It's a little worrying how things might develop if Ford decides to significantly raise prices of its cars due to the rising costs of key commodities. It worries me because it is unclear how this inflationary pressure might ultimately affect our jobs. Any thoughts on this?
6 replies (most recent on top)
@OP a bucket of not good for our jobs.
Take the emotions and sentiment out of the equation and good look at the real numbers.
Then take actions to protect yourself and your family.
My son said that Ford management reminded him of Frat boys partying all day and night and then stealing tests /paying others to do their course work / bribing TA to pass their courses.
It is astounding the amount of debt and stupid money placed on unprofitable ventures.
Enjoy the party and free money while it lasts. The tide is about to go out and we shall see who was swimming na--d.
My money is on the nerds and sound business men @ Toyota, Honda, Mazda, Hyundai and Tesla.
With the recent earthquake in Japan and one of the chip plants that supply 1/3 of the world’s supply there , things are going to get even worse. The perfect economic storm is on the horizon .
Just FYI. People are so conditioned by the words recession, that they can't possibly believe a depression is on it's way. Ford, like most stocks, just ran up 400-500%, and the FANG stocks, have already started to retreat in price. The give back stage ALWAYS occurs. A give back stage of 300%-400%, while still up overall, would register as a depression.
Just saying. Imagine 2008 on steroids. In 2008, everyone within the automotive sector were losing their jobs. Downsizing, according to the economic climate.
Keep an eye on Oil Prices. They are always an indicator of things to come. when prices are high it is usually followed by a recession (73/79/90/2000/08). Right now, 90+% of our profits come from F-Series. It will take 2-3 generations of EVs before we may (or may not) see a profit.
Can Ford hold out till then?
Ford can weather this. or is that whether?
In other words, staying competitive in horseless carriages involves technology, no matter what the current economic situation.
Ford is positioning correctly.
Just one opinion.
Always look on the bright side!
@OP. The problem with inflation is that is generally followed with a recession. Recessions are the way to restore the equilibrium of the economy, while inflation is the imbalance between the production of goods/services and printed money in the economy.
During the inflation phase, all products are more expensive, leaving less discretionary income to spend. During the recession, there is less disposable income to spend in general. Regarding transportation, this means people will delay buying another car, will buy used instead of new, and will choose cheaper trims. Therefore, more fierce competition for the customers among the car manufacturers and less vehicle production. I don't have to spell what that means for Ford employees.
Another option, pushing the recession by artificially stimulating the economy (we have been doing just that since 2008) just creates bigger imbalances, triggering bigger corrections, AKA, deeper recessions. Worst options (yes, there are worse than a recession) is the stagflation, where the economy stagnates with high inflation, and deflation, where goods/services prices go down.
Deflation could be good in rare occasions, like when there in an increase of production. However, usually triggers bad things economically. One of those, is that consumers hold their purchases because the future prices will be cheaper, squeezing manufacturers.
In summary, the economy looks bad. Be careful where you invest, and save money for a rainy fund because it seems a big downpour is coming.
Good luck!