[Perian]

barrons.com
Wards Auto News

Ford Motor is the fifth-largest auto maker in the world based on the number of vehicles it sold last year, but it barely cracks the top 15 in stock market value. The gap says everything about how Ford is viewed today—and the potential opportunity for investors.

Once near the pinnacle of global auto-making in reputation, revenue, and profits, Ford these days is considered by many investors and Wall Street analysts as an also-ran.

Ford is betting heavily on new products to boost 2021 sales: the Bronco, Bronco Sport, Mustang Mach-E and “a not-yet-named vehicle that will fill a whitespace in the market,” the company says.

By this time next year, Ford expects the four new nameplates will outsell its entire previous sedan portfolio that has been decimated by the market swing from cars to utility vehicles and pickup trucks.

Deliveries of the all-electric Mustang Mach-E begin next month, with the First Edition sold out. Starting at $43,895, the Mach-E will reach a whole new set of customers and help usher in the electrification era, the company says.

The redone F-150 also is shipping soon. The fullsize pickup has long been the leader in its segment. Ford says the new F-150’s pre-launch numbers are encouraging: Millions of people tuned in to the reveal and more than half a million visited the launch website in the first week alone.

The Bronco Sport utility vehicle currently is making its way to dealerships. The revived nameplate’s two- and four-door Bronco models – the more serious off-roaders – arrive next summer. Ford boasts of more than 190,000 reservations for the pair.

Ford continues to increase its customization options but says it will simplify the process by relying more on a system centered on dealer-installed options.

Ford says it will offer 149 accessory products for the Bronco Sport’s upcoming launch, and more than 200 when Bronco two- and four-door models make the scene. The automaker says it is preparing to launch dealer-installed options for all of its ’21 models.

“As plant complexity decreases, these options give dealers the opportunity to add accessories to vehicles they order for inventory,” the company says. “Options will appear on the window sticker, and the accessories will be delivered to the dealer for installation on location.”

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[Perian]

“a not-yet-named vehicle that will fill a whitespace in the market,”

I will take a shot at this by saying the proposed Ford Maverick small pickup could fill a huge void in the marketplace. Hyundai is also responding to this void, and GM would be wise to follow.

Ford may also get a huge boost in the coming years with its partnership with Volkswagen.











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[1958carnut]

Ford is betting heavily on new products to boost 2021 sales: the Bronco, Bronco Sport, Mustang Mach-E and “a not-yet-named vehicle that will fill a whitespace in the market,” the company says.

^^^^ That's what I'm thinking. I wouldn't be surprised that this not yet named vehicle to fill a white space is the Maverick seen in so many spy shots. because we've really seen nothing else out and about signifying it is so close to production.

 

[InCogKneeToe]

I still believe that Ford's Stock set up, is what is holding up it's Stock Values. The Ford Family will always have a Controlling Stake in the Company. Even Mr. Buffet cannot swoop in and buy up a Controlling Stake. Heritage has it set up this way, and at the same time, set to be this way until the End of Time.

The Lack Luster Stock price, is not a result of Lack of Guidance, Lack of Future. Ford has a Very Deliberate Path, and is holding to it. This Path, was set in motion, way back during the Mullaly Years at the Helm.

 

[BlackGTP]

I agree that these new products will do well for Ford, but I don't think it will trigger a major change in their stock price. Maybe it'll grow 20% or so, which is definitely a nice return - but this product isn't going to double their market cap. As with GM, too much in the way of bad memories from the past 40 years, their name isn't TESLA, etc..

 

[mbukukanyau]

Should be an interesting two years for Detroit. GM going in all out for electrics, Ford entering new traditional segments, self driving technology...Chrysler getting taken over by the French

 

[sdotjeezy]

Ford is going to be the first of the big 2 to market with an appealing mass market EV. So they at least have that going for them.

 

[mbukukanyau]

I still believe that Ford's Stock set up, is what is holding up it's Stock Values. The Ford Family will always have a Controlling Stake in the Company. Even Mr. Buffet cannot swoop in and buy up a Controlling Stake. Heritage has it set up this way, and at the same time, set to be this way until the End of Time.

The Lack Luster Stock price, is not a result of Lack of Guidance, Lack of Future. Ford has a Very Deliberate Path, and is holding to it. This Path, was set in motion, way back during the Mullaly Years at the Helm.

I think the problem with Detroit stocks in General is their lack of Technology pixie dust.. they are viewed as traditional industrial stocks with little prospect for explosive revenue growth.

The first of them to figure out how to monetize their customers data into platforms useful to others in the consumers markets is going to hit a jackpot.

They do have access to customer information at a level Google can only dream off. How to turn that into a revenue stream is really the problem.

