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Is Ford a Millionaire Maker Stock?
FFord Motor(F) The Motley Fool·2025-01-09 09:40

Group 1: Company Overview - Ford Motor Company is a major player in the automotive industry with a market capitalization of approximately 40billion[2]−Thecompanysoldover2millionvehiclesin2024,withasignificantfocusontrucksandSUVs,whichaccountforaround5640 billion [2] - The company sold over 2 million vehicles in 2024, with a significant focus on trucks and SUVs, which account for around 56% and 42% of sales, respectively [2] - Electric vehicle (EV) sales increased by 38% year over year in 2024, while combustion engine sales saw minimal growth of just 0.2% [3] Group 2: Financial Performance - Ford's business is segmented into three divisions: Ford Blue (combustion engines), Ford Model E (electric vehicles), and Ford Pro (business sales) [5] - For the first nine months of 2024, Ford Blue and Ford Pro generated EBIT of approximately 3.7 billion and 7.4billion,respectively,whileFordModelEreportedanegativeEBITofaround7.4 billion, respectively, while Ford Model E reported a negative EBIT of around 3.7 billion [6] Group 3: Transition Challenges - Ford is navigating a challenging transition from combustion engines to electric vehicles, balancing old and new technologies [7] - The company faces significant competition in the EV market from established players like Tesla and other automakers [8] - The cyclical nature of the consumer discretionary sector adds complexity, as vehicle sales typically decline during economic downturns [9][10]