Ford blows away earnings expectations as consumers buy up trucks during pandemic

[Satiricalivory]

Ford Motor blew away Wall Street expectations as well as the company’s forecast earnings for the third quarter on stronger-than-expected demand during the coronavirus pandemic.

Here’s how Ford performed versus what Wall Street expected, based on average analysts’ estimates compiled by Refinitiv.

Adjusted EPS: 65 cents vs 19 cents expected
Automotive revenue: $34.71 billion vs $33.51 billion expected

Ford’s stock jumped more than 7% during after-hours trading before leveling off at about $8.05 a share, up 4.5%. The stock closed Wednesday at $7.70, down 2.8%.

https://www.cnbc.com/2020/10/28/ford...s-q3-2020.html

So much for the pundit dream of a merger. How sad for them.

[casscorridor]

Great, more gas guzzling and obnoxiously oversized vehicles endangering other drivers and pedestrians alike.

[Gistok]

So much for the pundit dream of a merger. How sad for them.

Merger? What do you mean by that? Ford will NEVER merge with anyone. They will buy other companies, as they have in the past... but NEVER a merger. You forget that the Ford family still owns 40% of the voting rights to the company with their Class B shares. There will never be a merger as long as the Ford family still has their shares...

[Satiricalivory]

Merger? What do you mean by that? Ford will NEVER merge with anyone. They will buy other companies, as they have in the past... but NEVER a merger. You forget that the Ford family still owns 40% of the voting rights to the company with their Class B shares. There will never be a merger as long as the Ford family still has their shares...

Oh believe me I know. But back when corona first started and Ford was losing some money a few idiot pundits ran to the media talking about mergers with VW. Which would have been horrible for everybody but stock traders.

[401don]

A couple of years ago I cringed every time Ford or Gm had a big quarter based on trucks and suv's because it seemed so short-sighted. At the same time they were being coaxed into building small cars in the U.S. When they finally got it right with a car like the Cruze nobody wanted them anymore. Now it appears they were right to stop building cars and focus on suv's of all sizes because that's what the market wants. I tend to agree with Jim Kenzie. He's the guy on Canadian tv's Motoring TV show who says suv stands for stupid ugly vehicle. Now that we have enough oil to last for decades the industry is going all in on electric. It's a tough industry to run a company in if you don't have a crystal ball.

[ABetterDetroit]

A couple of years ago I cringed every time Ford or Gm had a big quarter based on trucks and suv's because it seemed so short-sighted. At the same time they were being coaxed into building small cars in the U.S. When they finally got it right with a car like the Cruze nobody wanted them anymore. Now it appears they were right to stop building cars and focus on suv's of all sizes because that's what the market wants. I tend to agree with Jim Kenzie. He's the guy on Canadian tv's Motoring TV show who says suv stands for stupid ugly vehicle. Now that we have enough oil to last for decades the industry is going all in on electric. It's a tough industry to run a company in if you don't have a crystal ball.

I also am stunned at the massive popularity of the return of the station wagon. Lift them some, add front wheel dominate all-wheel drive and everyone has to have one. A amazing about face in what people want in their vehicle. What moms with kids prefer has influenced almost every single persons preference in their vehicle.

[EGrant]

A couple of years ago I cringed every time Ford or Gm had a big quarter based on trucks and suv's because it seemed so short-sighted. At the same time they were being coaxed into building small cars in the U.S. When they finally got it right with a car like the Cruze nobody wanted them anymore. Now it appears they were right to stop building cars and focus on suv's of all sizes because that's what the market wants.

The margins on trucks are also much bigger than cars. I don't know the exact numbers, but I remember when Ford announced the end of the Fusion and Taurus, they talked about how much more profitable the trucks and SUVs were compared to sedans, even if they sell fewer trucks. And apparently they are doing ok upselling sedan drivers into the crossovers like the Escape and Edge.

[Cincinnati_Kid]

The margins on trucks are also much bigger than cars. I don't know the exact numbers, but I remember when Ford announced the end of the Fusion and Taurus, they talked about how much more profitable the trucks and SUVs were compared to sedans, even if they sell fewer trucks. And apparently they are doing ok upselling sedan drivers into the crossovers like the Escape and Edge.

They make $10-12 thousand or more on each full size pickup or SUV they sell. So it's a no-brainer to devote their entire lineup to those types of vehicles.

