The US automaker’s market value is near levels last seen in 1999, allowing the company to come closer to its historical peak than the world’s biggest automaker, Toyota.
Just yesterday, Ford traded at a market capitalization of more than $70 billion, a level seen only three times over a period of 14 years. That left the second-biggest US carmaker just $6 billion short of its high achieved in May 1999. Toyota was $30 billion short of its $254 billion pick attained in February 2007.
“Not only is Ford challenging their own previous peak and are closer to it than Toyota, but Ford is competing with Toyota the way it wasn’t before,” said Kevin Tynan, an auto analyst for Bloomberg Industries. “It’s a competitive landscape that Toyota really hasn’t had to deal with in maybe 15 years.”
Ford’s increase is also a sign of faith for the strategy designed by CEO Alan Mulally. The executive renewed yesterday the company’s plan for him to stay as CEO through at least 2014. Still, Microsoft board members have reportedly discussed with Mulally about making him the company’s next CEO, according to people with knowledge of the negotiations.