Ford: shares fairly flat after strategic update.
(CercleFinance.com) - Shares of Ford are up slightly (+0.
1% at 12.3 dollars) on Wednesday after the US carmaker yesterday unveiled a strategic plan for investors.
The company said it plans to attack expenses, reducing automotive cost growth by 50% through 2022, while reducing engineering costs by 4 billion dollars over the next five years.
To do so, Ford will increase the use of common parts across its full range of vehicles, reduce order complexity and build fewer prototypes.
The company will also reallocate 7 billion dollars of capital expenditure from cars to SUVs and trucks.
UBS analysts said the meeting provided the first color on how new CEO, Jim Hackett, sees Ford's future, with the main priority being for the group to keep 'fit'.
"We liked CEO Hackett's overall plan - focused on big data (connectivity), partnering on tech (ex. Argo), and moving faster on electric vehicles development," UBS said.
"However, the plan was light on financial details that would get investors more excited," the broker added, reiterating its "buy" rating on the stock and maintaining a 15 dollar target price.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
1% at 12.3 dollars) on Wednesday after the US carmaker yesterday unveiled a strategic plan for investors.
The company said it plans to attack expenses, reducing automotive cost growth by 50% through 2022, while reducing engineering costs by 4 billion dollars over the next five years.
To do so, Ford will increase the use of common parts across its full range of vehicles, reduce order complexity and build fewer prototypes.
The company will also reallocate 7 billion dollars of capital expenditure from cars to SUVs and trucks.
UBS analysts said the meeting provided the first color on how new CEO, Jim Hackett, sees Ford's future, with the main priority being for the group to keep 'fit'.
"We liked CEO Hackett's overall plan - focused on big data (connectivity), partnering on tech (ex. Argo), and moving faster on electric vehicles development," UBS said.
"However, the plan was light on financial details that would get investors more excited," the broker added, reiterating its "buy" rating on the stock and maintaining a 15 dollar target price.
Copyright (c) 2017 CercleFinance.com. All rights reserved.