Ford faces a weakening North American business, announcing earlier this year it would discontinue its sedan lines, and has struggled with global positioning in Chinese and South American markets. Moody’s said it could be years before the company’s turnaround plan has any effect on business.
“The fitness program is a necessity, but it will take several years for material financial and operating benefits of the program to be realized,” Moody’s analysts wrote, according to Bloomberg. “Success could be challenged by having to address the serious performance problems in multiple business units simultaneously.”
Ford officials remained optimistic in the face of Moody’s credit downgrade.
“Since coming through the Great Recession, Ford Motor Company has delivered year after year of solid financial results and operating cash flows,” a company news release stated. “The company has a strong balance sheet, which provides financial flexibility. We know we can capitalize on our strengths, bolster underperforming products and regions and disposition where we cannot make an appropriate return.”
More articles on business:
JPMorgan poaches top Google AI executive
Former Barnes & Noble CEO seeks $4 million in wrongful termination lawsuit
Amazon posted its 1st job listing 24 years ago — Here’s what it said
