| From: Glenn Petersen | 9/21/2022 6:24:38 AM | | | | | | Ford stock suffers worst day since 2011 after cost warning, shedding $7 billion in market value
Published Tue, Sep 20 20222:21 PM EDT
Updated 4 Hours Ago
Michael Wayland @MikeWayland
CNBC.com
Key Points
- Ford Motor's stock suffered its worst day in more than 11 years.
- Shares of Ford closed Tuesday at $13.09 apiece, down by 12.3%.
- The losses come after the automaker pre-released part of its third-quarter earnings report and warned investors of $1 billion in unexpected supplier costs.
DETROIT – Ford Motor's stock suffered its worst day in more than 11 years, after the automaker pre-released part of its third-quarter earnings report and warned investors of $1 billion in unexpected supplier costs.
Shares of Ford closed Tuesday at $13.09 apiece, down by 12.3%. The Detroit automaker lost roughly $7 billion off its market value.
It was also the stock's worst day on a percentage basis since Jan. 28, 2011, when the automaker's fourth-quarter earnings disappointed investors and the stock shed 13.4% to close at $16.27 a share, according to data compiled by FactSet.
Ford, after the markets closed Monday, said supply problems have resulted in parts shortages affecting roughly 40,000 to 45,000 vehicles, primarily high-margin trucks and SUVs that haven't been able to reach dealers.
Despite the problems and extra cost, Ford affirmed its guidance for the year but set expectations for third-quarter adjusted earnings before interest and taxes to be in the range of $1.4 billion to $1.7 billion. That would be significantly below the forecasts of some analysts, who were projecting quarterly profit closer to $3 billion.
Ford cited recent negotiations resulting in inflation-related supplier costs that will run about $1 billion higher than originally expected.
While no major Wall Street analysts downgraded the stock in light of the update, several were caught off guard by Ford's announcement. Expectations were that supply chain problems were easing. What's more, Ford had recently been avoiding such problems better than some of its competitors.
Goldman Sachs analyst Mark Delaney said his firm was "surprised by the 3Q pre-announcement given the progress that Ford had previously made on supply chain bottlenecks."
BofA Securities analyst John Murphy echoed those feelings in a note to investors Tuesday: "Ultimately, this news is somewhat surprising as broader macro news suggest supply chains have gotten incrementally better over the last few months."
Several analysts questioned whether this was a Ford-specific problem, or a red flag for additional problems for the automotive industry.
GM CEO Mary Barra on Tuesday told CNBC that the company's supply chain problems have been easing.
"We are seeing an improved situation," Barra said. "We keep working, solving issues, looking for efficiencies as a normal course, and we're going to continue to do that."
Barra said GM is on track to complete about 95,000 vehicles in its inventory by the end of this year that were manufactured without certain components due to supply chain problems. In July, GM warned investors that supply chain issues would materially affect its second-quarter earnings, while similarly maintaining its guidance for 2022.
Ford said its unfinished vehicles are expected to be completed and sent to dealers in the fourth quarter.
In response to the Tuesday decline, Ford spokesman T.R. Reid said the company continues to deliver on its Ford+ restructuring plan.
"Markets are efficient over time," he said. "We've got a great plan at Ford+ to create value for customers, and investors and other stakeholders over time. It's our obligation to execute against it and create that opportunity."
Ford's stock is down more than 36% year to date but still up about 2% in the last 12 months.
— CNBC's Christopher Hayes and Michael Bloom contributed to this report.
cnbc.com |
| | Ford Motor Company | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Glenn Petersen | 12/2/2022 12:37:25 PM | | | | | | Ford claims No. 2 spot in EVs behind Tesla – but gap remains wide
PUBLISHED FRI, DEC 2 202211:53 AM EST
UPDATED 6 MIN AGO
Michael Wayland @MIKEWAYLAND
CNBC.com
KEY POINTS
-- Ford topped South Korean automaker Hyundai to achieve the goal, but it remains a distant second to industry-leader Tesla.
-- Tesla has dominated U.S. EV sales, but its market share is decreasing as new electric vehicles enter the market.
-- Ford reported its EV sales as part of its November results, which were off 7.8% from a year earlier.
DETROIT – Ford Motor said Friday that it has achieved CEO Jim Farley’s goal of becoming the second best-selling automaker of electric vehicles in the U.S.
The Detroit automaker, citing third-party industry data, topped Hyundai/Kia to hit the goal. Tesla remains the industry leader by a wide margin, but has been losing market share as more EVs enter the market.
Ford said its share of the electric vehicle segment was 7.4% through November, up from 5.7% a year earlier.
The company reported sales of 53,752 all-electric vehicles in the U.S. through November. Tesla, which does not break out domestic results, reported global deliveries of more than 908,000 EVs through the third quarter.
Ford topping Hyundai comes after the South Korean automaker lost incentives that gave buyers of its EVs tax credits of up to $7,500 under the Biden administration’s Inflation Reduction Act, which took effect in August. Vehicles such as Ford’s EVs that are produced in North America still qualify for the credit.
