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Wed Oct 10, 2018, 08:57 PM

Backfire Economics: Ford Prepares For Mass Layoffs After Losing $1B To Trumps Tariffs

Carpe Diem
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Ford is the latest American business casualty in Trump’s trade war, as the automaker experiences significant collateral damage and deadly friendly fire from Trump’s trade tariffs. From Fortune:

Ford is having a bad year in 2018. Its stock is down 29% (see top chart above vs. +4.8% for the overall market year-to-date and bottom chart showing Ford’s stock price now at an 8-year low, the lowest level since the fall of 2009), and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.

Jim Hackett, Ford’s CEO, is working to engineer a $25.5 billion restructuring of the automaker, hoping to cut costs and remain competitive. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods. Hackett has said they have already cost the company $1 billion in profit and could do “more damage” if the disputes aren’t resolved quickly.

MORe...

http://www.aei.org/publication/backfire-economics-ford-prepares-for-mass-layoffs-after-losing-1b-to-trumps-tariffs/

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Reply Backfire Economics: Ford Prepares For Mass Layoffs After Losing $1B To Trumps Tariffs (Original post)
RCW2014 Oct 10 OP
freedumb2003 Oct 10 #1
RCW2014 Oct 10 #3
quad489 Oct 10 #2
Red Bull Oct 10 #4
TM999 Oct 10 #5
Lifelong Oct 11 #6

Response to RCW2014 (Original post)

Wed Oct 10, 2018, 09:05 PM

1. Your glee about misfortune contines

And I will lay a HUGE bet this will not come to pass.

As I have noted, your knowledge of economics is lacking to say the least.

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Response to freedumb2003 (Reply #1)

Wed Oct 10, 2018, 09:22 PM

3. Yes, I'll defer all economic expertise to you "freedumb2003", all wise and knowing one.





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Response to RCW2014 (Original post)

Wed Oct 10, 2018, 09:06 PM

2. ''tariffs imposed by President Trump have reportedly cost the company $1 billion''...sure it has...

...especially when one considers all the hundreds of billions FORD has saved over the last few decades by sourcing components from foreign suppliers and assembling vehicles in other countries like Mexico and Canada.

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Response to quad489 (Reply #2)

Wed Oct 10, 2018, 09:31 PM

4. Add to that the lower corporate tax rate

Ford is just playing the game to try and get the best deal they can. Nothing more and nothing less.

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Response to Red Bull (Reply #4)

Wed Oct 10, 2018, 10:59 PM

5. Exactly.

They are using the emotion card from the left's play-book to generate 'sympathy'.

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Response to RCW2014 (Original post)

Thu Oct 11, 2018, 07:33 AM

6. Good paying jobs too.

Righty calls this winning.

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