This is a little bit of relief of one of (Ford's) many problems. |
This is going to be a difficult year, probably worse than 2005. |
This is not a company you would buy for its fundamental attributes or its operational strengths. |
This reverses the feeling investors had that a deal would get done by this summer. |
Under the value pricing system, on average, the sticker prices are down a couple hundred bucks. To be effective, value pricing has to be four times that, and incentives required to sell vehicles must be removed. |
We have today and tomorrow as the last trading sessions of the year. With the stock being down so far, you would be looking at a little bit of tax selling to harvest those capital losses to offset gains in other areas. |
What you're getting now with the stock where it is trading, there is a lot of news-event volatility, you get people betting on the next move... they're basically just trading on the momentum being generated by the news. |
Whether longer term that actually makes a difference, I have questions about that. |
With Ford and GM's dependence on trucks, and a lack of significant meaningful products on the sedan side, they will continue to struggle. |
With them losing market share the way they have been, they are most certainly going to lose more, so this just will not be enough. |
You really start to wonder whether anyone is going to buy a car at regular price anymore. |
You've got three different parties here -- GM, Delphi and the UAW -- trying to figure out what GM's obligation is, ... GM could be on the hook for a lot of those UAW workers, but it's not completely clear. It's just a giant bowl of spaghetti right now. |