Ford Warns “Used Car Prices Will Drop For Years”
by Tyler Durden
ZeroHedge.com
Mar 23, 2017
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”
The Rest…HERE
