Top-line revenue for Q2 was $45 billion, outpacing an expected $40.17 billion and improving 12% from the $37.91 billion reported a year earlier. Adjusted earnings per share amounted to $0.72, beating the Wall Street consensus estimate of $0.54 per share. Adjusted EBIT amounted to $3.8 billion.

In terms of its full-year guidance, Ford expects its Ford Blue unit as well as its Ford Ford Pro unit to attain an EBIT of $8 billion a piece. The company’s electric vehicle (EV) unit is expected to continue struggling,however, with its Model E unit expected to incur a full-year loss of $4.5 billion.

Still, Ford CEO Jim Farley expects the company to achieve its EV goals despite this hiccup, explaining, “The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford. EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”

The company expects to reach a 600,000-unit EV production run rate in 2024, en route to achieving its manufacturing goal of 2 million EV units per year.

The post Ford Beats Q2 Profit Estimates Amid EV Unit Slump appeared first on theprimarymarket.com.

After cutting the Mach-E price by 8%, Farley expressed an unwillingness to carry out a price-cutting strategy in the same way that company founder Henry Ford did with the Model T starting in 1913.

“You do not want to commoditize the product,” Farley told the Wall Street Journal, adding that he believed the founder’s strategy to be harmful. The resale value for people who bought at higher prices is awful. They never forget. There’s a limit to how far we’ll go.”

In addition to the company’s recent price cut, Farley also spoke of new developments regarding the manufacturing of Ford vehicles. While the likes of General Motors have committed to phasing out features such as Apple CarPlay, Ford has no intention of doing so, with Farley explaining that the company has no choice in the matter due to 70% of its customers in the U.S. being Apple device users.

The post Ford CEO Expresses Concern Over EV Price Cuts appeared first on theprimarymarket.com.

The automaker’s increase in sales is largely attributed to a combination of rising demand and the easing of supply chain restrictions. Ford’s rising sales follow the global trend of rising U.S. sales as shipments to dealers across the industry continue to improve. The exception was Toyota Motor Corp, which reported that it is continuing to experience parts shortages.

Ford reported total first-quarter sales of 475,906 vehicles; up from its sales of 432,132 vehicles during the same period a year earlier.

Automakers across the board faced multiple supply chain disruptions during the height of the pandemic, leading to lower supply levels and multiple delivery setbacks. Such disruptions dwindled over the past year, enabling the likes of Ford to boost their deliveries.

The post Ford’s Quarterly U.S. Sales Surge By Over 10% appeared first on theprimarymarket.com.

According to documents released by National Highway Traffic Safety Administration (NHTSA), the brake issue is related to the rupture-prone front brake hoses that can cause fluid leaking. The models that are most affected by the problem are Ford Fusion and Lincoln MKZ from 2013 and 2018.

“The driver may experience an increase in pedal travel together with a reduction in the rate of deceleration, increasing the risk of a crash,” NHTSA states.

Also, around 220,000 F-150 pickups were recalled due to faulty windshield wiper arms that have been susceptible to breaking.

Ford announced that it would notify the customers that are affected by the recall via letter. The car owners are instructed to contact their local dealership, where they will get a replacement part installed free of charge.

After the news came out, Ford’s shares dropped from $11.72 per share on Friday morning to close at $11.30 per share by the end of the day. The company’s stock lost more than 30 percent of its value in the past year.

The post Ford Stock Dips After 1.5 Million Vehicles Are Recalled Due to Brake and Wiper Issues appeared first on theprimarymarket.com.

Hummel based his evaluation on the bleak outlook for the car sector in 2023. According to the analyst, demand destruction is “inevitable,” and the carmakers will soon face bloated inventory and an inability to meet the sales quotas. 

“We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel explained in a note sent out to clients.

Adjusting Ford’s previous rating of Neutral to Sell, Hummel set a price target of $10 per share, which represents 23% less than his previous estimate. Ford’s stock is sitting at $11.33 on Tuesday, being down close to 50% year to date.

GM stock also had its Neutral rating changed to Sell but received less favorable treatment. Hummel had a $38 per share price target on General Motor shares compared to the current price of $32.01. GM stock is 47.7% down year-to-date.

The post Ford and GM Stocks Dip After UBS Downgrade appeared first on theprimarymarket.com.