Hyundai did not immediately respond for comment. Hyundai Motor Co. CEO Jaehoon “Jay” Chang, in an exclusive interview with CNBC, described the loss of incentives as concerning and a “very challenging issue.”
Tesla has long-dominated U.S. EV sales. But with more EVs becoming available, S&P Global Mobility reported that its market share of new registered electric vehicles in the U.S. stood at 65% through the third quarter, down from 71% last year and 79% in 2020.
Holding onto the No. 2 spot - a goal Farley previously announced Ford would achieve by 2025 - may prove challenging. General Motors CEO Mary Barra has said the company plans to top Tesla in EV sales by mid-decade, as America’s largest automaker plans to significantly step up EV production in the coming years.
GM does not report monthly sales. Through the third quarter this year, it reported sales of less than 23,000 EVs.
Ford reported its EV sales as part of its November results, which overall were down 7.8% from a year earlier. The company reported U.S. vehicle sales last month of 146,364 units – its second-worst overall total since June. Its EV sales were up from a year ago, when sales volume was very limited.
Ford, citing retail orders, said demand for its vehicles remains strong. It did not give a reason for the November sales declines, but the company and other automakers continue to battle through supply chain problems.
Sales of Ford’s profitable F-Series pickups were only 55,169 in November – off 8.7% from a year earlier. They are now off 12.8% for the year following reported parts problems with the vehicles.
Sales of all Ford’s vehicles, including its luxury Lincoln brand, totaled less than 1.7 million units through November, a 2.7% decrease from a year earlier.
Ford claims No. 2 spot in EVs behind Tesla – but gap remains wide (cnbc.com) |
| | Ford Motor Company | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Glenn Petersen who wrote (177) | 12/27/2022 10:59:03 PM | | From: Iron Mick | | | | I think Ford is positioned to be a big player here long-term. They have the experience, resources, & patience to slowly break into the market.
While Tesla is the first in, their customer service is poor, quality has been hit a few times, and their biggest sell in FSD still is in BETA.
I think if Ford plays their cards right they can take market share in the coming years especially if they the F-150L takes hold. |
| | Ford Motor Company | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Savant | 1/17/2023 10:28:31 AM | | | | | | **Dealers having 'electrical resistance' lol
Cars
Over 40% Of Lincoln Dealers Say No To Ford’s EV Plans
More than a full third of Ford’s Lincoln dealers have opted out of the electric future.
By
Jo Borrás
Published 10 seconds ago
5 Comments
It looks like Ford’s grand plan to electrify its North American franchise dealers by 2030 hit a roadblock, kids — and it’s one that, frankly, Ford should have seen coming. As it turns out, more than 40% of Ford’s Lincoln brand dealers have decided they don’t want to spend nearly a cool million dollars to install EV chargers at their stores.
That million-dollars isn’t a made-up number, either. A number of experts have estimated that about $900,000 will be necessary to install the two Level 3 DC fast chargers and seven Level 2 chargers that Ford is asking for in the brand’s top 130 vehicle markets. Dealers in smaller markets, meanwhile, are still facing down a $500,000 cost to add “just one” DC fast charger and four Level 2s — and the dealers in smaller markets are pushing back at a higher rate than the top 130.
For Ford, it seems like the dream of an all-electric luxury dealer experience to take the fight to a more-affordable Tesla and an ambitious, reborn Cadillac brand might be further off than they thought!
Is Model E Certification a Big Ask?
Lincoln Corsair; courtesy Ford.
It might seem like a big ask for Lincoln dealers — which, despite the brand’s national ad campaigns and high-profile concept cars, don’t actually have any electric vehicles to sell at the moment — to spend hundreds of thousands of dollars to upgrade relatively dealerships that parent company, Ford, already made them spend millions of dollars to upgrade over the course of the last decade. Still, it pays to be prepared.
Chris Poulos, chairman of the Lincoln National Dealer Council, seem to think so, anyway, and says that the timing of Ford’s requirements make sense. “If you start the process too late, and then there’s delays, you’re stuck and in a bad place,” said Poulos, who is also the General Manager of West Point Lincoln in Houston, TX. “I do think there’s some thoughtfulness that’s gone into the timing. It does seem like it’s early, but I also can understand what the pitfalls would be if they (Ford) don’t start early.”
Ford, for its part, is quick to put a positive spin on things. As such, they’ve said that the 59% of Lincoln stores that have enrolled in the program (356 dealerships) represent some 88% of the brand’s US sales volume — which, if I’m reading that correctly, means that 41% of the brand’s stores that said “no” represent just 12% of its sales.
Seems like Ford’s trimming the fat and taking out all the problem dealers in one fell swoop to me. What do you guys think? Scroll on down to the bottom of the page and let us know your take on Ford’s Lincoln requirements, in the comments.
cleantechnica.com |
|
| | Ford Motor Company | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Savant | 1/25/2023 3:38:40 PM | | | | | | Ford Firing Thousands Of Employees (msn.com)
Following the news, Germany's IG Metall union vowed to disrupt Ford operations across the continent if the job cuts go ahead. A spokesperson at the automaker’s Michigan headquarters said discussions with the German works councils were ongoing. He told Reuters the company needs to be more competitive as it transitions to electric vehicles.
