Production is now set to begin at the former Detroit-Hamtramck assembly plant, less than two years after GM announced the massive $2.2 billion investment to fully renovate the facility to build a variety of all-electric trucks and SUVs.DETROIT – President-elect Donald Trump's reelection victory over Vice President Kamala Harris is expected to send the U.S. electric vehicle industry into a period of uncertainty. Republicans, led by the former president, have largely condemned EVs, claiming they are being for ...

Core Viewpoint - Ford's third-quarter 2024 results revealed a significant decline in net income by 25% to $900 million, primarily due to losses in its electric vehicle (EV) business, leading to a downward revision of its full-year EBIT forecast to around $10 billion [1][12]. Financial Performance - Ford's stock has dropped 8.8% following the earnings report and has underperformed with a 17% decline over the past six months compared to its peers and the broader market [2]. - The company anticipates a loss of $5 billion in its EV business for the year, exacerbated by ongoing pricing pressures and increased investments in next-generation EVs [10]. Segment Analysis - The Ford Pro unit has shown strong performance, with revenue and volume growth of 13% and 9% year-over-year, respectively, and EBIT reaching $1.8 billion, up from $1.7 billion [5]. - Subscriptions to Ford Pro software increased by 30%, and mobile repair orders rose by 70%, indicating robust demand [6]. - Ford Pro's EBIT is expected to grow to around $9 billion in 2024, driven by strength in vehicles, software, and services [7]. Challenges - The Model e segment, dedicated to EVs, faced an 11% drop in wholesale volumes and a 33% revenue decline, with a loss before interest and taxes of $1.22 billion [9]. - Warranty costs and quality issues have led to elevated expenses, with significant improvements expected to take up to 18 months [11]. - Higher inflation and increased material prices are anticipated to further pressure margins, leading to a reduction in overall EBIT forecast for 2024 [12][13]. Investment Considerations - Ford's high dividend yield of over 5% is attractive compared to the S&P 500's average yield of 1.24%, with a commitment to distribute 40-50% of free cash flow [8]. - Despite the promising growth in the Ford Pro division, ongoing challenges in the EV sector and warranty costs create a difficult environment for profitability [14][15].

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About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

While disappointing, Ford's third quarter made something else apparent: There's still upside.Ford Motor Company (F -0.68%) just turned in a slightly disappointing third-quarter earnings result, which sent the stock tumbling roughly 10% initially. High costs, supplier issues, rising uncertainty and warranty costs all weighed down on the results.However, with the stock trading at just 11 times price-to-earnings, and offering a robust dividend yield of 5.2%, is there any upside in owning the stock right now?No ...

Ford has invested much capital into its digital and software services, and it's a move that could pay off.The automotive industry is extremely capital intensive, a drawback that has long been discussed by investors and analysts alike. Mainstream automotive businesses -- unlike unique automakers such as Ferrari, which boast luxury-like margins -- are notoriously low margin and competitive. The good news, especially for Ford Motor Company (F -0.68%) investors, is that this low-margin business could be on the ...

One Wall Street analyst sees over 40% upside for Ford stock, but investors should be skeptical.Ford (F -0.68%) updated investors with its third-quarter earnings this week, and the report contained some good news. Bernstein analyst Daniel Roeska thinks there are reasons to see the stock rise to his firm's price target of $15 per share, according to Barron's.That would represent a gain of over 40% from the stock's recent price. But investors shouldn't overlook some of the not-so-good news also present in Ford ...

GLENDALE, CALIFORNIA - AUGUST 21: The Ford logo is displayed at a Ford dealership on August 21, 2024 ... [+] in Glendale, California. Ford announced it is upending its electric vehicle (EV) strategy for North American vehicles to focus on hybrids, affordability, and longer ranges. (Photo by Mario Tama/Getty Images)Getty ImagesFord stock fell by close to 8% on Tuesday, following the company’s Q3 earnings report. Now revenues were better than expected coming in at $43 billion, up 5.5% year-over-year, earnings ...

Key TakeawaysFord will reportedly halt production of its F-150 Lightning electric pickup truck for several weeks starting in mid-November.The automaker's electric vehicle division posted a quarterly loss this month and sales are down year-over-year.Earlier this year, Ford limited production at the facility that makes the F-150 Lightning. Ford (F) is halting production of its all-electric F-150 Lightning pickup truck for at least several weeks as it faces softening demand for its electric vehicles, according ...

Core Insights - Ford is pausing production of its F-150 Lightning electric pickup truck for seven weeks due to ongoing struggles to achieve profitability in its electric vehicle segment [1][3] - The company is implementing cost-cutting measures, including reducing manager bonuses to 65% of last year's levels [2][3] - Ford's electric vehicle division, Model e, reported a loss of $1.2 billion in the third quarter, prompting a revision of the full-year earnings outlook to "about $10 billion" [5] Production and Financial Adjustments - The F-150 Lightning factory in Metro Detroit will idle starting November 15, including planned holiday downtime, and is currently operating on a single shift [3] - Ford's financial performance has been negatively impacted by quality issues and rising costs, including an $800 million warranty charge in Q2 [3][4] - The company has reduced its spending on electric vehicles from 40% to 30% of capital expenditures [4] Strategic Changes - Ford has canceled plans for electric three-row SUVs and delayed the production of its next electric pickup truck as part of its strategic adjustments [5] - The company aims to lower costs, improve quality, and enhance capital efficiency to become a more resilient business [4]