Bridger PenningtonFund Launch & Investment Expert

These Companies Won't Survive | Bridger Pennington

18 Jan 2024 · 0 min

Watch on YouTube

0:18

In this brief commentary, the speaker cites a Wall Street analyst who, based on the price‑to‑earnings (P/E) ratios of Ford and General Motors, predicts that these major U.S. automakers are unlikely to remain viable beyond the next four to five years. The speaker also argues that recent aggressive union negotiations, while delivering short‑term benefits for workers, could ultimately lead to widespread job losses if the companies fail to sustain profitability.

Right now, Ford, GM, those car companies, there was a Wall Street analyst looking at their companies like, we don't believe these companies will survive for the next 4 to 5 years. That's what their P/E ratio is telling the market. We don't believe this company is going to last more than 4 to 5 years. These unions have negotiated so hard that, yes, they won in the short term. They will then lose all their jobs in the long term.