Tough Beginning For Ford Motor Company (F) In 2015

Posted by Michael Korte January 6, 2015 0 Comment 1383 views

Ford Motor Company (NYSE:F) is going through a rough patch, as it enforced two forcible recalls on December 31, 2014, on its model – Lincoln MKC. The share price is plummeting and so are investors’ interests!

The First Recall

The first recall of Lincoln was issued when problems pertaining to the nickel plating in the fuel pump area. Ford Motor Company (NYSE:F) was of the opinion that any irregularities could result in choking fuel pump, which further might make vehicles become nonfunctional, during  drive. Thus, Ford recalled 12,205 MKC and 2014 Ford Escape models from various parts in North America, the US contributing to 9038 such recalls!

The Second Recall

The subsequent, second recall was not for any replacement but for repositioning of the start button. At the current premise, the button is placed close to vehicle controls and hence may lead to inadvertent engine shut downs. Ford Motor Company (NYSE:F) authorities were of the opinion that in worst case scenarios, during motion, such issues could lead to nonfunctional airbags. A count of 13574 2015-MKCs (with around 11144 from the US) is deemed to be recalled to deal with the reported issues.

Analysts Say, ‘Buy’ Ford’s Shares

The last year ended for Ford with a whimper and so was the beginning of 2015. Analysts too slapped a harsh ‘buy’ rating on F’s shares, from the neutral stand. More than 43% of the analysts consider that it is high time to buy the shares rather than waiting for lesser prices and better opportunities or profitability. If the struggle for F continues, then it would only be bearish in the upcoming days.

Revival Plans

Ford Motor Company (NYSE:F) has lavish plans of investing close to $2.5 billion so as to bring about profound changes in its struggling luxury cars. The move or ideology is not at all surprising. F has robust plans to develop new found 2018 Lincoln models, thus taking the vehicle count higher, to eight. Investors are of the view that Ford needs to recreate an impressive turnaround and apply the same on its Lincoln models. Indeed, there is hope for revival, though a mere glimmer!

About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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