 

[BORG]

Late 2021 should be a good year for Ford, depending on the economy. The first part of the year likely won't be good however because they are transitioning and launching all of these key products, like the F-150 (Raptor is coming later in the year too). Maverick is the "white space" vehicle, the one vehicle they are tight-lipped about even-though we all know what it is now. I have to think Maverick will be something of a breakthrough product, who knows. It looks attractive anyway.

So Bronco, Bronco Sport, Maverick, F-150, Mach E, Transit EV, and then the refreshed Expedition end of the year. Explorer is also due to get Sync 4 for 2022 (end of 2021), although I'm not sure if that involves interior or cosmetic refreshes (presumably a larger screen).

After that, all the new vehicles are EVs (5+) and Trucks (Ranger and Super Duty). Not to mention the new Mustang (2023/4).

Not sure what's happening to EcoSport, a new one is coming Internationally, but not coming to the US...at least right now. Ford may exit that segment in the US and let Bronco Sport and Maverick fill its shoes.

 

[DreadNaughty]

Stock price is already on the rise. I think that will continue.

 

[RamJet502]

From Investors.com a week ago: "Bottom line: Ford stock is not a buy right now for investors focused on top growth stocks with superior fundamentals."

 

[ksr]

Some good things on the horizon for Ford. But it seems that, even worse than with GM, big hopes for the Ford future often fail to materialize.

 

[GMOwner]

Should be an interesting two years for Detroit. GM going in all out for electrics, Ford entering new traditional segments, self driving technology...Chrysler getting taken over by the French

What's so interesting about Chrysler getting "taken over"?

They've been taken over every few years for the last 20 or so years.

What would be interesting is that Chrysler is employee owned, has a new product set, and is ready to take on the world in the auto industry.

But, that's not happening... Instead we think about how the ole Buick Regal/Opel/PSA TourX can become the new Dodge Magnum...ugh...

 

[jpd80]

My understanding was that the IP for those GM legacy platforms were not part of the sale and merely a get through until being replaced by PSA based products.

 

[mbukukanyau]

What's so interesting about Chrysler getting "taken over"?

They've been taken over every few years for the last 20 or so years.

What would be interesting is that Chrysler is employee owned, has a new product set, and is ready to take on the world in the auto industry.

But, that's not happening... Instead we think about how the ole Buick Regal/Opel/PSA TourX can become the new Dodge Magnum...ugh...

See post above, Malibu platform belongs to GM

 

[Ruperts Trooper]

My understanding was that the IP for those GM legacy platforms were not part of the sale and merely a get through until being replaced by PSA based products.

PSA pay licence fees for using GM IP in the Insignia, which why they will move it onto a PSA platform at the earliest opportunity - it would make more sense for the Peugeot 508 to be used as a basis for Dodge.

 

[mbukukanyau]

PSA pay licence fees for using GM IP in the Insignia, which why they will move it onto a PSA platform at the earliest opportunity - it would make more sense for the Peugeot 508 to be used as a basis for Dodge.

That 508 would have to be LWB to work for Dodge. The stubby small European cars would not cut it here. Plus it’s FWD, meaning, it’s dead on arrival..

So it’s Maserati or Alpha for Dodge, but those too are stubby and small.

Most likely, Dodge will just update its existing RWD chassis.

Unless of course they want to bring back the Dart.

 

[BORG]

The two big things going for Ford right now now include a completely revamped portfolio geared toward higher profit volume, and Farley who is quickly taking charge over their biggest expenses caused by warranty and quality. So once they get through the treacherous F-150 launch, their bottom-line should improve significantly. But it always bares repeating that F-150 is their lifeblood so all hinges on getting that product up and running. I don't anticipate this generation of F-150 being much of a headache however, 2015 was a far more ambitious launch.

 

[mbukukanyau]

The two big things going for Ford right now now include a completely revamped portfolio geared toward higher profit volume, and Farley who is quickly taking charge over their biggest expenses caused by warranty and quality. So once they get through the treacherous F-150 launch, their bottom-line should improve significantly. But it always bares repeating that F-150 is their lifeblood so all hinges on getting that product up and running. I don't anticipate this generation of F-150 being much of a headache however, 2015 was a far more ambitious launch.

There could be complications from their Volkswagen entanglements and Rivian entanglement.

The other weakness is lack of any significant strength outside North America.


Lastly, it’s their leadership structure, the real ship captain is Bill Ford, and he has gone through a lot of CEO’s without showing real results

 

[BlackGTP]

Ford needs to prove a few things with their product launches too - they've struggled in getting things right upfront. And before someone goes and pulls an example of GM having issues, we are talking about Ford, not GM. All automakers can have issues with launch, but seems like Ford struggles a lot more than any other make with launches. If they can't get their new product off the ground without big troubles then the new product wont help their stock price. Once they solve the problems then I'm sure the product will sell well, but I think Wall Street will be left with lingering doubts about what is going on behind the scenes to cause these constant product launch issues, meaning "I'd rather invest my money at this other car company that also has exciting product and CAN launch it without big problems".