Not true. These days layoff announcements usually cause the stock price to increase. The thinking is that with a lower payroll profits will improve, at least in the short term.
GM just announced how many cuts. Oh yeah closing 12 plants. And about 30k jobs. I think GM maybe in a lot worse shape than Ford. If they keep dropping like this. Ford will stay at #2.
The way things are going right now Chrysler may end up as number 2... I see the American car manufacturers pretty much self destructing under the weight of their own greed. Seems like few in the American car industry are willing to change with the times to remain competitive in the global market.
Part of the problem is the business practices of fleecing the buying public on a new car, Uniform pricing should be the standard but with the exception of maybe Saturn you have to be a master negotiater to feel like you got a good deal on a new car. That said, the American auto industry makes a horrible case for "buy american" with their assembly plants in mexico/canada. Verry few americans see any distinction between a Toyota assembled in Kentucky vs a Dodge assembled in Mexico.
I think they're getting just what they've worked for. I ordered my Stang almost 6 months ago and have yet to see it. I see lots of loaded up dealer stock popping up in inventories on FordDirect.com, nothing that I want to buy though. And I know that I'm not the only buyer waiting for what they ordered. If they'd actually build what the buyers have already ordered instead of loaded up-optioned dealer stock, they'd already be a few units ahead of the curve. They've still got ole Henry's mentality about "you can have any color you want, as long as it's black" going on there. They need to build what the customer wants first. Case in point: The dealer I ordered with , got in a Tungsten Grey GT, two months ago and has yet to sell it. I told the sales manager last week, "you should have seen that they built mine first, you wouldn't have been watching this one sit on the lot all this time" WAY TO GO, FORD!!!!!!
GM just announced how many cuts. Oh yeah closing 12 plants. And about 30k jobs. I think GM maybe in a lot worse shape than Ford. If they keep dropping like this. Ford will stay at #2.
Ford is not in any better shape than GM. You're forgetting that Ford will announce its latest restructuring plan in January which will include more layoffs and plant closings.
Unfortunately laying off UAW workers does little to help GM or Ford because they go into the jobs bank and they still get paid almost 90% of their working pay.
Both Ford & GM are now neck deep in dog doo-doo. The only way out for both of them may be to declare bankruptsy and start over.