The stock price is more closely affected by the financial related conditions of the company than the reliability ratings or other subjective ratings of their cars. All of the Big 3 are still saddled with huge pension and payroll liabilities that the other car makers do have. The expenses related to these liabilities affect Ford's bottom line (profit) but the foreign manufacturers don't have these legacy liabilities and so can remain more profitable.
BTW if you feel strongly that Ford has a strong build quality and will recover from the current reorganization then now is the time to buy the stock when the price is low and sell the stock once it goes up.
I have known just as many who have horrible stories related to bad honds and toyotas they owned as I have people who have bad stories about the Big 3. Do what you feel is right.Why does Ford stock continue to drop even when positive feedback is advertised?The issue is Ford's sales volume -- not its quality. Almost all auto companies are approaching the same quality. So, American auto manufacturers are just as good, if not better, than Japanese manufacturers. (albeit a lot of Americans do not believe it.. but remember the early Japanese cars in the early 1970s.. they were just tin boxes with no quality.. how fickle we Americans are.)
The Stock market is reacting to Ford's weak auto and truck sales. For years Ford coasted along on its F150 and Ford Explorer sales ... both of which were phenomenal because Ford could sell all they could produce and made lots of $$ on those. (They had lots of production capacity for both and could sell all they could make). Ford lost $ on most other car lines.
Well now the F150 and Explorer sales are weak primarily because of the cost of gasoline.
So, Ford's product mix is not what the market is wants right now. It take years for Ford (or any Auto company) to make changes to a product mix because it takes years to design a new vehicle. Then Ford's designers have to guess at the future market and design a vehicle that the market wants.
For instance a market never really developed for the small Mercury Cougar. Additionally, Ford may have made a mistake when the Ford 500 lost its way by keeping the old Taurus alive and essentially was competing with itself (the 500 and the Taurus served the same market) -- this is the reason they are re-naming the 500 to the Taurus now that the old design is gone.
So with declining sales Ford had more employees than it needs and more manufacturing plants than it needs. This is the reason for all of the plant closing and the layoffs..
Ford has some great products and is designing more. Hopefully its product mix will turn its sales around and it will be profitable in the near future.Why does Ford stock continue to drop even when positive feedback is advertised?
Ford is LOSING BILLIONS because toyota brainwashed the public to the stereotype that all Toyotas are good when there are plenty of better cars. I am a GM fan, but I would rather see Ford doing good than Toyota. GM is pulling out of debt and their stock is going up and has a rating of "buy", Ford is losing money and sales so their stock is rated at "sell", Toyota is still doing good, but as soon as people realize American companies can make just as good or better vehicles for less they will be ruined.Why does Ford stock continue to drop even when positive feedback is advertised?A toyota warranty has less use than a ford warr.The engineers find more UPDATES in ford parts after there sold,Than toyotas. What sells for more a 100,000 toyota or ford? Until the brains at ford spend more money on engineers than advertising there might be a change.
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