Ford (F) delivers first China-produced Mustang Mach-E

Ford F delivered its first China-made Ford Mustang Mach-E to China on December 26, 2021.

The Mach-E model for China has its own localized production unlike those for the North American and European markets which are produced in Mexico. The Chinese production line was launched at Changan, Ford’s manufacturing plant in Chongqing, on October 18, 2021.

Ford has brought product differentiation to China where its new electric cars are sold directly to customers rather than through traditional dealers. There are currently 25 stores covered by this direct-to-customer store network located in major Chinese metropolitan markets, with Ford planning to increase the number.

Direct-to-customer stores, instead of being stand-alone sites, are located in high-traffic malls that offer other global brands side-by-side. This is a model specific to China where customers, especially the younger generation, prefer direct access to vehicles after having previously researched them on their own.

Notably, Ford sold over 3,000 Mach-E vehicles in the United States in November and unlocked more battery capacity for longer range and improved fast charging speed.

Ford said now is the time to focus on the first three models, namely the Mach-E, Ford F-150 Lightning and Ford E-Transit, instead of adding more, which will result in a higher production rate of Mach-E in the short term. The company aims to produce more than 200,000 vehicles per year in North America and Europe by 2023.

Ford shares have climbed 134% in the past year compared to the industry’s 24% rise. The company’s estimated profit growth rate for the current year is set at 359%.

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Ford, in its third quarter earnings call, raised its EBIT guidance for 2021. The company now expects current-year EBIT to be between $ 10.5 billion and $ 11.5 billion, higher than the previous year. previous estimate of $ 9-10 billion. Ford’s forecast for the adjusted FCF for the full year remains unchanged between $ 4 billion and $ 5 billion. Management predicts that commodity costs will increase by $ 3 billion to $ 3.5 billion in the current year, and an additional $ 1.5 billion in 2022.

The company also plans to spend $ 40 billion to $ 45 billion in strategic capital spending between 2020 and 2025, including half of the more than $ 30 billion it plans to spend exclusively in BEVs.

Rank of Zacks and choice of keys

Currently, Ford wears a Zacks Rank # 3 (Hold).

Higher ranked peers in the same space include Good year GT, posting a rank 1 of Zacks (strong buy), and Fox Factory Holdings FOXF and Dorman products DORM, each wearing a Zacks Rank # 2 (Buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Goodyear has an expected profit growth rate of 197% for the current year. Zacks’ consensus estimate for earnings for the current year has been revised upwards to 77% over the past 60 days.

Goodyear has beaten Zacks’ consensus estimate for earnings over the past four quarters. The company has achieved a surprise profit over the past four quarters of around 228.5% on average. Its shares have also gained around 95.5% year-on-year.

Fox Factory has an expected earnings growth rate of 48.2% for the current year. Zacks’ consensus estimate for the current year has been revised about 2% up in the past 60 days.

Fox Factory has beaten Zacks’ consensus estimate for earnings over the past four quarters. The company delivered a surprise profit in the last four quarters of around 16% on average. Its shares are up about 38.3% year on year.

Dorman has an expected profit growth rate of 36% for the current year. Zacks’ consensus estimate for the current year has been revised 2% up in the past 60 days.

Dorman has beaten Zacks’ consensus estimate for earnings over the past four quarters. The company has achieved a surprise profit over the past four quarters of around 10.41% on average. Its shares also rebounded about 12.6% year on year.

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