Another Ford Recall: Is CEO Farley on His Last Legs?

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Transcript:

[00:00:04] Doug Mcintyre: So Lee, we’ve got another Ford Recall. Yeah. 270,000 Lincoln Navigators and Ford Expeditions. The Ford family and Farley, the CEO said to the Wall Street Journal two, three years ago that. The, that was the big monkey on their back recalls and that they were getting hit with these huge charges, every quarter.

[00:00:26] Doug Mcintyre: And they still are. The problem is, that hasn’t gone away. The CEO keeps saying, we’re gonna fix it. We’re gonna fix it. The CFO says, Oh, we’re sorry. We have several hundred million dollars in charges this quarter because of, and it just goes on. It’s another example of why this is the worst run big car company in the world by far.

[00:00:49] Doug Mcintyre: And Bill Ford and the Ford family, they won’t get rid of Farley. It’s a joke.

[00:00:54] Lee Jackson: Yeah, it’s funny, they’ve never been shy about getting rid of good CEOs in the past or bad ones, so I don’t know why they wouldn’t be prepared to make a move. Now,

[00:01:05] Doug Mcintyre: the only CEO they had, it was any good under Ford’s tenure was Alan Mulally who came up, right?

[00:01:11] Doug Mcintyre: Boeing, and he was great. Everybody else, bill Ford has put into those jobs. they’re just jokers. It’s and that’s why there’s churn. It’s time to churn this guy out. Yeah. And hopefully find somebody who can look, I know it’s a big company, but you’ve got to be able to get product quality.

[00:01:29] Doug Mcintyre: And I always wonder how is it that if your number one goal is the quality of your products, why can’t you get, Just get to the level GM’s (NYSE: GM) at, you don’t have to get to Toyota’s level, just,

[00:01:43] Lee Jackson: Yeah, absolutely. like we’ve talked about to our viewers and readers for some time now, they dominate truck sales in the United States and there’s, I have now determined there is 8,000 different versions of the F-150 and two 50 and holy cow, I mean there’s the King’s Ranch.

[00:02:02] Lee Jackson: There’s this one, there’s that one, focus on your key products. And again, I think you mentioned, that the recalls were for navigators and, big SUVs. It’s who in the heck owns the a navigator anymore?

[00:02:19] Doug Mcintyre: They’re used as limousines now that they’ve discontinued the old town cars, which, I don’t get.

[00:02:25] Doug Mcintyre: The town car seemed to me to be a perfect both family sedan and. Yeah. And

[00:02:31] Lee Jackson: fake. Yeah, absolutely.

[00:02:34] Doug Mcintyre: So if you’re a billionaire and you have a driver taking you around and a navigator, I think you’re gonna take think twice. Maybe you need to get an Escalade,

[00:02:43] Lee Jackson: I guess so. there’s one thing for sure is that, he may be on his last legs regardless of what Bill Ford says, because you know there’s gonna be a point when the board starts banging the table.

[00:02:55] Doug Mcintyre: Yeah, so anyway, it’s, I don’t want to beat a dead horse ’cause we get to do it all the time. But it’s just another example of why Ford is, the worst of the big car companies and we harp on it over and over again. But unless you change management, you’re not going to, What’s that old saying? You keep repeating something,

[00:03:16] Lee Jackson: Oh, the, definition of insanity.

[00:03:18] Doug Mcintyre: Yes. Yes.

[00:03:19] Lee Jackson: Expecting a different outcome.

[00:03:21] Doug Mcintyre: Yes. Okay. Sorry. There we go. So

[00:03:23] Lee Jackson: I think that’s about right. All right. We’ll, keep an eye on this. The one thing that our, viewers should remember is, it’s not going to zero, but it’s likely a value trap. And you’ll get in there thinking, okay, I got a big dividend, and it can go higher and it’ll sit there and trend lower and so I’d be careful with that one.

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