Is the Mustang coming to its end.
The Ford is in dire state and its present CEO Alan Mulally is pulling out all stops to pull out this billion dollar company from the red zone.
Although it has been just two months that Alan has taken over as CEO but the company is working tirelessly to implement his 4-point agenda which was firstly to align the infrastructure in such a way so as to build as many vehicles as is the demand.
Secondly to accelerate the product development by integrating the research divisions which are at present scattered all around the world.
Thirdly to have money in coffers so as to execute plans and fourthly to integrate ford team worldwide so as to make it a collective effort in saving Ford.
But the analysts at Wall Street are skeptic and are saying they dono’t think these steps will be enough to save Ford.
No auto analyst is suggesting investing in ford shares and an automotive analyst with Bank of America, Ronald Tadross says,
‘They’re going to fail themselves and their investors if they don’t restructure at an equal or even greater pace.”
He believes that it ford will easily miss its years targets. He and other analysts said that very point that the Ford losses will put the company back by a $1 Billion. They further believe that Ford should be more open with it restructuring plans so as to gain the confidence of the investors.
The Ford announced that 38,000 workers have accepted a buyout and the also revealed an $18 billion financing package which was raised by collateral of company’s assets.
What is going to happen will be known in months to come but it has become a Battle of survival for this 93 year old company and a ‘Do or Die situation for its CEO Alan Mulally.
If Alan pulls this one he should be rest assured that his name will appear in Hall of fame.
Via: Freep
