A while back, we found out that legacy automaker Ford (F) was working to grow beyond its legacy, and in the process, produce exciting new vehicles that caught the public’s attention. And Ford is sticking with that, doubling down on the idea of “no boring cars.” Shareholders approved of this notion, and sent shares up fractionally in Thursday afternoon’s trading.
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While at the Detroit Auto Show, noted a report from Ford Authority, Ford—who already brought new vehicles to the event—also brought a bit of a rile-em-up speech at the show, declaring: “Rule no. 1 at Ford: no boring products.” This is likely interesting to anyone who remembers when job no. 1 at Ford was “quality.” But the idea of not being boring can work with quality, as further remarks revealed.
Ford’s vice president of advanced product development, Jim Baumbick, followed up by noting that Ford was not “…trying to make toasters on wheels.” Ford is staying out of the “commodity”market and instead working to make cars that drive “emotion.” In fact, Ford has already shut down the Edge, and reports suggest the Escape—a competitor with General Motors’ (GM) Chevrolet Equinox—may be next.
Seats Are More Than a Place to Sit
In a bid to push “passion” projects at Ford, Ford Authority also brought out a surprise look at a new patent at Ford, focused on seats. While some might think that seats are just for sitting, Ford’s new “passion” outlook does not share that appraisal.
The new patent suggests that, in the future, seats could take the place of running boards and even offer storage options. The new seats could contain slide-out drawers, or even slide-out steps, to allow drivers access to new seat functions that were previously unavailable. Some other potential uses include “inflatable blankets,” which would be like an airbag, but one that comes up from the floor. Regardless, Ford is clearly trying to make the most of its available space and embrace its new “passion” philosophy.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, seven Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 4.99% loss in its share price over the past year, the average F price target of $10.31 per share implies 3.2% upside potential.