[rickbak]

Over the last dozen years we've bought one Edge and leased three Escapes. We pick up a new Edge next week. Both solid vehicles; never had a problem with either model. Basically what station wagons were back when I was a kid. Looks like a good move by Ford to concentrate on them and pickups and a couple of iconic brands in the Bronco and Mustang.

[Richard]

They make $10-12 thousand or more on each full size pickup or SUV they sell. So it's a no-brainer to devote their entire lineup to those types of vehicles.

The truck market is insane right now,people are getting more for used trucks then they paid for them new a few years ago.

My only thinking is what happens if there is a change in DC and fracking,which is keeping the cost of fuel down,and the older emissions requirements that were parlayed kicks back in,that could devastate the truck market with a stroke of the pen.

When gas hit $4 per gallon you could not hardly give a truck away and the larger suvs were the number 1 trade in with the cash for clunkers program.

Then what happens?

I remember when the only people that had trucks were those who were in business or had a slide in camper,now you even have soccer moms buzzing around in them.

[401don]

Average transaction prices have basically gone up every month during a pandemic. Never ceases to amaze me how many people will buy a monthly payment and ignore the price for everything from autos to furniture.

[Richard]

^ also boats and anything “toy” related,the prices have doubled but it does not let up even the real estate market is above pre crash prices,I am not buying nothing,just banking and waiting for the crash.

But that’s what happens when you pay somebody $600 a week plus unemployment,they become instant rich and not thinking about when it comes time to pay the piper.

The trade tariffs are kicking in which has cause somethings to double in price which is good,because it makes it feasible to produce in country again.

Nothing stimulates the economy better then free money,I think the south is worse then the north when it comes to staying in debt in order to look good to others,if I cannot pay something off in 3 years,or pay cash for it I do not buy it.

To many things subject to change at any given moment.

[softailrider]

Over the last dozen years we've bought one Edge and leased three Escapes. We pick up a new Edge next week. Both solid vehicles; never had a problem with either model. Basically what station wagons were back when I was a kid. Looks like a good move by Ford to concentrate on them and pickups and a couple of iconic brands in the Bronco and Mustang.

Doesn’t sound like you put a lot of miles on those vehicles. Any new car you buy these days should be good for 60000 plus miles with only replacement of wear item and regular maintenance. I have a Honda Accord that just passed 233000 miles with only 1 front end repair and maintenance, period. Engine and transmission has never been touched. Never leaked a drop of anything, never failed to start, never spent a single night in my garage.

[Richard]

^ that’s just getting broken in for a Honda.

I am seeing 2012 suburbans with over 250,000 miles still bringing top dollar,remember when a US built car was junk at 80,000?

US manufactures have really stepped up their game,my little commercial box truck is powered by a 1992 Chrysler V6 and has 350,000 miles on it.

[rickbak]

Doesn’t sound like you put a lot of miles on those vehicles. Any new car you buy these days should be good for 60000 plus miles with only replacement of wear item and regular maintenance. I have a Honda Accord that just passed 233000 miles with only 1 front end repair and maintenance, period. Engine and transmission has never been touched. Never leaked a drop of anything, never failed to start, never spent a single night in my garage.

Sounds like you got a good deal with your Accord. But what can I say? I'm a Ford guy, my wife has worked at Ford's for 20+ years, we live in Dearborn, we buy/lease what we build. Yes, I know, loyalty is a quaint notion today. But that's how we roll [[literally, in this case).

[softailrider]

Sounds like you got a good deal with your Accord. But what can I say? I'm a Ford guy, my wife has worked at Ford's for 20+ years, we live in Dearborn, we buy/lease what we build. Yes, I know, loyalty is a quaint notion today. But that's how we roll [[literally, in this case).

I’m not a foreign car fan, I would rather buy from the big three. I have a Corvette that I love, I’ve had many other domestic cars. Just trying to make the point that a 3 year 45000 mile lease doesn’t really give you a good idea of how reliable a vehicle is. When it’s a 10 degree morning in January and your 10 year old car is sitting in your driveway and you’re confident it will start and get you to work or wherever you have to go, that’s my idea of good service.

With that being said you also have to give the devil their due, Honda / Toyota for the most part, make really good products.

