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Investors are taking Ford Motor Co.'s unexpected decision to replace its CEO in a bid to revive its slumping share prices with a pinch of salt, as they remain skeptical that the move will shore up the firm's performance.
Shares of the U.S. carmaker advanced 2.1 percent on Monday, a comparatively subdued response given the 0.5 percent rally in the broad S&P 500 index. In the last 12 months, Ford shares have already slumped 16 percent due to worries of declining car sales and the threat of driverless vehicles to weaken future demand.
The S&P 500 index has soared almost 17 percent during the same period, while shares of Ford's competitor General Motors Co. and Tesla Inc. rallied by 8 percent and 41 percent respectively.
Analysts perceive there is no catalyst that can jumpstart the stock's rally. Gary Bradshaw, an analyst at Hodges Capital, said the shift in company management will not provide a miracle cure for the structural problems the industry faces. He said the situation is the same for GM, which unlike Tesla does not have a car that can generate a hype.
Another commented that Ford's CEO change is not a likely impetus for the stock to surge, as the firm has not made an effort to keep up with innovation and as the sector faces long-term headwinds.
