The value of Ford stock dipped during the February 7th, 2022 – February 11th, 2022 timeframe. Shares closed the week at $17.55, which represents a two percent percent drop, or $0.41 per share drop in value, compared to the prior week’s closing value of $17.96.
By comparison, shares of Ford’s cross-town rival – General Motors Company – dipped in value by $2.46 per share, or just under five percent, during the same timeframe.
There were two product reveals during the week and one production-related announcement made during the same timeframe. As part of the lead up to the 2022 Chicago Auto Show, The Blue Oval revealed a new Ford GT heritage model and the 2022 Ford Bronco Everglades. Both models will go on sale later this year and will be limited production variants. Additionally, the automaker announced that the 2022 Ford E-Transit has started shipping out to U.S. dealers.
Ford CEO Jim Farley has been steadfastly outlining The Blue Oval’s future since assuming the role in October 2020. The company’s key goals and organizational changes include:
- An expansion and spinoff for Ford’s leading commercial vehicle business with a suite of software services that drive loyalty and recurring revenue streams.
- Offering compelling, uniquely Ford, fully electric vehicles at scale around the world, including the Ford Transit, Ford F-Series, Ford Mustang, SUVs, and Lincoln models.
- An alliance with German automaker Volkswagen.
- Adding more affordable vehicles to Ford’s global lineup, including in North America.
- Increasing the amount of money spent on EV development, to $30 billion through 2025.
- Having Ford Europe transition to zero-emissions vehicles by 2027 and switch completely over to full EVs by 2030.
- The launch of Ford Ion Park, a facility designed to facilitate R&D initiatives on battery production.
- An investment in Solid Power, a producer of solid-state batteries.
- BlueOvalSK, a joint venture between Ford and SK Innovation, Ford’s preferred supplier of EV batteries, which will bolster Ford’s EV manufacturing ambitions, specifically at two upcoming facilities expected to come online in 2025.
- Transforming Lincoln into a fully electrified luxury division by 2030.
- A partnership with Google that will transform the company’s manufacturing operations and see future Ford Motor Company vehicles sport Android-powered infotainment systems.
- Continued investments into EV startup Rivian.
- A shift to a build to order paradigm for retail customers.
- Buyout programs for employees involved in legacy ICE powertrain and platform development.
- Realigning markets according to what’s outlined in the Ford+ plan, which seeks cost reductions in underperforming regions such as South America and India.
- Supporting green initiatives with a comprehensive sustainable financing framework.
- Producing 600,000 EVs per year by 2024, a projected target that includes doubling Ford F-150 Lightning production to 150K units by mid-2023.
- Working with semiconductor manufacturer GlobalFoundries to secure additional microchips for its vehicles.
- Securing batteries from multiple companies wherever possible.
- Developing Ford Pro as a one-stop shop for commercial fleet management as it relates to fully electric work vehicles.
- Further strengthening its digital and connected services by entering into collaborations with companies like Stripe and ADT for payment systems and vehicle security, respectively.
Ford’s fourth quarter 2021 U.S. sales decreased six percent to 508,451 units. Sales decreased at both Ford and Lincoln during that timeframe. For December 2021, U.S. sales dropped by 17 percent to 173,740 units. Ford China sales increased 11.9 percent in Q4 2021 and were up 3.7 percent to 624,000 units for the calendar year.
Ford Stock Value Macro Factors – Products
Ford stock values surged considerably higher last May after Ford officially revealed the 2022 Ford F-150 Lightning, the first all-electric F-Series pickup. Share values experienced further gains after that announcement too, and the debut of the 2022 Ford Maverick pickup undoubtedly delighted investors as well, which contributed to a solid growth period for Ford stock that that dipped before reaching twenty-year highs towards the tail end of 2021. The Maverick is currently in the middle of its initial rollout and sales have steadily increased each month it has been on the market. The Lightning launches in spring 2022. The compact pickup was named the 2022 North American Truck of the Year in January. The Blue Oval stopped taking orders for the pickup in January in order to focus on building customer orders.
