April 30, 2009: Sell Ford, Because of Ford
I am hard pressed to find a company chairman who is a progressive socialist whose company stock warrants a bet. Bill Ford, the Chairman of Ford (F) appears to be genuflecting towards Big Government and the left fringe by calling for a hefty tax on gasoline to push Americans into what the government thinks they should own - and Big Government knows best, according to Bill Ford.
Mr. Ford stated this week that taxes to push up the cost of $2.00 gasoline by 70% were needed to change Americans' car buying habits and usher in a new generation of fuel efficient vehicles.
"We clearly need (the tax)- whether it's a gasoline tax or cap and trade, it's something we do need because with gasoline at $2.00 (a gallon),customer behavior is not driving the direction that the government would like", he said. Asked how high the gasoline price should be set, Ford stated:"I don't know what the magic number is, somewhere around $3.50. We've seen behavior go back now that it's around $2.00. We don't want that, we don't think society wants that. We think price certainly is a better way to go." Ford is a declared environmentalist.
Perhaps like his great-grandfather, who was a raging anti-Semite and had profitable dealings with Hitler, Bill Ford carries a diabolical gene that permits profit while "gassing" others.
Of course, there may be a perfectly rationale reason why Bill Ford wants to force prices higher. Ford and all other American auto makers have never made worthwhile profits on small, cheap cars. Perhaps Ford wants to force the sale of cheaply made cars at a premium price to justify his investment in green technology. This would be a good thing for the Ford Motor Company.
My belief is that Ford is,in reality, sticking it to the less than blue-blood class by driving down the resale of their present vehicle, raising the cost of business across the board and thus diminishing the standard of consumption and living standards of those making modest wages. In other words, Ford wins selling new too-small and "coffin" ready cars at a higher price.The blue collar customer who has been Ford's lifeblood since the early 20th century loses, and loses big.
Bill Ford's mindset is narrow, unsustainable and not in the best interest of the Ford Motor Company. He should resign.His grandfather's company needs to hold true towards providing solid transport from trucks to autos through producing products that people want to buy - not what Big Government thinks they should buy through economic coercion. If green cars are a part of the mix to be sold at a good profit margin, fine.
Shame on you, Bill Ford, and shame on those who prefer socialism and high taxation as a way to dictate philosophy. It has never worked, thus the Ford Motor Company will ultimately not work. Sell the stock, or gift it to the Sierra Club.
F stock has made a nice run up recently and will likely avoid the fate of GM and Chrysler. I'll call it a dead cat bounce, with the company not being able to compete with others down the road unless a new Chairman is of a different ilk.
Mr. Ford stated this week that taxes to push up the cost of $2.00 gasoline by 70% were needed to change Americans' car buying habits and usher in a new generation of fuel efficient vehicles.
"We clearly need (the tax)- whether it's a gasoline tax or cap and trade, it's something we do need because with gasoline at $2.00 (a gallon),customer behavior is not driving the direction that the government would like", he said. Asked how high the gasoline price should be set, Ford stated:"I don't know what the magic number is, somewhere around $3.50. We've seen behavior go back now that it's around $2.00. We don't want that, we don't think society wants that. We think price certainly is a better way to go." Ford is a declared environmentalist.
Perhaps like his great-grandfather, who was a raging anti-Semite and had profitable dealings with Hitler, Bill Ford carries a diabolical gene that permits profit while "gassing" others.
Of course, there may be a perfectly rationale reason why Bill Ford wants to force prices higher. Ford and all other American auto makers have never made worthwhile profits on small, cheap cars. Perhaps Ford wants to force the sale of cheaply made cars at a premium price to justify his investment in green technology. This would be a good thing for the Ford Motor Company.
My belief is that Ford is,in reality, sticking it to the less than blue-blood class by driving down the resale of their present vehicle, raising the cost of business across the board and thus diminishing the standard of consumption and living standards of those making modest wages. In other words, Ford wins selling new too-small and "coffin" ready cars at a higher price.The blue collar customer who has been Ford's lifeblood since the early 20th century loses, and loses big.
Bill Ford's mindset is narrow, unsustainable and not in the best interest of the Ford Motor Company. He should resign.His grandfather's company needs to hold true towards providing solid transport from trucks to autos through producing products that people want to buy - not what Big Government thinks they should buy through economic coercion. If green cars are a part of the mix to be sold at a good profit margin, fine.
Shame on you, Bill Ford, and shame on those who prefer socialism and high taxation as a way to dictate philosophy. It has never worked, thus the Ford Motor Company will ultimately not work. Sell the stock, or gift it to the Sierra Club.
F stock has made a nice run up recently and will likely avoid the fate of GM and Chrysler. I'll call it a dead cat bounce, with the company not being able to compete with others down the road unless a new Chairman is of a different ilk.
posted by T @ 4/30/2009 12:49:00 PM
