Normally, legacy automaker Ford (F) will shut down production for a brief period in summer. The shutdown only lasts about a week or so, but it gives the employees a break at a time when many are considering family vacations anyway. But this year, that will not be the case. Ford is shutting down the shutdown, and putting new life in several plants to keep up with demand on the F-Series pickup line. This was welcome news to shareholders, who sent Ford shares up nearly 3% in Tuesday afternoon’s trading.
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Basically, Ford is trying to make up for lost time, time lost after the Novelis fire that sent supplies of aluminum crashing for a while. Things have been improving since, and Ford needs to start rebuilding its lost inventory as F-Series pickups are apparently starting to get scarce. And to that end, Ford is canceling the one-week downtime period at the Dearborn Truck Plant, along with three others.
That is not all, though. Ford is also adding workers at one plant and adding a shift at another plant to help bulk up inventories on the F-Series. The Dearborn Truck Plant is getting the new shift, reports note, and the Kentucky Truck Plant is getting the extra workers as well as an increase in speed on the line.
“…Working in Silence for Three Years.”
Ford’s development processes, meanwhile, are carrying on. We have heard about Ford’s Skunk Works operation before, and apparently, this operation has been running quietly in the background for the last three years. One thing the Skunk Works has been working on, at last report, is a better electric vehicle.
We know Ford has been working toward that end for some time. After all, Ford has its new lineup of vehicles coming soon built around the same electric platform. And though the demand for electric vehicles has fallen off a bit due to the removal of federal incentives, some states still offer incentives, and these states make decent markets for Ford to try and bring back the electric vehicle line.
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 one Sell assigned in the past three months, as indicated by the graphic below. After a 12.78% rally in its share price over the past year, the average F price target of $13.88 per share implies 20.75% upside potential.
