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Mar 29, 2019
Ford (F, $8.79) cuts down passenger vehicles, focuses on commercial ones

Ford (F, $8.79) cuts down passenger vehicles, focuses on commercial ones

Automaker giant Ford Motor Company announced its decision to stop producing passenger vehicles offered through a joint venture called Ford Sollers with Russian automaker Sollers PJSC while commercial vans will still continue to be produced. Three of the venture’s four factories will be closed in June and Soller’s will own 51% of the joint venture with a fresh focus on commercial vehicles in Russia. This restructuring of the deal between the companies is part of a larger move to boost profitability in Europe.

Ford confirmed that the restructuring will come at a one-time pre-tax expense between $450 - $500 million out of which roughly $250-$300 million will be non-cash accounting charges, and the remainder roughly $200 million will be cash charges. Ford further confirmed that its global restructuring effort will generate a total of about $11 billion in charges over the next few years, with about $7 billion of those charges being cash charges.

But this isn’t the first time that Ford and Sollers have restructured their deal. In 2014, about 1,000 jobs were cut after the company suffered heavy losses in the region. But after its rival General Motors (GM) announced that it would exit the Russian market, Ford took control of the joint venture to amend ways. However, nearly decade-old Russian joint venture hasn't been worth the effort, as Ford never came close to generating the returns it had expected on the invested capital.

The current strategic view of Ford’s Russian business was long overdue as the company has been looking at investing in new products and businesses that had the potential to generate better margins over time. As customers have been more inclined towards low priced vehicle types, Ford has been struggling for some time now. So, it’s good news for investors that Ford will be focusing more on commercial vehicles from now.

Related Ticker: F

F's Stochastic Oscillator is remaining in oversold zone for 13 days

The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The 50-day moving average for F moved above the 200-day moving average on May 29, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where F advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 251 cases where F Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for F moved out of overbought territory on June 02, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Momentum Indicator moved below the 0 level on June 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on F as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for F turned negative on June 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where F declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

F broke above its upper Bollinger Band on May 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. F’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.501) is normal, around the industry mean (9.340). P/E Ratio (11.838) is within average values for comparable stocks, (582.359). F's Projected Growth (PEG Ratio) (8.543) is very high in comparison to the industry average of (2.891). Dividend Yield (0.043) settles around the average of (0.038) among similar stocks. P/S Ratio (0.297) is also within normal values, averaging (13.011).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. F’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

Notable companies

The most notable companies in this group are Tesla (NASDAQ:TSLA), General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), NIO Inc. (NYSE:NIO).

Industry description

Automobiles continue to be arguably the most popular form of passenger travel in the U.S., and major automobile makers have revenues and market capitalizations running into multi-billions. In recent years, the industry has been experiencing some path-breaking innovations like electric vehicles and self-driving technology. While there are long-standing companies like General Motors, Ford, and Toyota Motors operating in this space, there are also emerging/rapidly growing players like Tesla – which has had a major role in the growing popularity of the electric vehicle market. With technological advancements taking steam in the auto space, we’ve also witnessed collaborations (or talks of potential partnerships) of carmakers with tech behemoths like Google’s subsidiary, Waymo.

Market Cap

The average market capitalization across the Motor Vehicles Industry is 62.69B. The market cap for tickers in the group ranges from 3.72K to 1.43T. TSLA holds the highest valuation in this group at 1.43T. The lowest valued company is ZAPPF at 3.72K.

High and low price notable news

The average weekly price growth across all stocks in the Motor Vehicles Industry was -3%. For the same Industry, the average monthly price growth was -13%, and the average quarterly price growth was -20%. AIIO experienced the highest price growth at 47%, while DCX experienced the biggest fall at -51%.

Volume

The average weekly volume growth across all stocks in the Motor Vehicles Industry was -3%. For the same stocks of the Industry, the average monthly volume growth was -6% and the average quarterly volume growth was 61%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 57
P/E Growth Rating: 60
Price Growth Rating: 66
SMR Rating: 93
Profit Risk Rating: 93
Seasonality Score: 19 (-100 ... +100)
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General Information

a manufacturer of automobiles and trucks

Industry MotorVehicles

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Industry
Motor Vehicles
Address
One American Road
Phone
+1 313 322-3000
Employees
177000
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https://www.ford.com
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