Monday, April 28, 2008

Kerkorian buys some Ford stock

From the NY Times we learn that Kirk Kerkorian, one of the more entertaining billionaire investors in this country, has decided to buy some Ford stock. I think this is a good idea. I think Ford will turn around faster than GM, because it has less baggage, particularly since it got rid of Jaguar. I think GM still has too many divisions and too many models. The Mercury division at Ford seems a little extraneous to me, but it's only one division. GM, meanwhile, still has GMC, for which there is only a corporate-politics rationale: having GMC means that Pontiac and other non-Chevy GM dealers can sell pickups and large SUVs, which are otherwise the provence of Chevy. GM eliminated Oldsmobile several years ago, but I think they need to trim a lot more before they can really be competitive. Ford doesn't have that burden. Good call on Kerkorian's part.

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