We know that legacy automaker Ford’s (F) move to get rid of the Ford Escape has already had some consequences for Ford, and most of them were not good ones. But it turns out that Ford dealerships are not taking this move quietly, and are working to keep those customers in the fold, even without their first choice available. The move gave investors a boost as well, and they sent shares up fractionally in Thursday afternoon’s trading.
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The dealers are concerned. After all, the Ford Escape was a big seller, and without that around, there is less reason to go to a Ford dealership for their next car. So Ford dealers, in turn, want to give Ford Escape buyers who would otherwise go stymied a reason to come back.
Ford National Dealer Council chairman Steve Blasing noted, “We have a strategy to retain Edge and Escape customers with a targeted marketing and incentive plan. We need to keep those customers in the Ford family. So far we’re doing a great job. We need to find volumes in other lines to offset the loss of Escape and Edge. We need a good mix of more affordable packages and we have to offer very attractive payments. If we do both, we can keep Escape and Edge customers in our Ford family.” And so, between incentive payments and some “close-seconds” like the Explorer and Bronco Sport, Ford dealers hope to keep their customer bases on hand.
Ranger Out in New Zealand
Ford took a hit of a different kind out in New Zealand, where it spent several years as the most popular vehicle in the country. But now, Toyota’s (TM) RAV4 is the new leader. The RAV4 sold 11,295 units in New Zealand, while the Ranger could only muster 9,681 units sold. Reports also noted that Toyota is proving so popular in New Zealand that it now represents around 23% of the total market.
It was not all bad news for Ford, though. While the passenger market is now Toyota territory, the Ford Ranger is still a go-to choice in the commercial market. Commercially, Ford beat its second place competitor, the Toyota Hilux, by over 1,300 units total.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 36.02% rally in its share price over the past year, the average F price target of $13.87 per share implies 0.39% downside risk.
