News Ticker

Ford Warns ‘Used Car Prices Will Drop For Years’

IMAGE: Terapeak.com

By Tyler Durden | 23 March 2017

ZERO HEDGE — Earlier this morning we noted Ford’s “CFO Let’s Chat” meeting with analysts before which Ford announced weak 1Q adj. EPS guidance of 30c-35c, coming in well below analyst estimates of 47c, which they blamed on higher costs, lower volume & unfavorable exchange rates.

With the call now concluded, here are a couple of the key takeaways:

First, the bad …

  • Volumes will start to fall off this year, next year
  • Used car prices will drop for several years
  • European profit will fall this year
  • China sales down sharply in 1Q
  • India more difficult than expected
  • All options on table including traditional restructuring

…and the good-ish …

  • Favorable market factors offsetting higher commodity prices
  • Inventory levels “in very good shape”
  • Sedans play diminishing role in U.S. business; SUVs, trucks make up 73% of U.S. business
  • Not seeing anything to suggest economy will “tip over”

And while Ford is confident they’re not seeing “anything to suggest the economy will ‘tip over'” (which is good, right?), their own presentation slides would seem to paint a slightly different picture. […]

Be Sociable, Share!
  • 200 Years Together

    Used cars will retain value more as people stop buying uncle scam fitted pieces of junk and start retrofitting older vehicles with actual after market working parts and not OEM spyware.

Secured By miniOrange