1 of Ford's Biggest Problems Is About to Get Tougher. Is It Time to Worry?
Over a decade ago, one intriguing catalyst for Ford Motor Company (NYSE: F) investors was its potential growth in China. It was deemed a rapidly growing market that was intended to become a second pillar of financial results, standing next to North America.
My, how things change. Fast-forward to today, and Ford, as well as crosstown rival General Motors (NYSE: GM), have a big problem in China. Is it time for the automaker to take some extreme measures? Is it time to cut losses and flee? Let's dig in.
Entering China brought a long list of challenges for Detroit automakers, starting with the simple, such as understanding consumer preferences that were substantially different from those in the West. Sedans and other smaller vehicle segments were popular while massive, highly profitable trucks were not. Then you add the complexity that Detroit automakers were originally forced to create joint ventures with local Chinese automakers to enter the market, and the challenges mounted.
Source Fool.com
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