Bill Ford asks shareholders to be patient about lag in share price

Article by Anita Panait, on May 13, 2013

Bill Ford, the executive chairman of Ford Motor Co., urged shareholder to exercise more patience as he responded to two questions about the carmaker’s lagging stock price during the company annual meeting. It should be noted that while Ford has logged 15 profitable quarters in a row, its share price has lagged the S&P 500's gains for around two years.

As of afternoon of May 9, 2013, Ford’s stock carries a price of $14.22 apiece. During the annual meeting, Ford and company chief executive Alan Mulally highlighted record profits and margins and a turnaround plan in Europe. The carmaker, however, expects to post $2 billion in losses in Europe this year due to the current economic crisis in the region.

Ford Chief Financial Officer Robert Shanks urged shareholders to take a long view of the carmaker’s growth outside the United States. According to Shanks, heavy investment in Asia would start to bear fruit and allow Ford to depend less heavily on the US market. During the meeting, it was proposed to take away the Ford family of its 16 votes per share.

Around 33.4 percent of votes were in favor of the proposal, which the carmaker had opposed. In 2012, 29.5 percent voted for the proposal, according to Ford spokesman Jay Cooney.

Bill Ford, who is the great-grandson of founder Henry Ford, remarked that the family vote and ownership position allowed the carmaker to stay focused and “not get distracted and survive and ultimately thrive." During the meeting, Ford’s shareholders approved the board's recommended directors, executive incentive plan and expressed support for executive pay. Around 70 shareholders attended the meeting held in Wilmington, Delaware.

Topics: ford, shares

If you liked the article, share on:

Comments

Recommended

South Korean carmaker Kia will try to follow up the success of its Sportage compact sports utility vehicle by introducing a smaller SUV (subcompact) in the United Kingdom in the...
by - October 18, 2017
It can no longer be denied that Jaguar Land Rover wants to design some more hardcore type versions of their SUV range --- soon after launching the Discovery SVX only...
by - October 18, 2017
Motorists in the United Kingdom who intend to purchase the new 2018 Hyundai Kona subcompact sports utility vehicle could start placing their orders on November 2, 2017. Marked by Hyundai...
by - October 18, 2017
For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries