Just yesterday, we heard about how legacy automaker Ford Motor Co. (F) was likely facing some new labor troubles with its Kentucky battery plant now that the United Auto Workers (UAW) had a “supermajority” of union members in place there. But now, Ford is also shutting down a planned battery plant in Quebec, Canada.
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The plant was valued at $1.2 billion and would have been built in Becancour, Quebec. Interestingly, other reports note that this is the second time this year that the plant has been halted, though this time it is due mainly to concerns about Ford’s electric vehicle strategy.
The plant was to be a joint venture between South Korea’s SK ON, EcoPro BM, and Ford. The plant was halted in April over design issues, as well as some troubles in selecting a contractor to carry out the work. Construction started in May, but now the project has apparently hit a wall as Ford is said to be launching a reevaluation of the companies’ EV approach.
An Unexpected Win
Separately, a Ford Mustang recently took on a Dodge Challenger. As for how it turned out, the word “humiliated” was involved and it was the Mustang that did the humiliating. The Dodge Challenger Demon 170 was supposed to be “…the ultimate internal combustion engine muscle car.” But when it took on a Fox Body Mustang at Mission Raceway Park in British Columbia, Canada, the “ultimate” quickly found itself wanting.
Of course, the Mustang did have a few upgrades, including larger tires on the rear axle, as well as a new exhaust system. But given that the Mustang ran the quarter mile in 9.78 seconds while the Challenger could not crack 10 seconds, “humiliation” does seem to apply.
Is Ford Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on four Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 15.38% rally in its share price over the past year, the average F price target of $11.29 per share implies 0.67% upside potential.
