So while legacy automaker Ford (F) is preparing for job cuts and facing down a short-lived strike in Cologne, it also faces some new job cuts elsewhere in the organization. About 350 jobs in the software division are set to be cut, and despite this, investors seemed pretty happy about the plan. They sent shares up, albeit fractionally, in Tuesday afternoon’s trading.
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In an effort to “improve efficiency,” reports noted, Ford cut its connected-vehicle software division down by 350 people. These people work mainly in the United States and Canada, and what proportion of firings came from what country was unclear. But given that that 350 or so jobs make up around 5% of Ford’s connected software operations, it is clear that Ford is not giving up on software in cars.
Ian Thibodeau with Ford noted, “We consistently review our organization to make sure we are operating efficiently and effectively in a fast-paced and dynamic environment. We are making changes within our Connected Vehicle Software team to ensure we have the right talent and organization to deliver the world’s best next-generation connected vehicles. This will include some separations.” It was not all firings, however; Ford hired a new Chief Accounting Officer, Kyle Crockett, who will be handling all of Ford’s accounting and its financial reporting. He will start shortly after the filing of Ford’s second quarter 10-Q report.
A New Racing Connection
We know that Ford has been focused on one of its new guiding dogmas, No Boring Cars, for some time now. And in that vein, it has been working a lot more on its racing chops. Its partnership with Red Bull Racing in the Formula One circuit seems to be ramping up as well, and word slipped out about the kind of engine power Ford will be bringing to the event.
There are no concrete numbers coming out, the reports note, but Ford Performance’s Mark Rushbrook offered some reports that suggested things were at least proceeding well. Rushbrook noted “There is obviously still a lot of work to do and a lot to prove in terms of durability, but the partnership — the openness, the trust and the contribution from both sides — has been excellent so far. It’s everything we hoped for and actually more than we expected.”
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 11 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 15.19% loss in its share price over the past year, the average F price target of $9.82 per share implies 8.53% downside risk.
