Way back in the closing weeks of last year, a notion emerged from legacy automaker Ford (F) that left a lot of people scrambling. Ford had been actively reconsidering the notion of the dealership, and what role it played at Ford. While not much ever came out of that plan, that may have been the best news Ford could get, as it recently applauded its dealers for helping improve performance at Ford. Investors were just glad to see improvement, and sent shares up modestly in Wednesday afternoon’s trading.
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Ford had been considering changes to the dealership as far back as last October, but Ford ultimately stuck with the dealership model as popularized by Henry Ford himself. And CEO Jim Farley, during a local event, came out in support of those very same dealers, pointing out that they “…can take an Edge customer and say, ‘Would you be interested in a Mach-E?’”. Farley declared that “…salesmanship that we can’t do at the company.”
Farley also pointed out the dealers are also calling on Ford to help bring in service technicians, as these are increasingly difficult to find. The dealers are also encouraging Ford to set up “…more software and technical hotlines” for sales reps to try and answer customers’ questions about software in the vehicles. All of these points combine to make a very good reason why Ford seems to be sticking with the dealership as it is.
The Great Charger Giveaway
The recent changes coming up to electric vehicle tax incentives are hitting everybody, but not necessarily equally. The Ford Power Promise, meanwhile, continues in earnest, and is now operating through September. For those not familiar, the Ford Power Promise gives those who purchase a new Ford electric vehicle a free home charger and installation accordingly.
But with electric vehicle tax credits expected to sunset on September 30, so too does the Ford Power Promise, reports note. Given that a Level 2 charger can cost close to $1,000 by itself, and installing it can cost anywhere up to $10,000, Ford’s deal was a very welcome one for new electric vehicle buyers. So, for those who want to make the switch to electric, now seems to be a good time to do just that.
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, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After an 11.31% loss in its share price over the past year, the average F price target of $9.71 per share implies 17.89% downside risk.
