Legacy automaker Ford Motor Co. (F) is clearly laying the groundwork for its near-term future, and production has recently begun at a new electric vehicle (EV) motor plant. Drive units are rolling off the line at the Halewood plant in Liverpool, United Kingdom.
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While Ford has been planning to cut jobs in the U.K., and also petitioning its government for new electric vehicle subsidies, it is proceeding as though that demand will be there. Ford put plenty of money into the operation—less than 10% of that came from the Automotive Transformation Fund in the U.K. and it is on track to eventually produce 420,000 electric drive units a year.
One model line that will be supported by this effort is the Ford Puma Gen-E, which recently rolled out in Europe and so far has caught quite a bit of attention. The E-Transit Custom and the E-Tourneo Custom are also set to pick up drive units from this operation. In fact, around 70% of all electric vehicles Ford sells in Europe, will see its drive come from the Halewood plant.
Poaching Jeeps
Meanwhile, Ford is taking aim at one of its biggest competitors: Jeep, a Stellantis (STLA) brand. Ford has been putting plenty of discounts behind its Explorer lineup, and individual dealerships are also cutting prices, taking $2,000 off the price specifically for current Jeep owners.
The Explorer is a Ford mainstay, and has been for years, but there are signs that sales are starting to slide. This is not surprising as several competitors have emerged in this space, like the Chevy (GM) Equinox. However, there are some signs that not every dealer will be offering the new deal.
Is Ford Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on four Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 3.61% rally in its share price over the past year, the average F price target of $11.04 per share implies 5.44% upside potential.
