Ford has worst day since 2011 while GM has record earnings

[RedRocketMike]

Their margins took a substantial hit. IMO, they might be exhibiting some old bad habits and chasing volume. I won't pretend to know their strategy, but based on fleet sales figures and increased incentive spend, it would seem to suggest that. It's only one qtr.

I'm still a buyer.

They're fighting for market share. GM is choose profit margin over market share and they did well this Q, but Ford dragged their stock down too.

 

[2000gt4.6]

Requiring too many incentives drove their loss. What would you say was the leading contributing factor to the need for these incentives?


Automaker stocks are not very good investments because the market is so saturated. Short of something wildly innovative they are stuck in a range. I would only own it to trade the range. If Ford is struggling now that suggests they won't handle any global economic decline very well.

It sure as hell wasn't the ecoboost lineup driving the need for incentives.

You ecoboost haters kill me. One day of stocks failing due to money value fluctuations and it's an engines fault? If 10 years ago I would have posted info on this forum showing Ford was going to have a lineup comprised mainly of forced induction engines you would have been jumping for joy.

People love the EB. Why else is it selling so well in the trucks? There's a V8 option right there and yet more and more people pull the 3.5 lever. Salesmen are not out there holding guns to buyers heads....


How do you not love a lineup where nearly every car has a turbo option and all the turbo options are conservatively tuned, packing power trains that can handle a ton more power? Not to mention a ton more TQ down low, etc etc.

Its an enthusiast wet dream, a 1000 bucks in tuner and simple parts away from 50-100 more HP/TQ without compromising anything.

The worst part is you blindly believe that somehow, despite all previous history, every car/truck would be packing a 10000 HP V8 option if not for that dammed hippy ecoboost. Reality is, without it we would have no sporty fiesta, focus,fusion, edge,escape, or taurus.

 

[1 Alibi 2]

Bought Ford @ $ 1.85, not too concerned..

 

[capnkirk52]

Requiring too many incentives drove their loss. What would you say was the leading contributing factor to the need for these incentives?

Competing with two other large manufacturers that got their debt wiped out by the taxpayers. Those companies still have to offer over $7,000 in incentives to even compete with a comparable F150. I'm sure there is way more to it than that but this has to be a local factor.

 

[GTSpartan]

Competing with two other large manufacturers that got their debt wiped out by the taxpayers. Those companies still have to offer over $7,000 in incentives to even compete with a comparable F150. I'm sure there is way more to it than that but this has to be a local factor.

As bad as that is, nothing can be done about that. It is what it is now.

Your point about pricing is incorrect. At least for this last quarter. Ford had a net pricing loss of ~$660M for Q2, while GM saw a $1.3B gain. Ford put a lot more cash on the hood and/or sold significant volume to fleet customers.

 

[WireEater]

I'm just waiting for Tuesday to see how the Mustang is still crushing the Camaro sales.

And this is a better video/article.

http://www.usatoday.com/story/money...talking-like-auto-sales-have-peaked/87695658/

 

[capnkirk52]

As bad as that is, nothing can be done about that. It is what it is now.

Your point about pricing is incorrect. At least for this last quarter. Ford had a net pricing loss of ~$660M for Q2, while GM saw a $1.3B gain. Ford put a lot more cash on the hood and/or sold significant volume to fleet customers.

Hmmm. Maybe it's just my area but to see a new Ford with anything more than a $1000 rebate is rare. The GM's have at least $7,000. I didn't do any research, just local stuff. A $2B swing between companies is crazy.

 

[hockeylover86]

Hmmm. Maybe it's just my area but to see a new Ford with anything more than a $1000 rebate is rare. The GM's have at least $7,000. I didn't do any research, just local stuff. A $2B swing between companies is crazy.

Super duty's have $5700 cash on top of everything else right now, but that is because of the major change to the 17's coming..

 

[thehunterooo]

I'm just waiting for Tuesday to see how the Mustang is still crushing the Camaro sales.

And this is a better video/article.

http://www.usatoday.com/story/money...talking-like-auto-sales-have-peaked/87695658/

My favorite time of the month now, watching the fire burn at Camaro6 is pretty funny. Will the Camaro break 5000 units in a month again this year?