An under-reported point mentioned in the earnings call last week was that Ford put the South America operations "on review".
Sounds like that review is reaching to some conclusion soon...
DETROIT, May 9 (Reuters) - Ford Motor Co shareholders should expect “fairly large” changes in the coming year, Executive Chairman Bill Ford Jr. told Reuters, building on the automaker’s moves to discontinue some North American models and boost electric vehicle investment.
The automaker has promised to cut costs overall but still faces questions about lagging performance in certain regions and calls for more details on its restructuring. Its shares tmsnrt.rs/1Nxqa9k have barely budged since Chief Executive Jim Hackett took the helm last year.
“It could be regions, it could be functions, it could be areas of emphasis,” Ford said in an interview. “We’ve done some big things, and we still have some big things to do.”
The automaker lost $4 billion in South America from 2013 through the first quarter of this year, and its chief of global operations said in January it was “exploring every option you can imagine.”
Analysts have also urged an overhaul of European passenger car operations to help Ford reach its 8 percent pre-tax profit margin goal.
Bill Ford said the automaker will be able to use cost savings to return cash to shareholders, invest in new technology and businesses and fund restructuring.
Reading between the lines, I'm guessing Ford will be selling its South American operations to someone... but who? Perhaps one of the Chinese car companies.
Edited by bzcat, 09 May 2018 - 03:21 PM.