Top-line revenue for Q2 was $45 billion, outpacing an expected $40.17 billion and improving 12% from the $37.91 billion reported a year earlier. Adjusted earnings per share amounted to $0.72, beating the Wall Street consensus estimate of $0.54 per share. Adjusted EBIT amounted to $3.8 billion.

In terms of its full-year guidance, Ford expects its Ford Blue unit as well as its Ford Ford Pro unit to attain an EBIT of $8 billion a piece. The company’s electric vehicle (EV) unit is expected to continue struggling,however, with its Model E unit expected to incur a full-year loss of $4.5 billion.

Still, Ford CEO Jim Farley expects the company to achieve its EV goals despite this hiccup, explaining, “The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford. EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”

The company expects to reach a 600,000-unit EV production run rate in 2024, en route to achieving its manufacturing goal of 2 million EV units per year.

The post Ford Beats Q2 Profit Estimates Amid EV Unit Slump appeared first on theprimarymarket.com.

After cutting the Mach-E price by 8%, Farley expressed an unwillingness to carry out a price-cutting strategy in the same way that company founder Henry Ford did with the Model T starting in 1913.

“You do not want to commoditize the product,” Farley told the Wall Street Journal, adding that he believed the founder’s strategy to be harmful. The resale value for people who bought at higher prices is awful. They never forget. There’s a limit to how far we’ll go.”

In addition to the company’s recent price cut, Farley also spoke of new developments regarding the manufacturing of Ford vehicles. While the likes of General Motors have committed to phasing out features such as Apple CarPlay, Ford has no intention of doing so, with Farley explaining that the company has no choice in the matter due to 70% of its customers in the U.S. being Apple device users.

The post Ford CEO Expresses Concern Over EV Price Cuts appeared first on theprimarymarket.com.

The automaker’s increase in sales is largely attributed to a combination of rising demand and the easing of supply chain restrictions. Ford’s rising sales follow the global trend of rising U.S. sales as shipments to dealers across the industry continue to improve. The exception was Toyota Motor Corp, which reported that it is continuing to experience parts shortages.

Ford reported total first-quarter sales of 475,906 vehicles; up from its sales of 432,132 vehicles during the same period a year earlier.

Automakers across the board faced multiple supply chain disruptions during the height of the pandemic, leading to lower supply levels and multiple delivery setbacks. Such disruptions dwindled over the past year, enabling the likes of Ford to boost their deliveries.

The post Ford’s Quarterly U.S. Sales Surge By Over 10% appeared first on theprimarymarket.com.

According to documents released by National Highway Traffic Safety Administration (NHTSA), the brake issue is related to the rupture-prone front brake hoses that can cause fluid leaking. The models that are most affected by the problem are Ford Fusion and Lincoln MKZ from 2013 and 2018.

“The driver may experience an increase in pedal travel together with a reduction in the rate of deceleration, increasing the risk of a crash,” NHTSA states.

Also, around 220,000 F-150 pickups were recalled due to faulty windshield wiper arms that have been susceptible to breaking.

Ford announced that it would notify the customers that are affected by the recall via letter. The car owners are instructed to contact their local dealership, where they will get a replacement part installed free of charge.

After the news came out, Ford’s shares dropped from $11.72 per share on Friday morning to close at $11.30 per share by the end of the day. The company’s stock lost more than 30 percent of its value in the past year.

The post Ford Stock Dips After 1.5 Million Vehicles Are Recalled Due to Brake and Wiper Issues appeared first on theprimarymarket.com.

Hummel based his evaluation on the bleak outlook for the car sector in 2023. According to the analyst, demand destruction is “inevitable,” and the carmakers will soon face bloated inventory and an inability to meet the sales quotas. 

“We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel explained in a note sent out to clients.

Adjusting Ford’s previous rating of Neutral to Sell, Hummel set a price target of $10 per share, which represents 23% less than his previous estimate. Ford’s stock is sitting at $11.33 on Tuesday, being down close to 50% year to date.

GM stock also had its Neutral rating changed to Sell but received less favorable treatment. Hummel had a $38 per share price target on General Motor shares compared to the current price of $32.01. GM stock is 47.7% down year-to-date.

The post Ford and GM Stocks Dip After UBS Downgrade appeared first on theprimarymarket.com.