The American consumer displayed an undiminished appetite for automobiles in May, so long as Ford
I could make a quip about Ford investors requiring shock absorbers, but the struggling company's results should really not surprise anyone. Ford's profitability -- kind of an oxymoron today -- is hitched to trucks and pickups like the F-Series, but that particular line is years old and losing steam (down 11.7%) relative to the GM's Silverado (up 15%) and Toyota's Tundra (up 122%).
Reports have noted that Toyota sold more units than Ford in May, knocking big F into the number three spot. That should be the least of Ford investors' concerns. If the company does actually manage to improve profitability, it will have to come at the expense of a smaller footprint.
One other trend worth noting is the significant discounting that is going on in the auto group. Toyota hiked its incentives by 29% to an average of $1,140, and Honda
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Fool contributor Toby Shute doesn't own a car or shares in any company mentioned. The Motley Fool's disclosure policy can do 0-60 in 4.7 seconds.