[Pat001]

If Ford's latest $8.00/share price sounds impressive, consider that Ford stock was trading at $15/share in 2015 and it was paying a quarterly dividend. I wouldn't bet the farm on Ford stock.

[rickbak]

If Ford's latest $8.00/share price sounds impressive, consider that Ford stock was trading at $15/share in 2015 and it was paying a quarterly dividend. I wouldn't bet the farm on Ford stock.

Don't own a farm. But interestingly, we bought a bunch of Ford shares when it dropped into the 4-buck range. So we've doubled our little investment. It's gonna take some time to hit $15/share, but I think they're headed in the right direction. Ford's been written off so many times I've lost count, and yet here they are, still standing.

The quarterly dividend was suspended because of the virus, as were pay raises. The raises were re-instated as of Oct. 1. I don't think dividends will be resumed for another year at least, but who knows?

[bust]

We've been following a cyclical pattern alternating between artificial / stock market growth and responsible correction leading to a real economy that organically rebounds enough ordinary people take prosperity for granted and we become distracted, again, by the next push button issue social media campaign and vote against our better interests. [[They can't win on policy, their policies are bad for the vast majority of us, so they change the topic.)

I was recently in Florida and I've never seen more big trucks, not even in the Detroit area. And almost never a trailer hitch. Quite a few Mercedes, Jaguars, and BMWs too. That doesn't reflect a sensible or in any way equitable economy.

To anyone who claims this bubble is because of $600 extra some unemployed people received for a few months, get real.

And if what they admit we've been due for for years finally happens and the other party is elected we know whom they'll blame. Don't believe them. The mistakes have already been made.

I hope Ford invests the profits from the sale of these trucks into vehicles that make sense for our future. And I hope the other two who for now profit from the Hummer and the Demon/Challenger do too. The future will arrive sooner than we imagine, and while it's forever ingrained in me to root for Detroit, I don't fail to recognize the companies leading us there are not from the area.

Have you seen this?

When One Car Has More Horsepower Than Churchill Downs
https://www.nytimes.com/2020/10/29/b...air-rimac.html

[313WX]

All companies have good quarters and they have bad quarters.

Does there have to be a thread about them every time they occur?

[Gistok]

All companies have good quarters and they have bad quarters.

Does there have to be a thread about them every time they occur?

This thread is a decent discussion about a topic that is important to SE Michigan. You moved to Georgia... so it's not about your neck of the woods... besides, any thread that so many of us agree with Richard... has to be a good thread!

[Satiricalivory]

More fantastic news for Detroit

GM puts up a booming third quarter

DETROIT [[AP) — General Motors is posting huge third quarter numbers, pulling in $4 billion in profit over three months after losing money due to the virus outbreak.

GM's adjusted earnings were $2.83 per share, easily outpacing Wall Street's per-share projections of $1.72, according to a survey by FactSet.
Revenue of $35.5 billion also edged out most expectations.
Shares jumped almost 5% before the opening bell Thursday.

The profit reversed an $806 million loss posted by GM in the second quarter as the company restarted factories that were shuttered by the novel coronavirus.

https://nbc25news.com/news/nation-wo...vcCb3nyEcjoYJ4

[401don]

More fantastic news for Detroit

GM puts up a booming third quarter


https://nbc25news.com/news/nation-wo...vcCb3nyEcjoYJ4

GM is also reopening Oshawa, Ontario assembly. This is a big deal in Ontario after a long, ugly dispute with the Canadian union when the closing was announced. It will open in Jan. 2022, building full-size pickups. Shows they don't expect this market spike for trucks to be temporary.

https://www.freep.com/story/money/ca...ct/6126062002/

[Satiricalivory]

GM to hire 3,000 for tech jobs as part of EV push

Detroit — General Motors Co. plans to hire 3,000 employees in engineering, design and IT to help push forward as a leading electric vehicle maker and to develop more in-car connected technologies, the automaker said Monday.

https://www.detroitnews.com/story/bu...bZqUfyVR5Wc57A

I looked at the job listings, vast majority are in Michigan as expected.

[401don]

GM to hire 3,000 for tech jobs as part of EV push



https://www.detroitnews.com/story/bu...bZqUfyVR5Wc57A

I looked at the job listings, vast majority are in Michigan as expected.

GM did announce most of the positions could be worked remotely. Could they not be hired to work "out of" Warren, etc. without being on-site.