Company says it can last without a bailout money until the end of 2009. Their cars have quality that is equal to or better than the imports.
- Big BullyLv 61 decade ago
Debt, poor earnings and UAW. Not wise.