The Bronco family is also steadily rolling out to dealers and both vehicles remain hot items. Ford sold over 100,000 units of the 2021 Ford Bronco Sport last year and just under 40,000 units of the 2021 Ford Bronco during the same timeframe. The Ford Bronco was named the 2022 North American SUV of the Year in January. For 2022, the Bronco lineup will add the Bronco Raptor and Bronco Everglades variants to its lineup.
Ford is also currently working on ramping up production of the Ford Mustang Mach-E – a four-door, crossover-like hatch inspired by the legendary Mustang pony car. More than anything else, the Mustang Mach-E demonstrates that Ford isn’t afraid to redefine legendary nameplates, and recreate them in new body styles and as new vehicle types.
Production of the Mach-E kicked off in late October 2020, and the model has since found a following within its home market, although sales are held back due to production constraints. Ford delivered its first three examples in December 2020 and 6,614 units in Q1 2021. Since then, the electric crossover has made steady inroads into the Scandinavian EV market, and recently became Norway’s best-selling vehicle in May and July . Automotive outlets and industry experts praised the EV for its good looks, engaging driving dynamics, upscale interior, and clever engineering. Additionally, preliminary reports suggest that the vehicle is already eating into Tesla’s market share, which would be a significant achievement, especially when considering the relatively short amount of time the Mach-E has been on the market. In June, the Mustang Mach-E outsold its gasoline-powered counterpart for the first time. The Mustang Mach-E notched another victory for itself in early July, when Car And Driver named the crossover its 2021 EV of the Year. It also is the most considered compact SUV in the 2021 J.D. Power APEAL study and is currently being considered for police duty in the U.S. and the U.K. The Chinese rollout officially began in late October 2021, when the first domestically produced Mach-E rolled off the assembly line. Ford plans to deliver 50,000 examples to customers by 2022 while the buyers who already received their vehicles are highly satisfied with their purchases.
The 2021 Ford Mustang Mach-E represents one part of a four-pronged blade Ford hopes will increase its North American market share this year and beyond, as the company has essentially fully transitioned away from sedans and passenger vehicles towards utility vehicles, trucks, and electrified models. That said, all of the aforementioned models have a significant amount of potential to resonate with car shoppers, and their reception will almost certainly impact the value of Ford stock in the coming months, provided the company can build a steady supply of them.
Ford Stock Macro Factors – Events
The Blue Oval has been disproportionately impacted by the ongoing chip shortage, which is expected to continue through at least the first half of 2022, if not longer. Ford CEO Jim Farley believes the shortage will persist through 2023.
Outside of North America, Ford faces substantial challenges. India and South America continue to take a heavy toll on the company’s financial well-being. Ford Credit is currently winding down operations in both regions, and the automaker has been forced to spend a considerable amount of cash in South America as it begins to shutter several of its assembly plants in Brazil. Ford officially announced its intention to shutter two assembly plants in India in September 2021 after noting that it had lost $2 billion in the country over the past 10 years. Additionally, the pandemic is still impacting Ford share value, and the situation with Ukraine undoubtedly put a damper on trading during the week.
Ford Stock Value Micro Factors
There have been several high-profile personnel changes at Ford recently. The company has added Steven Crowley and Jon Huntsman, two former political operatives, to its executive roster, and both individuals will be instrumental in tweaking the company’s relationship with the federal government going forward. There has been one major departure from the automaker as well, with Ken Washington recently announcing his intention to work for online retailer Amazon. However, Ford recently poached an Amazon executive away from the company, in an interesting turn of events. Another recent personnel involved the hiring of Doug Power, who has been named vice president of corporate development, a newly created position. In January 2022, The Blue Oval recruited Martin Sander to join Ford Europe as head of its passenger vehicle division, which represented another minor coup of sorts, as he came from Audi. Alan Clarke, a prominent Tesla engineer, joined Ford in January 2021.
Stock Performance Year-To-Date
Ford share values have substantially fluctuated since the first day of trading in January 2022, dropping 19 percent, or $4.22 per share, as of this writing. The one-two punch of the pandemic and the microchip shortage has impacted the automaker’s bottom line, which has in turn rattled Wall Street.