He did not elaborate on specific job plans. In a statement via Automotive News Europe, IG Metall said if negotiations between the works council and management in the coming weeks do not ensure the future of workers, they will join the process. "We will not hold back from measures that could seriously impact the company not just in Germany but Europe-wide," the union warned. |
| | Ford Motor Company | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Glenn Petersen | 2/3/2023 9:28:38 AM | | | | | | Ford CEO Jim Farley’s frustration builds as he vows to transform the automaker
PUBLISHED FRI, FEB 3 20236:00 AM EST
UPDATED 3 HOURS AGO
Phil LeBeau @LEBEAUCARNEWS
CNBC.com
KEY POINTS
-- CEO Jim Farley wants Ford to become a far more efficient company, and he needs it to happen quickly.
-- “We have to change our cost profile,” Farley told CNBC. “We know what we have to go after.”
-- The Detroit automaker missed analyst expectations by a wide margin due to another quarter in which costs and supply chain issues hurt the bottom line.
Ford CEO Jim Farley is frustrated.
The company’s fourth-quarter earnings on Thursday missed analyst expectations by a wide margin, as costs and supply chain issues again hurt Ford’s bottom line, Farley knows his company needs to change.
“We have to change our cost profile,” Farley told CNBC after a call with analysts to discuss the quarter’s results. “We know what we have to go after. I’d love to give you all the metrics and all the specific gaps we see. But you know, whether it’s absenteeism, the number of sequencing centers, the number of wiring harnesses we have, we know what it is.”
In short, Farley wants Ford to become a far more efficient company, and he needs it to happen quickly.
The push to transform Ford is taking on greater urgency after the automaker reported 2022 adjusted earnings of $10.4 billion, just three months after the company told analysts it expected to make $11.5 billion to $12.5 billion in that year.
How did Ford fall more than a billion dollars shy of hitting a profit target it gave Wall Street at the end of October?
Blame it on poor execution and higher-than-expected costs. Last quarter, Ford said, overcoming supply chain challenges, including a shortage of semiconductor chips, increased costs by $1 billion more than planned. Ford production was 100,000 vehicles shy of what the automaker expected to build.
Supply chain and cost issues hurt Ford over the last two years. Last September, Ford warned third-quarter costs would be $1 billion greater than expected. For the last two years, high warranty costs — from recalls and troubled launches of new vehicles — were a problem that Farley and his team have been unable to fix.
Farley said Ford’s complexity is part of the problem.
“We have a lot of complexity relative to the customer and also inside our company. And we can cut the customer-facing complexity like we have, but it takes time to work that down to parts on the line, to the manufacturing line,” he said. “It just takes time to work through that and that’s what we’ll do.”
While discussing the fourth-quarter results with Wall Street analysts, Ford’s leadership declined to detail the specific steps it will take to cut costs and make the automaker more efficient and profitable.
Farley said the answer is not simply cutting jobs, which has historically been the way automakers have cut costs. “There are things we could do in the short term, but I don’t want to just make the output the cuts without redesigning the work. This has to be sustainable and that’s how we’re thinking about it nowadays,” he said.
Will this new push to cut costs hurt Ford’s growth in production and sales of electric vehicles? Farley said no.
In fact, he said he believes separating the EV and internal combustion engine vehicle operations into two distinct divisions will actually accelerate efforts to drive greater efficiency. To prove his point, Farley says Ford’s second generation of EVs will be radically simplified, which should eventually lead to fewer problems and higher margins.
“I can’t wait to show you and the whole world this next cycle of products,” he said. “Many of our competitors are just coming out with their first cycle and we can see their batteries are too big. Their distribution costs are too expensive. They’re spending too much money on advertising. You know, we can’t do that. We don’t plan on doing that.”
When Farley became CEO of Ford in October 2020, he vowed to quickly drive the automaker into a new leg of growth led by electric models like the Mustang Mach-E, the E-Transit commercial van and the F-150 Lightning.
And in many ways, he has succeeded. Ford is No. 2 in EV sales in the United States, with just under 8% market share.
While it’s not close to catching up with Tesla, which sells two out of every three EVs in the U.S., Ford’s EV production is increasing rapidly. At the end of last year, Ford was building 12,000 EVs a month. By the end of 2023, Ford expects EV production will reach 50,000 a month.
Still, for all of its accomplishments transitioning to EVs, Ford continues to face issues with internal combustion engine vehicles, which are responsible for almost all of Ford’s profits.
Farley knows investors are watching and waiting for Ford to finally get its act together.
“Be patient. You know, we got the right team. We got the right plan. We’re growing like heck in our pro and EV business,” Farley said when asked what he would say to Ford shareholders. “This key team is going to deliver for you and you are going to get a great return on your investment.”
— CNBC’s Meghan Reeder contributed to this report.
Ford CEO Jim Farley frustrated after bad earnings (cnbc.com) |
| | Ford Motor Company | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| |
