Ford Announces $19.5 Billion Restructuring Plan, Shifts Focus to Hybrid Vehicles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Restructuring Plan: Ford announced a $19.5 billion restructuring due to declining EV market demand, with most charges expected in Q4 and $5.5 billion through 2027, impacting net results but not adjusted EBIT.
- Strategic Shift: The company is pivoting towards hybrids and high-margin opportunities, aiming for 50% of global volume to be hybrids and EVs by 2030, a significant increase from 17% in 2025, to enhance profitability.
- Battery Factory Repurposing: Ford plans to repurpose its Kentucky battery factory for data center and energy infrastructure batteries, investing approximately $2 billion over the next two years to capture demand in the battery energy storage systems market.
- Market Adaptability: This strategic adjustment demonstrates Ford's responsiveness to market changes, aiming for long-term profitability by adapting to current conditions, showcasing the company's ability to pivot in challenging times.
F
$13.31+Infinity%1D
Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 12.46 USD with a low forecast of 10.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 13.360
Low
10.00
Averages
12.46
High
15.00
Current: 13.360
Low
10.00
Averages
12.46
High
15.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
