FORD Is Going Down The Hill

Ford badly needs the Ford F-150 pickup truck; the all-new Ford Bronco SUV; and the promising, pure-electric Ford Mustang Mach-E to be completely successful to avoid a sudden death within the next 5 years.

The only promising thing about Ford at the moment is the upcoming all-electric Mach-E, which to me is already a disaster in the making. Ford dealerships have been prompted to order Mustang Mach-E FCTP (Ford Courtesy Transportation Program) units with a delivery date planned for the final month of the year.

Think of The Mustang Mach-E FCTP as a demo version of the final product. This demo version is just for buyers to use as a test drive… Ford hopes this will help increase the pre-order. A Big Mess!.

Ford CFO Tim Stone warned investors in April that the company expected to lose more than $5 billion, on an adjusted pretax basis, during the second quarter as the pandemic shuttered factories and severely hampered auto sales, more than doubling the first-quarter’s $2 billion financial loss.

“We believe the company’s cash is sufficient to take us through the end of the year, even with no additional vehicle wholesales or financing actions,” said Chief Financial Officer Tim Stone. Ford expects an adjusted pretax profit of between $500 million and $1.5 billion in the third quarter as long as economic conditions remain favorable without production disruptions, Stone said.

BorgWarner building customized Integrated Drive Module for Ford Mustang Mach-E

Ford Mustang Mach-E driving module is not being built by Ford but outsourced to BorgWarner (American worldwide automotive industry components and parts supplier, primarily known for its powertrain products, including manual and automatic transmissions).

This is already a huge RED FLAG, as Ford is not designing the drive module themselves.

BorgWarner is building an Integrated Drive Module (IDM) for Ford’s new all-electric Mustang Mach-E SUV. The iDM comes complete with a BorgWarner thermal-management system and gearbox integrated with a motor and power electronics from other suppliers and showcases the company’s system integration expertise.

The iDM is being supplied to power the Mustang Mach-E’s rear-wheel-drive and all-wheel-drive configurations. On the all-wheel-drive GT version, BorgWarner is supplying the secondary drive unit to power the front wheels as well. The start of production is slated to begin this year.

Ford Autopilot

In 2019 Ford Motor Co.’s said it’s 2021 Mustang Mach-E will feature a new, hands-free driver-assist system that will compete with Cadillac’s Super Cruise and Tesla’s Autopilot.

We still don’t know much about the program until now. Tesla on the other hand is planning to turn on THE FLEET any moment from now, to enable all Tesla cars to become a Fully Autonomous Self-driving Robotaxis.

The only thing we know about Ford’s bet on Self-driving vehicles, until now, is Ford’s $1 billion investing in Argo Ai.

According to Ford, Investment in Argo AI strengthens Ford’s leadership in bringing self-driving vehicles to market in the near term and creates technology that could be licensed to others in the future.

Conclusion:

I would love to see Ford electric vehicle initiatives succeed, but so far nothing seems to be working fine with the project.

Ford Suspends All European Production Until May 4

Ford Motor said due to the Covid-19 pandemic the temporary suspension of vehicle and engine production at most of its European manufacturing sites will continue at least until May 4.

  • Temporary suspension continues to apply to most vehicle and engine production at Ford’s European manufacturing sites
  • Follows initial announcement on March 17 that the production suspension would last a number of weeks depending on pandemic situation, national restrictions, supplier constraints and the ability of our dealer network to operate
  • Ford and its employees continue numerous actions across Europe supporting national initiatives and community-focused activities to help reduce spread of COVID19

The announcement follows prior confirmation that production would be temporarily suspended from March 19 for a number of weeks at Ford’s main continental European manufacturing sites (Saarlouis and Cologne, Germany; Valencia, Spain; and Craiova, Romania), with production also halted at its Bridgend and Dagenham engine plants in the U.K. from March 23. The company’s operations in Valencia, Spain, however, will remain in temporary suspension until at least April 27.

More on Ford.

Ford Suspension Of Dividend Levels The Battlefield For Tesla

On Friday, Ford Stock closed at 2012 level ($4.30), after the company announced suspension of its dividend and withdrew its 2020 guidance.

Ford also said it would draw $15.4 billion from two credit lines. The company said that it plans to borrow $13.4 billion under its corporate credit facility and an additional $2 billion under its supplemental credit facility.

How Does This Benefits Tesla?

“Like we did in the Great Recession, Ford is managing through the coronavirus crisis in a way that safeguards our business, our workforce, our customers and our dealers during this vital period,” Ford CEO Jim Hackett said in a statement. “As America’s largest producer of vehicles and largest employer of autoworkers, we plan to emerge from this crisis as a stronger company that can be an engine for the recovery of the economy moving forward.”

CNBC reports that Separately, Ford and its U.S. dealers are offering customers a variety of services, including six months of payment relief for some new car buyers, the company said in a statement. Ford will pay for three months and customers can defer for up to three more for a total of six months, the company said. The program is only for people purchasing 2019 and 2020 model-year vehicles, excluding 2020 Super Duty trucks.

Dividends mean you don’t have to sell shares to realize a return. Although bonds and CDs are more traditional income investments, a stock that pays a dividend also generates income for investors.

Tesla investors don’t invest based on dividend because Tesla don’t pay it. Tesla investors on the other hand, are investing in Tesla based on the future of the company, on the ability of Tesla CEO to make a great impact in the world and help humans transition from dirty ICE cars to clean autonomous electric vehicles.

Dividends are also attractive for investors looking to generate income. However, a decrease or increase in dividend distributions can affect the price of a security. The stock prices of companies that have a long-standing history of dividend payouts would be negatively affected if they reduced their dividend distributions. Conversely, companies that increased their dividend payouts or companies that instituted a new dividend policy would likely see appreciation in their stocks.