Based on my extensive research over the past 3 years below is a gist of high level factors affecting US and global economy in general and how it is going to affect Ford in particular.
- First is the high interest rates forcing housing activity to come to stand still. This factor is affecting the commercial sector where many small banks hold the commercial paper. Pandemica and WFH fked this sector up. So this is the curve ball as much of paper is up for renewal in 24 and 25.
- Second Factor: Inflation which was caused by pandemic printing by FED. the money that was distributed is now finally running out for almost all of the people who have received and word is that all of it will be gone by september. That results in reduced activity and people shy away from new cars especially expensive trucks like ford trucks.
- Third Factor: War in ukraine and its implications. USA pumping billions into the wastelands of ukraine, draining the liquidity in usa.
- China slowdown due to the housing market collapse due to evergrande type scams etc. Aging population etc
- AI disrupting the knowledge workers and it will only accelerated into next few years.
- Hours worked has been dropping last few quarters and unemployement in white collars is rising
- Fed gameplan to reduce inflation is to increase unemployement so people stop spending on expensive trips to europe etc
- Union now asking for 40% payrise which will further increase the price of vehicles.
- Tesla dropping prices will affect Ford as ford cannot compete at those levels.
- Ford building its bench strength in LCC like brazil, mexico, india etc and causing it to fire US workers without disruption to global operations.
- The push for green energy is not allowing for investments in old technologies per the WEF 2030 agenda.
- Ford will continue to rinse and repeat this layoff process like a slow motion train wreck as it readjusts operations on a global scale.
Good luck to all dealing with this situation. Comment your thoughts and challenge any of these points that I have made.