Back in the 1980s and 1990s, legacy automaker Ford (F) had a slogan that carried it pretty successfully through that time. “Quality is job one.” This may have fell by the wayside in recent years, but there are signs Ford wants to revive it as evidenced by a new “chief of quality” hire. Investors were cautiously optimistic, sending shares up fractionally in Thursday afternoon’s trading.
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The name of the new hire has not been announced yet, noted the Detroit Free-Press. But we do know whoever it is will be tasked with paring back recalls and reducing warranty costs as well, both of which will help Ford save cash.
The new hire will be replacing Jim Baumbick, who will in turn be transferred to take on the electric vehicle (EV) program, a point Ford has been trying to get off the ground with mixed results for some time now. Baumbick has had control of the quality division since 2022, but now handles the “vehicle programs” team. That now includes electric vehicles, but also includes gas vehicles, the report noted. The whole shift is expected to start in the early days of 2025.
“We Take It Very Seriously.”
This comes at a time when Ford is increasingly interested in the EV market, but the market seems less than interested in Ford, or even in any EV models at all. But Ford also put out a report titled The Proof is in the Power: 2024 Commercial Electrification Trends, that demonstrates what potential EV buyers are looking for in their purchases.
One major conclusion is that the early adopters—which is still very much where we are right now—are in the “show, not tell phase”. Those customers want to understand why EV models are a “good long term business decision,” and are particularly open to hearing about benefits and addressing challenges up front. With an earlier report from Ford Pro demonstrating potential savings of 14,000 Euros over the course of three years by using electric vans, there are hard numbers starting to emerge in terms of value.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on four Buys, eight Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 11.74% loss in its share price over the past year, the average F price target of $10.89 per share implies 11.86% upside potential.
