What does Ford have in common with your unemployed cousin? Probably more than you think.
Ford’s been in a financial hole for a while. A new CEO was brought it to turn the ship around, and under his direction a bold new plan to pretty much ditch cars for North America was launched. Also in the works is a restructuring for the automaker that could take several years to fully implement. All of these factors were in play when Moody’s Investors Service recently downgraded Ford’s credit rating to one level above junk, per a Bloomberg report.
Moody’s didn’t have much positive to say about Ford. It indicated the severe downgrade in credit rating was from the automaker’s sliding “global business position.” It also talked about the difficulties of restructuring the company so dramatically, stating the effort could cost up to $11 billion.
Naturally, Ford’s downplaying Moody’s assessment, point out it didn’t enter bankruptcy during the Great Recession, unlike GM and Chrysler. That might be the case, but things don’t look pretty now that the economy is growing. That’s ironic.
There is a ray of sunshine for Ford fans. Apparently, feedback from customers convinced Ford to not go ahead with the Mach 1 name for a performance all-electric SUV. Many people felt it was a slap in the face for the legendary Mustang.