We are moving Ford Motor shares to a Sell as the turnaround is not working under the current CEO. Promises of improvement haven’t converted into reality and we currently see little chance of this happening with current management team. Automotive operating profits continue to decline even at the top of the cycle and nearly all performance metrics including revenue growth, market share and EBIT margins, are moving in an unfavorable direction. Ford’s Automotive guidance outlook indicates more weakness ahead. While Ford Credit remains very healthy, any slowdown could threaten the dividend and exert pressure on the barely-investment-grade credit rating.
