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Ford Restructuring Efforts Seen as "Not Enough"

Many analysts think that Ford Motor Company may be lucky that U.S. markets were closed for Labor Day holiday recently, as Chief Executive Officer Bill Ford`s comments that the company is "in trouble" fueled a sell off in European markets unhindered by the federal day off. Ford Motors, which has lost 12 percent of its value in as many months, will announce its latest cost-cutting moves this month. There has been some criticism of recent Ford commercials and marketing campaigns, with spots being compared to Ford`s resorting to begging to get new customers and support for its overhaul.

Originally, reports stated that the company wanted to cut 30,000 jobs by 2012, but a new internal memo leaked to the press states that finances are such that Ford Motors wants to accelerate that timetable, though to what date has not been specified. In an e-mail to employees, Bill Ford said the company`s current business model can no longer sustain profitability, adding "we must change to a new business model that requires greater bottom-line contributions from cars and crossovers."

Yvan de la Fressange, who manages $181 million in the Gutzwiller One fund, including 250,000 shares of Ford, in Basel, Switzerland says "A turnaround for Ford is taking a very long time to materialize. The actions they`re taking now are the right ones and will probably work in the long term, but it`s going to be a hard road. The rise in oil prices really shot Ford in the foot because it`s caused demand for SUVs and trucks to plummet."