No Silver Bullet for Ford

Competitors in North America that have been transplanted from foreign markets, like Toyota (TM Quote) and Honda (HMC Quote), have invested in smaller, more fuel-efficient vehicles that have gained favor with consumers. Meanwhile, as they steadily gain market share, their labor costs are lower, because their workers are not unionized, and they're not burdened by heavy debt loads, rising health care costs and giant pension costs.

Ford has $141.7 billion in long-term debt on its balance sheet, and its pension and retiree benefit plans are underfunded by about $46 billion. With $22 billion in cash, the company doesn't face the threat of a near-term liquidity crisis, but analysts say the competitive threat still looms large.

"Although upcoming restructuring initiatives involving a health care agreement with the United Auto Workers, plant closures, and continued downsizing of Ford's white-collar workforce could provide a short-term boost to the company's stock price, the already tough conditions in the North American auto industry aren't likely to let up anytime soon," said Morningstar analyst John Novak in a recent research report.