FT News Briefing Ford to scale back China investments
May 16, 2023
Ford is dialing back investments in China as local EV competition heats up, leading to investor unrest over record share buybacks. Meanwhile, Greece’s economic recovery is highlighted, but not everyone is feeling the benefits. The tourism and construction sectors are booming, yet austerity measures have left lingering issues of debt and poverty. The discussion also touches on new UK food regulations that pose challenges for companies like Krispy Kreme, showcasing the complex dynamics of corporate strategy and economic health.
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Ford's China Challenge
- Ford's CEO, Jim Farley, expresses doubt about Western carmakers' ability to compete with Chinese EV rivals.
- Ford's market share in China has declined significantly, prompting a reassessment of their investment strategy.
Share Buyback Concerns
- Share buybacks, reaching record levels, raise concerns among prominent investors like Fidelity and Federated Hermes.
- Investors worry about uncertain benefits, short-term price manipulation, and a lack of long-term investment.
Greece's Uneven Recovery
- Greece's economy is recovering after the Eurozone debt crisis, with tourism and construction booming.
- Despite this, many workers remain worse off due to austerity measures and low wages.