Is Ford Going Out of Business?
According to publications like Detroit News and CNBC, the Ford Motor Company profits have seen a slimming trend. Even before adding predicted loss projections due to the COVID-19(coronavirus) outbreak, Ford had projected one of its lowest revenue years in a very long time. Now, with the release of a 2021 F-150 and the new Ford Bronco on the horizon it’s all up in the air. Is Ford going out of business?
In fact for at least the last three years, Ford’s finances have been said to be in decline. Especially after the Ford Explorer debacle. How will this massive change affect Ford’s ability to stay afloat? Is there even any truth to it?
“The Detroit Three posted sales declines of more than 30% in the second quarter as the coronavirus pandemic raged through the United States.”
Detroit News | June 2, 2020
2020 sales numbers in decline
According to Detroit News, Ford Motor Company’s sales saw a 33% decline in the second quarter reports. Finances appear to teeter on the brink of failure. Yet one Arizona Ford dealer claims that incentives such as 0% for 72 months.
For another dealer in Dearborn, MI––according to Detroit News––sold 265 new vehicles in June. This is a record month for the dealer, who allegedly believes that “incentives and pent-up demand helped lure would-be buyers back to the showroom.” This looks far from numbers that would show Ford going out of business.
Apparently, dealers have hope after the rocky start to 2020. Solid business plans and long-term projections are keeping spirits––and sales––up. Dealers are prepping for releases like the new Ford bronco. In addition to incentives and the like, there is also the sudden increase in demand for new vehicles for cross country road trips during a time when the fear of flying and social distance measures are inspiring families to hit the road at record rates.
Ford won’t give up
Though it may seem that Ford won’t give up, the US auto company is like the American Daimler-Benz. It’s been around since the bloom of the American auto industry, and I think it’s fair to say that the corporation isn’t going to give up so easy. In some Detroit News press from earlier in the year, there was talk of how the company would surge ahead, with eyes on redesigns, hybridized additions to familiar models, and electrification to keep up with the modern movement.
By 2024, we may see a very different version of the FMC. The release of a few new models coming up soon is churning up some pretty good excitement. It’s going to be interesting to see how sales of new models such as the all-electric Mustang Mach-E SUV, the off-roading Jeep Wrangler fighter the all new Ford Bronco SUV, and a redesigned F-150 pickup truck. Massive investments are being poured into plants in order to gear up for production.
What will the future look like?
Ford Motor Company has been rumored to phase out US production, aiming toward a more global market. But how can that be true? With new releases of all new vehicles to Ford’s line up, it seems as if that’s not the case.
Ford has seen plenty of financial bumps and bruises in its past. These have healed with enough rapidity to keep Ford in the leading position. But will it last? We don’t know. We can say this: today, Ford is not going out of business.
