Ford (NYSE:F) is reportedly planning to sell its plant in Saarlouis, Germany, to BYD Company (OTC:BYDDY), which focuses on electric vehicle (EV) manufacturing. The Ford plant currently produces the Focus line and employs 6,190 people. This actually dovetails well with plans Ford brought out earlier that would see 3,200 jobs in Europe cut. It also works well with reports that noted the Saarlouis plant was set to shut down in 2025 anyway.
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The talks with BYD Company are still in fairly early stages, which means they may not ultimately go through. However, the move to sell a plant that was likely going to shut down anyway is a sound one. Ford’s pivot away from the gas market to focus more on the electric vehicle space is also a good one; the company only recently had a major win at Motor Trend with its Ford F-150 Lightning EV. Capitalizing on such a win is a clear positive for investors.
Wall Street, meanwhile, is of mixed opinions about Ford stock right now. With three Buy and three Hold recommendations, analyst consensus calls it a Moderate Buy. The stock also boasts 29.06% upside potential thanks to its average share price target of $16.50.
