Although Ford has established a good head of steam during the early part of 2010, the automaker's debt load could slow the company's momentum in the coming years. Ford paid $1.5 billion in debt interest last year, taking away funding from its future vehicle projects.
Ford's turnaround plan hasn't jumped off the track yet, but investors have become wary of the company's debt load and pending turmoil in the European market. Ford's stock hit a five-year high last week, but has stumbled over the last two days. "The business environment remains challenging," Ford CEO Alan Mulally said. "But we are committed to remain absolutely focused on our business plan."
Mulally added that investors should temper expectations as the company likely won't repeat its first quarter results throughout the year.
References
1. 'Ford's hurdle now...' view
