Merrill Lynch: Ford to gain U.S. share, may overtake GM

Posted: Jul 16, 2009
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A report released by Merrill Lynch on Wednesday found that FoMoCo is expected to gain U.S. market share within the next few years as domestic rivals General Motors and Chrysler may suffer sharp declines.

Known as the “Car Wars” study, Merrill Lynch found that Ford’s gain in market share could pass GMs allowing Ford to post better than break-even earnings per share in 2010. The study found that Ford’s U.S. market share could hit 18 percent over the next four years, a rise of 3 percentage points.

“We continue to believe Ford is effectively executing on its restructuring plan, while bolstering liquidity, and view the results of our Car Wars study as further evidence that management is making all of the right moves,” Merrill Lynch analyst John Murphy said.

The study said that with U.S. annual auto sales at about 14 million units, GM’s market share would equate to 500,000 vehicles. “Chrysler’s product pipeline is dubious and likely to drive significant market share losses.”

- By: Omar Rana

Source: Reuters


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  • zermatt

    I refuse to buy from government controlled companies and I expect that there are many more that feel that way, too.

    You may ask, what about the investment that the tax payers made in these two companies? I was against it from the start from the standpoint of letting weak companies die is better then propping them up to let them die a slow death. There is little chance that we will see that money be paid back.

    Also, the thought that the government is using GM as a Green social re-engineering project is even less appealing. The market should dictate product development – not Big Brother.

  • Ivan Gutierrez

    Well said zermatt, well said.

  • Ivan Gutierrez

    Well said zermatt, well said.