Ford Won't Blink To Shutter Chinese EV Business If This Happens, Jim Cramer Thinks
Portfolio Pulse from Shanthi Rexaline
Jim Cramer praised Ford CEO Jim Farley's China strategy, acknowledging the difficulty of penetrating the Chinese EV market. Ford has been struggling in China, posting a $600 million loss due to increased EV investments. Farley plans to focus on a leaner business with higher returns in China.
May 18, 2023 | 12:48 pm
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NEUTRAL IMPACT
Ford faces challenges in the Chinese EV market, posting a $600 million loss. CEO Jim Farley plans to focus on a leaner business with higher returns in China.
Ford's struggle in the Chinese EV market is a significant challenge for the company. However, the CEO's plan to focus on a leaner business with higher returns could potentially offset the negative impact of the current situation. The score is neutral as the outcome of the new strategy is uncertain.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Ford's struggle in the Chinese EV market highlights the dominance of local players like BYD Company Limited, backed by Warren Buffett.
Ford's difficulty in penetrating the Chinese EV market emphasizes the strength of local players like BYD Company Limited. This could potentially lead to a positive short-term impact on BYD's stock price as it demonstrates the company's competitive advantage in the market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50