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