Will Ford Motor Company Double the Company's Value this Year? - Andy Walsh

 Andy Walsh

Mr. Roddy

IHSS
3 February 2021

Will Ford Motor Company Double the Company's Value? 

Ford Motor Company is one of the top three vehicle producers in the country and is number 4 globally. This is crazy considering that Ford is not a container company like Volkswagen or General Motors. In 2019, Ford Motor Company was the leader in truck and SUV sales and sold two trucks per minute on average throughout the year. This year, if CEO Jim Farley plays it right, Ford could be looking at record breaking numbers and profits. 

This all began earlier last year when Ford released the all new 2021 F-150. The F-series pickups are the number one selling vehicle in the country and is the breadwinner of Ford’s operation. This new truck was top of the line, featuring a hybrid engine option and an updated interior. The automotive world has loved the truck so far and Ford is already having issues keeping them in stock at the dealerships. Considering the amount of trucks Ford usually sells, the new truck alone could vastly boost Ford’s profits. However, Ford has also released two other vehicles this year. 

The all new Mustang Mach-E is a fully electric SUV that Ford has designed. As one of the leaders in SUV sales, with this new EV (Electric Vehicle), Ford is looking at a lot of profit. The second vehicle Ford has released is the all new Ford Bronco. Ford discontinued the Bronco back in 1998 and people have wanted it back ever since then. For the past 15 years, the Jeep Wrangler has dominated the off-roading world with very little competition. However, Ford intends to change that and the automotive industry seems to agree. The new Bronco is better than the Wrangler in virtually every way and consumers will be excited to have a “Jeep like” competitor in the off-road market. 

Ford has really thought through the Bronco and what consumers want and they released something that Jeep never has. The after-market mods industry has made millions of dollars by offering replacement parts for jeeps and virtually every other vehicle. However, Ford is more intelligent than that. In order to maximize profits, Ford has manufactured hundreds of aftermarket parts that you can get on your Bronco right off the assembly line. By doing this, Ford has automatically dominated the aftermarket parts market that will insure that Ford will have a steady stream of profit for years to come. 

That's not all for Ford this year. Not only is Ford releasing three new vehicles. On Monday, Ford released new information about a 6 year, multi-billion dollar deal with Alphabet Inc. which is the owner of Google. “A new revenue source of that magnitude might double Ford’s $43 billion market capitalization and send its stock soaring to $25, up from less than $11 now, Adam Jonas, Morgan Stanley’s automotive analyst, wrote in a note to investors Tuesday” (Naughton). Ford has begun to tap into software, artificial intelligence, and cloud computing in order to maximize the passenger connectivity in their vehicles. This was a very smart investment by Ford because by doing this, they ensure that their vehicles will not only maintain the same Ford build quality, but also be able to compete with the technical features from companies like Tesla. This will also allow ford to have all access to google products like Google Maps, Google Play and Google Assistant to include in their vehicles. 

This update is not only important to Ford Motor, it is also important to the study of economics. This is a great example of corporate relations between two very different companies. Ford doesn’t need Google to build their vehicles and Google doesn’t need Ford to succeed either. However, by making a deal like this, Ford is able to upgrade the technology offered in their lineup in order to stay ahead of the competition and Google is able to expand their product into different realms of the economy. Hopefully, with all of these new updates in the company, Ford will be able to have the greatest year in the company's history. 









                                                                            Works Cited

Lee, I. (2021, February 3). Ford's stock COULD Surge 127% if the company is able to carve out a new revenue stream from data subscriptions, Morgan Stanley says. Retrieved February 03, 2021, from https://markets.businessinsider.com/news/stocks/ford

Naughton, K. (2021, February 2). Morgan Stanley Sees Ford Reaping $5 Billion From Google Deal. Retrieved February 03, 2021, from https://www.bloomberg.com/news/articles/ 




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