No Follow-Through Rally For Ford After Leadership Change

The market optimism about the new Ford Motor Company F CEO Jim Hackett was short-lived. Ford shares initially jumped 1.3 percent on news last week that Hackett would be taking over the top leadership position from former CEO Mark Fields. However, since the day of the announcement, Ford shares have drifted mostly sideways and remain down 8.3 percent year to date.

Ford and the rest of the U.S. auto industry are having a rough go of it so far in 2017. Ford reported a 35-percent drop in net income in the first quarter of the year, and conditions in the auto market don’t seem to be getting any better.

In April, auto dealers were offering record-high incentives for buyers, but new vehicles were still taking longer to sell than at any point since July 2009, according to a report by CNBC’s Phil LeBeau. Even with an average dealer incentive of $3,499 as of April 16, J.D. Power reported new vehicles were sitting on lots for an average of 70 days before being sold.

According to AutoNation, Inc. AN, dealers have even been offering incentives of around 10.5 percent of manufacturer’s suggested retail price (MSRP).

To make matters worse for legacy auto makers Ford and General Motors Company GM, a new wave of competition in the auto industry is…

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