The factors in favour of a drop in the Ford share price:
As you can probably imagine, the Ford group does not only have strengths and also has weaknesses that you should also be aware of before you start trading this asset. Here are the negative elements that can influence the price of this share and therefore the main weaknesses of the Ford company.
First, it should be noted that the Ford group has a limited overall scope of its production network. Ford's network of production facilities is particularly limited compared to the networks of some of its competitors such as the Toyota group. The Ford group has closed several of its production units in Europe in recent decades, which has further weakened this network. This lack of geographical distribution of its production naturally leads to significant export costs that are reflected in the selling prices of the vehicles in this group.
Another disadvantage for Ford's profitability also concerns the higher costs it faces, compared to the more affordable costs incurred by its competitors. Here again, Japanese competitor Toyota has the lowest costs compared to Ford, particularly in terms of innovation processes. Moreover, Ford's ability to innovate, hampered by these high costs, is therefore slower than that of its main competitors and does not allow it to react quickly and effectively to new or emerging trends and market needs, even though the company has increased its efficiency in this area in recent years.
Finally, the last disadvantage of the Ford group concerns competition in general and in particular European competition, which has been booming in recent years. While Ford is still very well positioned on the American market, the European market is slipping away and its difficulties are becoming increasingly severe. In the long term, this could pose a problem for the overall profitability of this company.
As you can see, there are almost as many arguments in favour of increasing the price of Ford shares as there are in favour of decreasing them. These elements must therefore be analysed and compared carefully before any decision is taken on the trend to be followed. Of course, a full technical analysis will also be carried out here before drawing conclusions about future trends in this area.