Ford

  • An update by Ford Motor Company reflected a   decline in sales for the current quarter against a backdrop of supply chain   issues, with the semiconductor chip market remaining tight.

  • A volatile and uncertain macroeconomic environment, due to a spike in inflation   and rising interest rates, were other factors impacting consumer spend.

  • However,   an uptick in demand in June, resulted in Ford’s market share in the US   increasing to 12.9%, outperforming other automotive players in the industry.

  • This   was driven by strong demand for electric vehicles, such as the F150 Lightning   pick-up truck, which made its debut in May 2022, with an order book   stretching into 2023.

  • This   new model electric truck was the best-selling pick-up in June, with SUV   automobiles accounting for the majority of US sales.

  • New   model innovation, such as the Bronco Sports brand and the Mustang E vehicles   have also resulted in stronger brand recognition, particularly in the US   market which is the largest and most profitable for the group.

  • Ford’s   strategy to grow its Battery Electric market share, which is highly profitable   relative to the sale of combustion vehicle engines, will take time to achieve   with the company undergoing a major transformation.

  • Fitch,   the credit ratings agency, recently upgraded Ford to a positive outlook, with   its signally sufficient cash reserves enabling the company to invest in the   electric vehicle industry.

  • Ford will present its results later this month (27th July) and   appears to be in a turnaround mode. At a current price of $11.65 per share,   this represents a fair value. Investors should wait for the results before   making any investment decisions.

Ford