A new scandal with fugitive emissions and fuels – it's just a bit.
It's tempting to assume that Ford Carmageddon is a new "diesel engine" after Ford announced last night that "a handful of workers was anxious" about testing procedures for fuel economy and emission certification. Of course, Ford can get nailed. It's furiously trying to get-nailed less painful by announcing a killing action and self-reporting this debacle – well, "potential concerns" – to EPA and California Airswaters instead of covering it.
Ford may be obliged to pay fines and litigations. It – along with other automakers – has already caught a red-handed overstating fuel economy. No problem. She went through these failures. Volkswagen got through diesel gauge. Other automakers go through, or already settled, their own own dieselgates. Corporate crimes can be expensive.
Lowering car sales is harder to fix.
This scandal is just a dimple in comparison to Ford's global problem. Her car sales have been declining in Europe since 2008; they have actually collapsed in China over the past two years; and they have fallen to the United States in the last three years.
In addition to the disclosure of debasy testing last night, Ford also submitted its annual report (1
his joint ventures in China – is by far the largest automotive market in the world where GM sells more vehicles than in the US – peak in 2016 at 1.297 million vehicles, according to Ford's 10-K. But in 2018 Ford sold only 731,000 cars. Two-year decline of 44%.
Through all automakers, the number of cars sold in China has fallen by 4% in 2018, as the firm start has been eliminated by a sharp decline in the second half of the year. 2017 was a record year for the automotive industry. For Ford both years were Carmageddon. His 2018 sales were not much higher than his sales in 2012:
Ford sales of the US fell for the third year in a row.
In 2018, Ford sold 2.54 million vehicles in the US, according to its 10-K. It was the third year in a row when sales declined, resulting in a general decline to 5% of its peak in 2015. This puts sales in 2018 lower than it was in 2013:
CEO Jim Hackett, who Ford contributed in May 2017 from his Silicon Valley concert at Ford's Intelligent Mobility, runs around the media-and- The analysts of the chain, pitching his release-and-cut-down Redsign Fitness plan, after his predecessor flagellated t arms wildly, throwing his own release-and-cost-reduction plan turn-around before getting released. These plans consist of writing off billions of dollars.
The idea of Smart Mobility, the former concert of Hackett, is to compete with Uber and Google, as well as many other things. The unit of houses, among other things, is a self-driving enterprise and a jewel called Chariot Traffic, an app-based shuttle service Ford acquired in late 2016. In time, it ran a few vans around San Francisco to bring people's boats between residential areas with workplaces with technical workplaces. He then expanded to other cities and countries. He competed directly with city buses. A month ago, a high-tech enterprise was shut down.
The long-term decline of Ford of Europe
When the Eurozone went through the financial crisis and its subsequent Euro-debt crisis, Ford sales deteriorated by 37% between 2008 and 2013. In 2018, sales rose to 1.44 million cars. A feat for a company whose global sales collapse. But these 2018 sales were still down 16% since 2008:
Ford global car sales dropped 10% in two years
Ford sells vehicles around the world, in North America, South America, Europe, Russia , Turkey, throughout Asia and the Pacific, the Middle East and Africa. These "Total" sales of companies reached the maximum in 2016 and since then decreased by 10% to 5.98 million cars. It puts sales only above where they were in 2012 and 2011:
So just increase the price.
How does Ford try to keep its dollar sales off taking the same cool route to its sales unit? Rising prices. And the leaders boast of it to support the passing shares.
The rate they cast is the average price of the deal – the price at which the car is sold to consumers after the trades. In the fourth quarter earnings call, Executive Vice President James Farley, Jr. Bragged about "double-digit increase in transaction prices for the last quarter" for Escape and Focus models; and CEO Hackett boasted that pick-up prices are "about $ 2,000 above the average."
Increasing prices to reduce volume to conceal a decline in volume is not an elegant decision for a long term. 19659002] In August last year, Moody's reduced Ford to Baa3 with a negative outlook. This is the lowest rating for Moody's rating (this is my credit rating scale for the three major US rating agencies). Moody has eroded Ford's global business position and the challenges it faced with implementing its "Redesign for Fitness" program, which costs about $ 11 billion. Ford's problems, so it is trying to keep its unchanging markets, increasing prices and other things to convince rating agencies not to reduce it to garbage.
But the real problem is the sale of Ford cars.This is the basis of its activities.the fact that Ford seems to be unable to find any -which buyers for their cars in It's that in the United States, its sales have fallen over three years, and that the decline in Europe now lasts for more than a decade: it's a real Ford Carmageddon, not an evolutionary emission and fuel scam, for which it will hit the bucket. But with these kinds of reductions in car sales, year after year, luck.
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