Quick Thought About the Ford Business Plan

I am not trading the automakers right now - there aren't any compelling misvaluations relative to the other industries where I am doing research. Plus, it is just too sad.

At least Ford is presenting a business plan now. This tidbit is discouraging:

Based on current business planning assumptions – including U.S. industry sales for 2009, 2010 and 2011 of 12.5 million units, 14.5 million units and 15.5 million units, respectively – Ford expects both its overall and its North American automotive business pre-tax results to be breakeven or profitable in 2011, excluding any special items.

There is no way that vehicle sales are higher in 2010 and 2011. I believe that anyone calling a bounceback/rebound in most sectors is wrong. Of course, F has to say it I'm sure otherwise their models would look even more hopeless.