So while we know that legacy automaker Ford (F) has been eager to branch out into electric vehicles for some time now, we also know that there is still a lot of interest out there in gas engines. Whether it is because of performance or simply familiarity, people still want the cars you put gas in. And that led to Ford turning back to Lem Yeung, a major name in internal combustion engine design. That news did not sit well with investors, and shares were down over 1.5% in Monday afternoon’s trading.
Ford’s shift to electric vehicles back in 2021 left Yeung with little to do at Ford, and Yeung accepted a buyout at the age of 52. Fast forward four years, and Yeung is now back in play, his decades of design experience in internal combustion engines in demand once more. Yeung was among the first to point out that Ford’s electric ambitions were a bit larger than the reality permitted, and that the current lineup was simply not “…really selling or generating profits.”
Moreover, Yeung noted that the rise in warranty claims is “without question” connected to “brain drain” at Ford. The focus moved off of engines, a report from IEEE Spectrum noted, and that cost Ford its best technicians and engineers. Now, Ford is trying to rebuild from those losses, and the frequent recall notices we have seen—and sometimes charted here—in recent years is directly connected therein.
Snake Party Night
And, Ford is even starting to bring back some other names, like the Shelby Cobra. Reports note that Ford has not had a Ford Mustang Cobra go up for sale in quite some time, but new trademark filings suggest that the Cobra line could be poised for a comeback. Since we have found out previously that Ford is considering new Mustang variants—a part of the ongoing “no boring cars” policy—the Cobra’s return in trademark might bring that back too.
Moreover, the Ford Fiesta may be set to make a comeback too. Reports suggest that Ford’s partnership efforts with Volkswagen (VWAGY) could be about to bear even more fruit, as the Fiesta could get reborn as an “affordable electric vehicle based on the VW ID.2”. The notion of an “entry-level electric hatchback” may not have received official comment from Ford, but considering that the Ford / Volkswagen partnership has already gone well, this could continue from here.
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, 11 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 12.87% loss in its share price over the past year, the average F price target of $9.50 per share implies 6.13% downside risk.
