We expect management to bring capacity in line with demand by one million units, but question whether this will be enough, given continued declines in market share.
Ford will trail the industry in product age by third-quarter 2006. On average, Ford's product portfolio will be the oldest in the industry from fourth quarter of 2006 through the first half of 2008.
Investors should remain on the sidelines and mind our speculative risk rating. Share prices could remain volatile amid bankruptcy speculation until management is more forthcoming with refinancing and restructuring progress.