Jim Cramer discovered a curious disconnect with the auto industry and wondered if it could be a sign of an impending recession.
For months, the stocks of automakers have been crushed, even as car sales have reached record levels. Cramer thinks this could be due to investor fears that the industry could be peaking in the United States.
To gain further insight, he spoke with Ford Motor Company CEO Mark Fields. Ford just reported a very strong quarter, but the stock is down 18 percent for the year.
“We think people are underestimating the health of the U.S. industry.”
“If you look at the data, we do think we are undervalued. We think people are underestimating the health of the U.S. industry,” Fields said.
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The CEO added that he believes investors are underestimating the financial performance, improvement of Ford’s international operations and its product lineup.
“We are going to stay really focused,” Fields said.
The company’s game plan is to focus on expanding its margins, minimizing the business’ risk and rewarding shareholders.
“And those things drive value, eventually,” Fields added.
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