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Why is Ford doing badly. List top 3 reasons?
byt that I mean profits falling, employment shrinking, stock plummet.
4 Answers
- Anonymous2 decades agoFavorite Answer
1) In May 2005 several bond rating agencies downgraded the bonds of Ford Motor Company to below investment grade also called "junk bonds"
2) Ford ended 2005 with 18.6% of the US market, down from 19.6% a year earlier.
3) North American operations are bleeding money. Through the first three quarters of 2005, North America lost $1.44 billion.
- Spartacus!Lv 72 decades ago
1) Pension obligations. Ford, like GM, has extensive pension and benefit obligations, which reduce vehicle profitability.
2) competition from Japan and Korea. Car makers in both of those countries have lower production costs and make vehicles that are either higher quality, lower priced, or in many cases both.
3) slow product refresh process. Case in point, Ford Taurus. While the initial design was very innovative and popular, the basic body design remain identical from 1986 to 1996, while competing vehicles from Toyota, Honda and Nissan updated their designs in that period at least twice.
- TwinklestarLv 62 decades ago
Because foreign cars are made better, last longer and ppl want the best for their money