Filed under: International markets, Deals, Ford Motor (F), India
Shares of Ford Motor Co. (NYSE: F), which are down about 11% this year, are trading close to a 52-week low. Anyone with a pulse knows why: the auto industry stinks.
But let’s look at this from another vantage point. At $5.98, all of the bad news may have been factored into the stock price. The company is slicing costs by selling Jaguar and Land Rover to India’s Tata Motors for $2 billion. While it is a fraction of the price it paid for the luxury automakers, Ford is lucky to have found a buyer at all. The money will at least help put a dent in the $15.3 billion in losses the automaker has incurred over the past two years.
Under CEO Alan Mullaly, the company is headed in the right direction. Several new models including the Ford Flex do look promising, and Ford seems serious about stemming the losses in North America. I am not suggesting that the company is near solving its many serious problems. But even the tiniest bit of progress will boost the stock from its current levels.
For investors with an iron constitution, this stock might be worth a look. The faint of heart need not apply.
Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.
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