Legacy automaker Ford (F) smells trouble. Its new ad campaign that it started yesterday made that point very clear, as it looked for some brands to not survive the changes coming to the market. And Ford is looking to make sure it does survive. One of its biggest plans is to put the Focus front and center in Europe, and as an SUV, no less. The move seems to be working for Ford, as shares gained nearly 3% in Thursday afternoon’s trading.
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Ford looks to roll out a new Focus SUV starting in 2027. Reports note it is likely to be based on the “C2” platform, which Ford has been using to bring out mid-sized C-segment cars throughout Europe. In fact, the C2 was reportedly put to use in the Focus as far back as 2018. This time, though, will feature a key difference: a pure electric powertrain, something that has not been seen on a C-segment vehicle yet, reports noted.
Bill Ford, Ford’s executive chairman, explained why Ford is still offering internal combustion engine (ICE) vehicles in Europe despite an ongoing push to electric. Ford noted, “What went wrong is that the regulators got out ahead of the customers. That’s never a good situation. In the future, electrification will play a very important role in transportation, but it won’t be the only part. The ICE business will be gradually phased out, but it won’t disappear. What happens will vary according to region.”
New Winner in Brand Loyalty
In an unexpected turnaround, Ford managed to take the top rating in brand loyalty from its former holder: Tesla (TSLA). Around 60% of shoppers trading in a Ford did so to buy another Ford. This compares to 58.1% for Tesla, and 58% for Chevrolet (GM). Interestingly, the same report noted that most car buyers are remaining loyal, with 51.1% of all car buyers sticking to their brand of choice.
Just to top it off, this same report noted that Tesla owners are departing, not just for other car companies’ electric vehicle lines, but also, for their ICE vehicles as well. Some of these owners are leaving the entire electric vehicle concept behind.
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, eight Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 7.53% rally in its share price over the past year, the average F price target of $10.77 per share implies 8.14% downside risk.
