Ford Motor Company (F - Free Report) announced the production restart of its F-150 pickup truck at its Dearborn, MI facility on Friday. While the production of the same model will resume at its facility in Kansas City, MO and its F-series truck hub in Louisville, KY on Monday.
The production of the F-150 truck was stopped on May 7. An explosion on May 2 at its parts supplier, Meridian Magnesium plant, led to a shortage of parts for manufacturing the F-150 pickup trucks. The disaster at Eaton Rapids, MI hub caused major manufacturing disturbance in the automotive industry, forcing many automakers to make alterations or halt production.
In order to help Meridian from the disaster, Ford, along with suppliers and contractors, removed 19 dies from the damaged facility. This included shifting an 87,000-pound die from Eaton Rapids to Nottingham, U.K. by using one of the largest cargo planes, Antonov. A die is a tool that is used to cut or shape material, using a press. The company also examined and repaired dies to restart the production at Meridian Magnesium’s Eaton Rapids facility.
Ford Motor Company Price and Consensus
The best-selling vehicle of the United States, F-150 full-size pickup truck generated revenues of $41 billion in 2017. The figure comprised of roughly 28% of Ford’s total sales and also contributed a major share in profits. For second-quarter 2018, the company anticipated an adverse impact of 12-14 cents per share due to the production halt. Further, this led to temporary laying-off of workers from the company’s three plants that manufacture the pickup truck.
Over a month, Ford’s stock has inched up 0.6%, outperforming 4.1% decline of the industry it belongs to.
Zacks Rank & Stocks to Consider
Ford currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. (MGA - Free Report) , General Motors Company (GM - Free Report) and Ferrari N.V. (RACE - Free Report) . Magna and General Motors carry a Zacks Rank #2 (Buy) while Ferrari sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Magna has an expected long-term growth rate of 8.5%. In a year’s time, shares of the company have gained 49.3%.
General Motors has an expected long-term growth rate of 5.5%. Shares of the company have risen 17.1% over the past year.
Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 58.9% over the past year.
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