In what may be one of the most incongruous battle plans seen in quite some time, Ford (NYSE:F) is planning for growth. It’s planning for growth even as large chunks of its workforce walk the picket lines, and it’s actively firing other portions according to the new production schedules. This odd bit of cognitive dissonance is leaving investors nervous, and Ford shares are down nearly 2% in Wednesday afternoon’s trading.
More specifically, Ford announced changes to Ford+, its organizational growth plan. It’s geared toward giving the company something of a unified vision for growth in all Ford product lines, whether standard gas vehicles, outright electric vehicles, or hybrid versions of the two. The project focuses on building better customer relationships, improving overall financial performance, and building up investment in both “iconic vehicles” and the latest in cutting-edge hardware, as well as software to support it.
In aid of such lofty goals, Ford has also shaken up its upper management operations. Now, Kumar Galhotra—former head of Ford Blue—is now the chief operating officer. Andrew Frick is taking over for Galhotra at Ford Blue, which focused on gas and hybrid vehicles. Since Frick was previously sales and distribution manager for Ford Blue, he should readily slot into the chief slot therein. Reports from Ford note that the moves should “…drive clarity and simplicity across Ford, so we can significantly ramp up our capabilities….” That’s certainly what Ford could use right now, except that Ford’s manufacturing capabilities have been hampered to the point of near-uselessness.
Is Ford a Buy, Sell, or Hold Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on F stock based on six Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Ford price target of $15.14 per share implies 27.82% upside potential.
