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Ford Halts Production in Venezuela till April on Weak Demand
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Ford Motor Company (F - Free Report) halted production in Venezuela last week and said that it will not start production before April next year. This decision has been taken in the wake of sluggish demand for new cars in South America. The shutdown will affect around 2,000 workers.
This temporary halt in production is not likely to affect Ford’s results as the company reports its Venezuela operations separately. Since the first quarter of 2016, Venezuela is the only fully owned Ford unit. However, weakness in the South American market will remain a major drag for the automaker.
Ford is the only automaker producing vehicles in large scale in Venezuela. Vehicle production is less than eight per day in the region due to recession. Till Nov 2016, Ford has produced 2,253 vehicles out of total of 2,768 vehicles manufactured in Venezuela.
In 2014, Ford halted production in Venezuela for a month due to shortage of foreign currency which is required to pay the parts suppliers.
Ford also said that it plans to temporarily shut down its Kansas City, MO pickup truck and van plant in order to match production and demand. Operations in the plant will be suspended for a week in Jan 2017. This decision has also been taken by the company to bridge the gap in supply and demand.
The Kansas City plant mainly manufactures F-150 pickup trucks and Ford Transit vans. Earlier this year, Ford has also closed this plant for a week.
Other automakers are also taking steps to balance demand and production. Recently, General Motors Company (GM - Free Report) announced plans to suspend production in five U.S. plants starting Jan 2017.
Price Performance
So far this year, Ford’s shares have lost 9.3% while the Zacks categorized Auto Manufacturers-Domestic industry saw a 3.09% increase. The drop in the stock price has been led by weak operating results in most regions and a dismal forecast for the full year.
Zacks Rank & Key Picks
Ford currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Allison Transmission has a long-term expected growth rate of 11%.
Rush Enterprises has a long-term expected growth rate of 15%.
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Ford Halts Production in Venezuela till April on Weak Demand
Ford Motor Company (F - Free Report) halted production in Venezuela last week and said that it will not start production before April next year. This decision has been taken in the wake of sluggish demand for new cars in South America. The shutdown will affect around 2,000 workers.
This temporary halt in production is not likely to affect Ford’s results as the company reports its Venezuela operations separately. Since the first quarter of 2016, Venezuela is the only fully owned Ford unit. However, weakness in the South American market will remain a major drag for the automaker.
Ford is the only automaker producing vehicles in large scale in Venezuela. Vehicle production is less than eight per day in the region due to recession. Till Nov 2016, Ford has produced 2,253 vehicles out of total of 2,768 vehicles manufactured in Venezuela.
In 2014, Ford halted production in Venezuela for a month due to shortage of foreign currency which is required to pay the parts suppliers.
Ford also said that it plans to temporarily shut down its Kansas City, MO pickup truck and van plant in order to match production and demand. Operations in the plant will be suspended for a week in Jan 2017. This decision has also been taken by the company to bridge the gap in supply and demand.
The Kansas City plant mainly manufactures F-150 pickup trucks and Ford Transit vans. Earlier this year, Ford has also closed this plant for a week.
FORD MOTOR CO Price
FORD MOTOR CO Price | FORD MOTOR CO Quote
Other automakers are also taking steps to balance demand and production. Recently, General Motors Company (GM - Free Report) announced plans to suspend production in five U.S. plants starting Jan 2017.
Zacks Rank & Key Picks
Price Performance
So far this year, Ford’s shares have lost 9.3% while the Zacks categorized Auto Manufacturers-Domestic industry saw a 3.09% increase. The drop in the stock price has been led by weak operating results in most regions and a dismal forecast for the full year.
Ford currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term expected growth rate of 11%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>