Ford Faces Yet Another New Threat: Is It Time to Panic?
Ford Motor Company (NYSE: F) investors can't seem to catch a break. The company faces numerous challenges in improving vehicle quality (it's led the U.S. industry in recalls for three straight years), increasing electric vehicle competition and price wars, emerging well-built Chinese EVs, and now a Japanese alliance among automakers hoping to advance their position in the global EV market. Let's dive into what's happening and how Ford plans to respond to the new challenge.
Most investors have rightly turned their focus to emerging Chinese companies that are well-kfunded, produce well-built EVs, and are planning to expand globally. Global automakers and governments are taking the Chinese EV ambition very seriously, with Europe introducing stiff tariffs to help protect domestic automakers while they work on bringing price and costs down to a more competitive level.
The United States is also considering tariffs, though depending on upcoming policy adjustments and potential presidential election ramifications, it's possible Chinese EV makers could produce vehicles in Mexico to avoid tariffs sooner, rather than later. But there's now a new threat, and it comes in the form of a recent Japanese automaker alliance.
Source Fool.com
