The Headwinds Facing Ford

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino discusses topics across the investing world.

In today's edition, Isaac addresses the lingering concerns with the big automakers, spelled out in recent articles and an in-depth interview with Ford CEO Alan Mulally. Beyond the pension issues discussed by fellow Fool John Rosevear and the lack of enthusiasm for this sector spelled out by auto analyst Adam Jonas, Mulally identifies a third headwind facing Ford -- a declining middle class. For an iconic brand that helped bring the automobile into the mass market, the incredibly slow recovery in the broader economy counters the pent-up demand for vehicles. While Toyota seems poised for a more exaggerated rebound from recent setbacks, Ford must deal with slow growth going forward.

Over time, economies grow at different rates, and the U.S. economy has reached a mature, slower growth level. However, emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover these picks today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to click here to get your copy today!

Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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