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Ford delays Oakville EV launch, expands EV and hybrid lines

EditorAhmed Abdulazez Abdulkadir
Published 04/04/2024, 14:54
Updated 04/04/2024, 14:54
© Reuters.

DEARBORN, Mich. - Ford Motor Company (NYSE:F) has announced a revision in the launch schedule for its upcoming electric vehicles (EVs) at the Oakville Assembly Plant in Ontario, pushing back the debut of its all-new three-row electric vehicles from 2025 to 2027. The company cited the need to allow the consumer market for three-row EVs to mature and to leverage advancements in battery technology aimed at enhancing durability and value for customers.

Despite the delay, Ford's commitment to its Canadian manufacturing remains steadfast, with the company working closely with Unifor to minimize the impact on its workforce. Bev Goodman, president and CEO of Ford Canada, emphasized the importance of the revision for a sustainable future for the company and its employees.

Ford's overall EV strategy continues to progress, with the installation of equipment at the Tennessee Electric Vehicle Center at BlueOval City underway. This facility is expected to begin customer deliveries of Ford's next-generation electric truck in 2026, integrating Industry 4.0 principles to improve quality and efficiency. The plant's management team includes experienced leaders from various industry giants, indicating a strong emphasis on innovation and quality.

In Ohio, the expansion of the Avon Lake Assembly Plant is on track to start producing a new electric commercial vehicle for Ford Pro customers by the middle of the decade, with construction milestones being met.

The company is also investing in the development of future EVs, with a skunkworks team in California designing a flexible, affordable EV platform. This effort follows Ford's acquisition of Auto Motive Power (AMP (OTC:AMLTF)) in late 2023, highlighting its dedication to the EV market.

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Construction at BlueOval Battery Park Michigan and the BlueOval SK joint venture battery plants in Tennessee and Kentucky is advancing, supporting Ford's EV expansion.

Ford's Q1 2024 results showed an 86% increase in EV sales and a 42% rise in hybrid sales compared to the previous year. The company is also broadening its hybrid offerings, with plans to equip its entire Ford Blue lineup in North America with hybrid powertrains by the end of the decade.

This announcement is based on a press release statement from Ford Motor Company (NYSE: F), a global automotive leader committed to creating a better world through sustainable and innovative transportation solutions.

InvestingPro Insights

As Ford Motor Company adjusts its timeline for launching new electric vehicles, investors and industry watchers are keeping a close eye on the company's financial health and market performance. According to the latest data from InvestingPro, Ford boasts a significant market capitalization of $54.49 billion, reflecting its status as a prominent player in the Automobiles industry. This stature is further underscored by the company's ability to maintain dividend payments for 13 consecutive years, with a current dividend yield of 5.71%, which is a testament to its commitment to shareholder returns.

InvestingPro Tips indicate that while Ford suffers from weak gross profit margins, with the last twelve months as of Q4 2023 showing a margin of just 9.17%, the company's stock has experienced strong return over the last three months, with a 20.02% total return. This aligns with Ford's recent announcement of increased EV and hybrid sales, suggesting that the market is responding positively to the company's strategic direction in the evolving automotive landscape.

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Moreover, analysts predict that Ford will be profitable this year, a forecast that is supported by the company's performance over the last twelve months, where it was indeed profitable. These insights are particularly relevant for investors considering Ford's position in a competitive industry that is rapidly transitioning towards electric and hybrid vehicles.

To access additional insights and metrics that could further inform investment decisions, readers may consider exploring InvestingPro, which includes more InvestingPro Tips for Ford. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional tips listed in InvestingPro that provide a deeper understanding of Ford's market potential and financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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