Post bad second quarter result, Ford Motor announced that US is going through Car Recession which impacted its share price dearly with around 17% in 4 session. In July both Ford and GM failed to show growth in car sales and struggling for the last few months. The recent recall of around 830 K vehicle with side door problem also impacted Ford image.
Interesting on the other side,
Tata Motor who bought Jaguar and Land Rovers from Ford Motors is showing extra
ordinary growth in US. Since Tata communications bought these two brand, these
brand became the backbone of Tata Motor while it struggle in domestic business.
It clearly indicate that precise
vision and calibrated execution is very important to ensure that one don't get
trapped unaware.
I believe that it's not late for
both Ford and GM to realign their business and send a clear signal to their
union that it's the best interest of the organization if ecosystem player works
seamlessly by keeping the financial benefits at the sideline. If they fail to
do so then it's not far away when they will be needing government assistance
