While almost everyone is talking about the financial sector meltdown, share prices of auto makers of US have nose-dived to new lows. Ford motors in particular have reached to 4 $ per share from 16 $ per share in 2004, i.e., 75 % fall in 5 years span.
While the entire focus is on financial sector, US auto-makers like Ford are bleeding. Ford is making losses every quater. Consumer spending in US is on a major decline and unemployment at its peak. Sale of cars have reached 15 years low in Spetember month. Banks are not giving loans easily to consumers for cars or for that matter for anything (homes, education,etc). With liquidity to remain a major issue in coming months, condition of Ford is going to only worsen.There is a slowdown in Global economy too. Hence exports will also fall. Plus Ford has being outsmarted by Japanese automakers - Toyota and Honda.
Ford - the legendary auto company and a symbol of american economic pride may go the Merrill way given the present scenario. Will the US Government nationalise it too?? Or will it fall into hands of foreign Automakers like Toyota or Honda?? Or worst scenario, will it go the Lehman way??
Well certainly chances of surviving are dim for Ford and its fate will be decided soon. With fall of Ford along with ending of I-Banking model, capitalism will surely see its defeat.
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