The (Ford) Gods Must Be Crazy

Has Ford’s management lost its mind?

While GM and Chrysler are considering a shotgun marriage and Toyota is exporting trucks out of the US, Ford has put 1,000 laid-off truck-workers back to work at its Dearborn, Michigan F-150 plant. What’s going on?

Last quarter consumer spending fell dramatically, and there are many indications that the economy is in a recession. But Ford is tooling back up. Maybe they figure that lower gas prices will spur demand. Or maybe they know something we don’t. But their expansion comes at a time when most analysts predict a significant contraction in the light truck market.

If Ford is right and the economy recovers quickly they’ll have trucks to sell while everyone else is tooling back up. But if they’re wrong and the new trucks just sit on the lot, they don’t deserve any of the bailout money.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-04T14:28:40+00:00 November 3rd, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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