Why Ford will Continue Struggling without Alan Mullaly - GuruFocus.com (registration)
It’s been over a year since Ford ’s ( NYSE:F ) former CEO Alan Mulally retired, and it seems like the Blue Oval is struggling without him. The stock is down over 20% since the time Mulally handed over the control of the business to current CEO Mark Fields, and many factors indicate that Ford’s struggle will continue. Ford’s F-150 has been a cash cow for the company for over three decades, and many investors were rightly skeptic when the automaker announced that the 2015 F-150 will have an aluminum-truck-bed-and-body. Investors’ fears have come true as Ford is losing market share to rivals like General Motors ( NYSE:GM ) and Fiat Chrysler ( NYSE:FCAU ). It was widely believed that Ford is losing market share due to production shortcomings. Ford had to retool two of its main production plants so as to produce aluminum trucks, and this process took more time than expected. As a result, Ford’s market share shrunk throughout the first half of 2015. On the contrary, Ford did witness record average transaction price this year. While Ford bulls expect the company’s sales to skyrocket once the production capacity reaches maximum level, a new Bloomberg report suggests that Ford is offering discounts up to $10,000 on the new F-150. The report noted :. “Ford Motor Co. has... Source: www.gurufocus.com
