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Ford's darkest day in 5 years


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Ford just waved a caution flag on American car sales.

The No. 2 U.S. auto maker warned on Thursday of a growing list of global risks and suggested the previously-roaring American market may have peaked.

 

"We are seeing signs of a maturing U.S. recovery," Ford CEO Mark Fields told analysts during a conference call.

Wall Street doesn't like the sound of that. Ford (F) stock plunged 8%, on track for its worst day since at least January 2011. The stock is now down 10% this year.

Ford's second-quarter profits were dented by expensive incentives to lure customers -- an industrywide trend the company believes will continue.

Related: Best-loved new cars of 2016

Ford execs also dimmed their 2016 outlook on U.S. auto sales, which hit record highs last year and were a bright spot in the economy. The company said sales will likely soften further in 2017.

"Sales are still at healthy levels overall, but the competitive environment has increased as retail demand has weakened," Fields said.

That view stands in contrast with General Motors (GM), which last week posted record earnings and promised better times ahead.

Ford's credit arm also stumbled amid concerns about auto loan deterioration. Profits at Ford Credit slumped 21% during the quarter due to rising defaults, higher delinquencies and lower resale values in auctions.

Ford GM stock autos

 

Related: U.S. government worried about risky car loans

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Away from the U.S., Ford experienced turmoil from Brexit. The auto maker suffered a $60 million hit due to the collapse in the British pound and warned of full-year losses of $200 million related to a "weaker industry" in the U.K.

Britain is Ford's second biggest market and makes up about 30% of European sales. Ford anticipates losses of $400 million to $500 million a year after 2016 due to Brexit.

The economic slowdown in China is also creating headaches for Ford, which posted a loss in Asia-Pacific. Sales in China slowed and Ford lost significant market share there.

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4 minutes ago, Mainecat said:

Cars are expensive. College grads can't afford one or a home.

 

That what happens when you get a useless degree instead of a trade

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Ford should try to get the GM deal ....you know ....where you dont have to honor any of your outstanding debt and you get a clean balance sheet to start over every few years!!

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21 minutes ago, Ebsell said:

GM has been giving huge discounts here. 20% off a new truck plus 0% interest. At least Ford is in better shape than the rest. 

20% off MSRP is not a huge discount, it's not even a discount for that matter when you factor in the ridiculous MSRP in the first place.

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21 minutes ago, Ebsell said:

GM lead the way for recalls over the last couple decades. Ford had their junk in the 80's and 90's but now GM is the recall king of NA 

Apparently you forgot about the spark plug spitting 4.6 and 5.4 Triton engines?

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20 minutes ago, snoughnut said:

Apparently you forgot about the spark plug spitting 4.6 and 5.4 Triton engines?

There was never a recall for them because it wasn't as common as the internet makes people like you think it is 

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3 hours ago, Mainecat said:

Cars are expensive. College grads can't afford one or a home.

 

Alot of brand new base model cars that can be had for around 14k or less.  Cars are cheap as shit....  Pickups on the other hand are very expensive these days.

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3 hours ago, f7ben said:

Ford should try to get the GM deal ....you know ....where you dont have to honor any of your outstanding debt and you get a clean balance sheet to start over every few years!!

:news: 

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Told you about a month ago the car bubble is about to burst and believe it or not there is another housing bubble about to burst.

Mostly for diff reasons though..but fairly easy credit is part of it.

But high house prices/taxes is killing some people.

Edited by Capt.Storm
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2 hours ago, SVT Renegade XRS said:

There was never a recall for them because it wasn't as common as the internet makes people like you think it is 

No it's because Ford is notorious for just updating stuff when they have big issues and just leave the owners hanging. I know lots of guys whose 2v's spit plugs.

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1 hour ago, Sludgey said:

No it's because Ford is notorious for just updating stuff when they have big issues and just leave the owners hanging. I know lots of guys whose 2v's spit plugs.

Sure you do :z:

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8 hours ago, Mainecat said:

Cars are expensive. College grads can't afford one or a home.

 

 

4 hours ago, BOHICA said:

Alot of brand new base model cars that can be had for around 14k or less.  Cars are cheap as shit....  Pickups on the other hand are very expensive these days.

x2.  I can't believe the number of young people I see in rather expensive cars.  There is even a guy not far from me with a Nissen GTR, can't be more then 25.  Lives is a pretty slummy apartment, but at least he has his GTR.  

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10 hours ago, SVT Renegade XRS said:

There was never a recall for them because it wasn't as common as the internet makes people like you think it is 

There was never a recall because Ford pretty much said fuck you to vehicle owners. Amazing how wrong you are, I have 2 Ford vehicles, one has a 4.6 and the other has a 5.4 and they both shit the bed regarding the plug issue. My 2004 E 250 with the 4.6 launched a plug right out of the cylinder head while I was stopped at an intersection.

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7 hours ago, snoughnut said:

There was never a recall because Ford pretty much said fuck you to vehicle owners. Amazing how wrong you are, I have 2 Ford vehicles, one has a 4.6 and the other has a 5.4 and they both shit the bed regarding the plug issue. My 2004 E 250 with the 4.6 launched a plug right out of the cylinder head while I was stopped at an intersection.

Un huh, sure you did

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