Alan Mulally of Ford (F) is sticking to his forecast that the company will be profitable in 2009. But, according to Reuters, he admits that the mortgage crisis and economic slowdown could hurt that.
"The world economy will continue to grow, but at a slower pace," he said.
Ford may simply be dreaming. While the company has made considerable cost cuts and the new UAW contract may help improve that, its market share in the US is heading well below 15%. Toyota (TM) now outsells Ford most months, and there is little reason to believe the buyers will continue to move away from Ford products.
Ford’s stock has rallied a bit over the last month. But, if September and October domestic sales figures are weak, all of that could go away.
Douglas A. McIntyre