Ford Blames Europe for $1 Billion Loss
It seems that more and more companies are blaming Europe for their troubles. And Ford (NYSE: F) is no exception.
The company’s shares are already tanking, trading at their lowest point since December 2009. And although it was able to beat Wall Street’s forecasts this quarter, the company says it could now lose over $1 billion thanks to, of course, the crisis in Europe.
To Ford’s credit, though, Morningstar analyst, Dave Whiston, is also blaming Europe for any losses Ford’s going to suffer…
“There’s just a lot of over capacity [in Europe] and I think at some point Ford is going to have to close a plant. The problem is unions are extremely rigid in Europe. They are even more hardline than they are in the states… Europe is going to be a real drag on the whole… at least until the end of this year and probably until the end of 2013.”
Whiston also believes that Ford’s stock could come back fairly easily from its current slump…
“There is nothing really in the stock that makes me think the value is permanently impaired here, especially in the U.S. – that business is doing really, really well.”