Troubles for Ford, G.M. and Fiat Chrysler Send Shares Diving
nytimes.com/2018/07/25/business/autos-earning...Posted Jul 26, 2018, 3:13 PM UTC
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nytimes.com
if you're looking to own any of those companies the time is now. Ford is a good dividend stock too.
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I don't know man, steel and aluminum tariffs are going to drag prices up for everyone, credit is tightening, and real wages are actually declining. I'd argue that auto manufacturers are either currently facing or are about to face some very hard times. I'd watch Ford especially since they're clearing the deck of their low cost cars, meaning they lack a plan b if increase costs push their crossovers out of consideration for new car buyers.
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you need to think long term. ford getting rid of a product line means they've looked at the numbers and it makes more sense than to keep making them. that means lower costs and a better bottom line. i'd much rather invest in a company with a really good product than a company with a bunch of ok products. the F-150 isn't going anywhere and the mustang is still the best selling sports car. it makes sense to shift production towards the best selling products. what do you think will last longer? Ford or this administration?
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Long term? The future of personal cars is electric, but Ford has no interest in that. Sometime in a decade or two, we'll see self-driving car services reduce the demand for personal cars in urban areas, further cutting into car sales. On top of that, Ford is strangled by the UAW and as the company shrinks, it won't be taking on young employees, meaning the average healthcare cost per employee will increase.
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Ford announced it was going to have 40 electrified cars by 2022 or something like that. They're getting rid of small cars so they can try and beat their competitors to the electric punch.
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real wages are actually declining.
They've been flat for a long time. In fact, with these made-up unemployment stats, wages should be going up because labor is presumed to be in such short supply.
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If sales numbers are finally showing the truth, it might be best to wait a bit. If sales continue declining then it would make more sense to buy when share prices are depressed. That's the long game.
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Dividend implies long term profits and payouts. I don’t see that happening for the US auto industry for several reasons. As it is , you need an income of at least $51,000 per year plus $13,000 cash to buy a new vehicle at the average selling price of $34,000. That price is only going to go up. Wages won’t. So each year fewer people are going to be buying new cars. The way forward is rideshare services and vehicle subscriptions like Volvo’s setup. Ford and other legacy US companies’ might convert to these systems- but not before their companies are on the verge of insolvency.
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someones got to buy new cars, or else used cars dont exist. so used car prices increase, which makes depreciation costs of new cars fall.
Theres no shortage of people in this country that can afford these cars.
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I wouldn't buy Ford right now unless you like losing money.
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so when do you buy ford? when the price is going up? lol. buy low sell high and time in the market beats timing the market. basic principles of trading stocks.
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You don't.
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damn, they'd better spread more panic headlines about Tesla
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The economy is not humming, despite what the first line in the article says. Car sales have been slowing for a while (globally), and when GM announced it was changing sales reporting to every quarter (from every month), that was the first sign.
Car sales have been going up. https://www.usatoday.com/story/money/cars/2018/04/03/u-s-auto-sales/480980002/
This tariff is basically a huge disaster. As prices rise, people will put off buying new cars.
Tariffs are a huge disaster. I can't imagine how many people face-palm when they realize that manufacturers will either pass the costs on to consumers, or shutter operations which leads to job losses.
Yup. It’ll affect the whole supply chain too, so it’s not just the carmakers’ direct expenses - the tariffs will impact the suppliers and components too.
But hey, America is winning, right?? Too many idiots out there have no idea.
Didn't the US and EU just agree to no new tariffs? Prior to this there were heavy unidirectional tariffs, which I'm sure the EU manufacturers loved...
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Yeah, but that's on the car import tariff that was being mulled over. There's still the ongoing steel and aluminum tariffs and Chinese import tariffs, not to mention that there isn't actually a deal yet with the EU. Costs are still going to rise for raw materials and components across the board, which will likely lead to some dramatic MSRP increases in the next year.
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Car sales are down. Crossover and truck sales are through the roof. My local dealer has a waiting list for the Terrain Denali.