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S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
How will EU ban and West's price cap on Russian diesel work?
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
Evacuations urged in Ohio town as train wreck smolders
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
How will EU ban and West's price cap on Russian diesel work?
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
Evacuations urged in Ohio town as train wreck smolders
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Route to Super Bowl dangerous for Mexico's avocado haulers
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
Europe bans Russian diesel, other oil products over Ukraine
Biden's State of the Union to tout policy wins on economy
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
How will EU ban and West's price cap on Russian diesel work?
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
Evacuations urged in Ohio town as train wreck smolders
'Knock at the Cabin' knocks off 'Avatar' at the box office

Ford Revving Up Production Of EV Power Units At U.K. Plant

Key Points

  • Ford said Thursday it would invest $180 million to transition a U.K. factory away from internal combustion engines and toward EV power systems. 
  • It's currently focusing its AI efforts on driver-assisted technologies, rather than self-driving vehicles. 
  • Ford, along with other automakers, reports November sales on Friday, with industry analysts expecting numbers to come in flat. 
  • 5 stocks we like better than Ford Motor
Ford Revving Up Production Of EV Power Units At U.K. Plant

Although EV startups such as NIO (NYSE: NIO) and Mullen Automotive (NASDAQ: MULN) are grabbing attention, along with 800-pound gorilla Tesla (NASDAQ: TSLA), long-established automakers such as Ford (NYSE: F) and General Motors (NYSE: GM) are quickly ramping up EV production and marketing.

Ford said Thursday that it would invest $180 million to increase production of EV power units by 70% at a plant in the U.K. It’s part of the company’s push to bring more EVs to market and transition its products away from internal combustion engines. 

While, GM’s EVs are in the spotlight for a poignant reason, as a commercial for its models including Volt, Blazer, Equinox, and Silverado is set to “Everywhere,” written by Fleetwood Mac’s Christine McVie, who died on Wednesday, Ford’s announcement is an important signal. 

Ford’s move is part of the company’s European electrification plan, which is focused on zero-emission cars by 2030, followed by all vehicles five years later. The power units manufactured at the plant, in Halewood, England, will be installed in 70% of Ford EVs sold in Europe by 2026.


The plant currently makes transmissions for internal combustion vehicles but is transitioning to EV parts manufacturing. The power unit is made there replaces conventional engines and transmissions.

Slashing AI Spending

That’s a clear sign that the auto industry is changing at a rapid pace. In October, Ford said it had slashed capital spending on its artificial intelligence-powered Level 4 driver assistance systems.

In its third-quarter earnings release, the company noted that “large-scale profitable commercialization of Level 4 advanced driver assistance systems will be further out than originally anticipated.

However, it added that “Development and customer enthusiasm for benefits of L2+ and L3 ADAS warrant dialing up the company’s near-term aspirations and commitment in those areas.”

The Level 2 and Level 3 driver assist technologies typically include features such as rear-end accident avoidance and lane-centering. Cars currently on the market, even those a few years old, now utilize these technologies. 

In contrast, Level 4 technologies deliver something closer to a fully self-driving experience. The AI in this case calculates when a crash may be about to occur, and corrects accordingly. It also allows hands-free driving. 

Although Ford said its partner in the L4 systems, Argo AI, which also had investment from Volkswagen (OTCMKTS: VWAGY), “had been unable to attract new investors.” Ford took an impairment charge in the quarter related to Argo AI’s closure and said it would hire some of Argo AI’s engineers.

In the third-quarter earnings conference call, Ford chief financial John Lawson emphasized that the company is very bullish on the potential for driver-assisted technologies, despite not seeing “a profitable, scalable business in the L4, L5 space for at least five years. We also see that to get there, it's going to take billions of dollars.”

Ford is deploying existing capital and human resources toward the L2+ and our L3 systems. “We believe that addressable market expands our entire product portfolio from our retail customers to our commercial customers,” Lawson said.

Flat Sales Expected

Ford is slated to release its November sales figures on Friday. Industry analyst J.D. Power-LMC Automotive forecast industry-wide sales to be flat for the month, as higher vehicle prices and higher interest rates mute demand. 

Within the automaker's industry group, Ford’s price performance lags European car makers, including Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS: BMWYY), commonly known as BMW, as well as Stellantis (NYSE: STLA), whose brand portfolio includes Peugeot, Groupe PSA, Citroën, Opel, Dodge, and Chrysler.

Ford’s earnings and revenue track records have been erratic. Earnings growth declined in four of the past eight quarters, but there have also been quarters where increases looked good, due to easy comparisons over sluggish sales in 2020, due to pandemic restrictions.

For the full year, Wall Street sees Ford earning $1.98 per share, an increase of 25% over 2021. That’s seen declining by 11 next year, to $1.76 per share. 

Ford Motor is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Should you invest $1,000 in Ford Motor right now?

Before you consider Ford Motor, you'll want to hear this.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Ford Motor (F)
1.9252 of 5 stars
$13.23-7.6%4.54%-25.94Hold$16.49
General Motors (GM)
2.6303 of 5 stars
$41.13-0.9%0.88%6.71Moderate Buy$48.72
Tesla (TSLA)
2.3778 of 5 stars
$189.98+0.9%N/A52.43Hold$208.97
NIO (NIO)
2.3616 of 5 stars
$11.19-6.4%N/A-11.19Moderate Buy$21.75
Volkswagen (VWAGY)
3.0437 of 5 stars
$18.07-1.4%2.93%5.06Hold$190.00
Bayerische Motoren Werke Aktiengesellschaft (BMWYY)
1.8495 of 5 stars
$34.97-1.5%4.15%N/AHold$101.40
Stellantis (STLA)
1.8396 of 5 stars
$16.33-1.6%N/AN/AModerate Buy$21.00
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

Contributing Author: Retirement, Asset Allocation, and Tax Strategies

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies. Kate also serves as a capital-markets contributor at Forbes.com, and is an expert columnist for the investment advisory channel at U.S. News & World Report.
Contact Kate Stalter via email at stalterkate@gmail.com.

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