End Of Deadlock Would Help Ford Motor Company. (NYSE:F)
Ford Motor Company. (NYSE:F) stock has gained close to 0.17% during the first few hours of trading on October 16. This rally has been in spite of the uncertainty that has gripped the financial markets due to the fears of more disruption to be caused by the budget logjam.
While head honchos of Auto firms have taken different approaches to tide over the situation. While some like Ford (which has a big government stake in its stock) has attempted to grit its teeth and wait for the mess to entangle, other car makers have taken to the airwaves warning the government of dire consequences to the economy in general and automobile sector in particular if the lawmakers do not get the federal lock down lifted quickly. Ford spokesperson Erich Merkle has been quoted as saying on October 16 that they have not yet seen any slowing down of sales in U.S. that can be related to government shutdown. On October 15, Hyundai’s CEO had publicly commented that U.S. auto sales would suffer up to 10% drop due to the shutdown.
In an interesting co-incidence Ford sales in Europe for the month of September registered a 5% increase. Earlier in the day General Motors too had announced that its U.K sales in September had seen a significant 5.4% increase. Shareholders of U.S carmakers would be hoping that the strong showing in U.K by Ford would help any eventual sales slowdown in U.S more manageable.
Ford Motor Company. (NYSE:F) has been on a role over the past few quarters. The car maker with a market cap of $66.7 billion has its stock tracked by S&P 500. The stock has appreciated by 2.8% in the past week and by close to 71% over the past 12 months. Share holders would be all the more happy if the car maker is able to sustain this good run.