Updated Aug 13 at 11:13am ET.
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Ford is planning to expand the Mustang lineup with a four-door model, a first for the brand. This is a move to take one of its most recognizable names and make it practical for a wider group of buyers who need more space than a traditional two-door sports car provides.
Using a famous brand to launch new types of vehicles is a strategy Ford used successfully with the electric Mustang Mach-E. If this new version sells well, it allows Ford to earn more from the Mustang name without the massive cost of building an entirely new brand from scratch.
Source: WSJ
Ford is shifting its manufacturing strategy for the Lincoln luxury brand by phasing out imports from China. By 2030, the company intends to build these vehicles in the U.S. instead. This move helps the company avoid potential trade risks and tariffs, which are taxes on imported goods that can make vehicles more expensive for buyers.
While the shift is years away, it shows Ford is leaning into its domestic factories to support its luxury lineup. Producing cars closer to where they are sold can also simplify the supply chain, though it often comes with higher labor costs compared to manufacturing overseas.
Wholesale prices, which measure what businesses pay for goods and services before they reach consumers, did not rise in July. This is a helpful sign for a carmaker like Ford that spends billions on raw materials and parts. When these costs stop climbing, it becomes easier for the company to protect its profit margins.
Lower inflation also makes it more likely that borrowing costs will eventually fall. Since most people and businesses finance their vehicle purchases, lower interest rates generally make it more affordable for customers to buy a new truck or van.
Source: Market Watch
Ford announced that its upcoming electric midsize pickup truck will be named Fathom and carry a starting price of about $28,000. The vehicle is the first to use the company's new universal electric vehicle platform, which is a shared set of parts and engineering designed to make manufacturing cheaper.
This is a major step in Ford's plan to stop losing money on electric cars. By pricing a truck under $30,000, Ford is trying to reach the mass market and defend against low-cost electric vehicles coming from China. If Ford can build this truck profitably, it would prove they can compete on price without relying entirely on their expensive gas-powered trucks for profit.
Source: CNBC
Mortgage rates edged up to 6.69 percent this week. While this specifically affects home buying, it is a sign that borrowing costs remain high across the economy, which can make it more expensive for consumers to take out the loans they need to buy new cars and trucks.
Analysts issued a flurry of upgrades and positive ratings in late July. Most analysts are split, with 18 of 47 rating the stock a buy, and the average target of $16 suggests an 18% upside from today's price.
Ford has a habit of clearing the bars set for it, beating profit expectations in seven of the last eight quarters. This suggests management is conservative with its forecasts and executes well.
| Expectation | |
|---|---|
| EPS | $0.41 |
| Revenue | $48.42B |
