Ford Motor’s stock hit the lowest level since 2009, when Thursday, July 12th, it dropped more than 2% and closed at $9.13.
December 14th, 2009 was the last time Ford’s stock closed this low at $9.08. During the first quarter the company lost hundreds of million in Europe and loses are expected to be even higher in the second quarter. Analysts believe that Ford has to make adjustments quickly, such as focusing on stronger markets and boost investor confidence.
Ford’s shares were as high as $13.05 in January 2012 but continued to steadily decline until they reached $10 and remained at that level for more than two weeks, closing at $9.13 on Thursday, the lowest since 2009.
Federal safety is currently probing 83,000 2011 Ford Explorers due to occasional failure of the power steering. If this will end in a vehicle recall, you can bet shareholders will pay close attention to this and the company will have to prepare for a direct financial impact. Due to the troublesome situation in Europe investors won’t be excited about Ford’s increased investment in vehicle and engine production in Romania. Ford invested over $836 million in the Romanian facility that will manufacture the Ford B-MAX and the 1.0 EcoBoost engine.