No Turnaround At Ford (F)

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The Wall Street Journal thinks that things are getting better at Ford (F) and that management efforts can now be called a "turnaround". The paper points to improving earnings and cars which get better quality marks, closer to Toyota’s (TM). The Journal also points out that "More job cuts may be coming."

But, if wishes were horses, all the beggars would ride.

Ford may have cut costs. Its cars may have quality closer to the Japanese, but the quality of all US cars is now about equal with most imports. The Ford numbers are nothing special.

Ford is also faced with intractable problems. Overall sales in the US market are falling. And, Ford’s share of that market is shrinking, now sitting at about 15%.

Ford’s most profitable vehicles, its SUV and pick-ups like the F-150, have seen falling sales due to high gas prices. Fuel costs and falling consumer spending are likely to push units shipped down further.

Ford is still in the woods.

Douglas A. McIntyre