F - Ford Motor Company

NYSE - NYSE Delayed price. Currency in USD
9.08
+0.04 (+0.44%)
At close: 4:02PM EST

9.06 -0.02 (-0.22%)
After hours: 6:52PM EST

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Trade prices are not sourced from all markets
Previous close9.04
Open8.95
Bid9.06 x 41800
Ask9.08 x 47300
Day's range8.94 - 9.10
52-week range7.41 - 10.56
Volume23,787,862
Avg. volume34,877,946
Market cap36.001B
Beta (3Y monthly)1.07
PE ratio (TTM)22.70
EPS (TTM)0.40
Earnings date4 Feb 2020
Forward dividend & yield0.60 (6.64%)
Ex-dividend date2019-10-21
1y target est10.22
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    Poland Rebukes Netflix After ‘Terrible Mistake’ on Holocaust

    (Bloomberg) -- Poland’s prime minister wrote an official letter to Netflix Chief Executive Officer Reed Hastings requesting that the media streaming company correct facts about the Holocaust in its “The Devil Next Door” documentary series.The European Union member lurched into the international spotlight last year after its nationalist ruling Law & Justice party outlawed the phrase “Polish death camps.” It also criminalized suggesting that the nation was complicit in the mass murder of Jews and other people by the Nazis during their occupation of the country in World War II.A Netflix spokesperson said the company is “aware of the concerns” about the show and is “urgently looking into the matter” after Prime Minister Mateusz Morawiecki wrote to Hastings.Morawiecki called out Netflix for what he called “a terrible mistake” in the five-part series. The show focuses on John Demjanjuk, a retired Ford Motor Co. auto mechanic who was stripped of his U.S. citizenship and convicted by a German criminal court for aiding in the murder of Jews during the Holocaust.The series showed a map of death camps that said they were located in Poland, using the country’s current borders.The Polish government has repeatedly pushed for commentary on the death camps to label them as being operated by the Nazis in “German-occupied Poland,” because the eastern European nation had no government of its own on its home soil after the invasion of Adolf Hitler’s forces.“Not only is the map incorrect, but it deceives viewers into believing that Poland was responsible for establishing and maintaining these camps,” Morawiecki wrote, saying he believed it was an “unintentional” mistake. “Today, we still owe this truth to the victims of World War II.”Morawiecki enclosed a 1942 map in the letter, which was backed by a comment from the Auschwitz Memorial saying that “more accuracy” should have been expected from the production.(Updates with details of complaint in sixth paragraph.)To contact the reporter on this story: Maciej Martewicz in Warsaw at mmartewicz@bloomberg.netTo contact the editors responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net, Michael WinfreyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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    Row erupts over James Joyce’s house of ‘The Dead’

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  • GM Sells Shuttered Ohio Assembly Plant to Electric Vehicle Startup
    Bloomberg

    GM Sells Shuttered Ohio Assembly Plant to Electric Vehicle Startup

    (Bloomberg) -- Lordstown Motors Corp., the electric-truck startup formed specifically to save a shuttered Ohio car factory, has acquired the highly politicized plant from General Motors Co.The acquisition that the two companies announced Thursday ends an era that began when GM opened the complex in 1966. The factory’s fate was largely sealed when the United Auto Workers union was unable to convince GM to keep it in the fold as part of a new labor contact ratified late last month.Terms of the deal aren’t being disclosed. Workhorse Group Inc., which is affiliated with Lordstown Motors but doesn’t share any ownership, soared 27% to close at $3.13 in New York trading.The plant has been a political football since GM announced a year ago that it wouldn’t allocate future product to Lordstown. The decision was an immediate liability for U.S. President Donald Trump, who a year earlier went so far as to discourage rally-goers from selling their homes because of all the jobs he would bring back to the area. Democrats seized on the development as a symbol of unfulfilled promises made to voters in a key battleground state.Trump was so eager to endorse GM’s discussions to sell the Lordstown plant that he preempted the announcement of the talks in May by the largest U.S. automaker and Workhorse. But both companies are on shaky financial footing, with Workhorse totaling just $6,000 of revenue during its latest quarter.With the plant acquisition out of the way, Steve Burns, who used to lead Workhorse and is now chief executive officer of Lordstown Motors, is turning his attention to phase two: seeking cash to convert the Lordstown plant from making gasoline-burning Chevrolet Cruze sedans to plug-in pickups.“We are going to be fundraising for a while,” Burns said in a phone interview. “We have to stand up an auto company.”Debut ModelLordstown Motors is calling its debut model Endurance and targeting fleet buyers who make up a big chunk of the truck market.Workhorse Group is meanwhile among the bidders for a lucrative contract to make plug-in mail trucks for the U.S. Postal Service. The two companies share intellectual property related to electric-drive systems, Burns said.If Workhorse wins the postal contract, the Lordstown plant could eventually build those vehicles, but it isn’t guaranteed, he said. Lordstown Motors does have an agreement to transfer 6,000 existing pre-orders for Workhorse’s electric truck prototype called the W-15 to Lordstown Motors for production.If he raises the cash to get Endurance into production, Burns said he would work with the UAW and look to hire staff who didn’t accept the automaker’s offer to transfer to one of its other facilities. He wants experienced vehicle assemblers to build the trucks.“GM is committed to future investment and job growth in Ohio,” the company said in an emailed statement. “We believe LMC’s plan to launch the Endurance electric pickup has the potential to create a significant number of jobs and help the Lordstown area grow into a manufacturing hub for electrification.”Four MotorsBurns said the Endurance will be built with four motors -- one for each wheel -- to deliver all-wheel drive. It will have fewer moving parts than existing pickups, which could translate to lower repair costs for fleet operators. It also will have outlets that enable owners to run power tools off the battery.Lordstown Motors has the money to buy the plant and work on the vehicle, but Burns will need more to continue development, conduct crash and safety testing, get the truck approved for sale and retool the factory.The UAW opposed the Lordstown plant sale because of the risk involved. In addition to being wary of tying its fortunes to a cash-strapped startup, future demand for electric vehicles is uncertain. Several electric-vehicle upstarts have failed, including Fisker Automotive Inc., which was acquired by a Chinese auto-parts conglomerate after bankruptcy. Even Tesla Inc. struggles to make consistent profit.Burns said he’s hired a team of veterans from GM, Ford Motor Co. and Fisker’s successor company, Karma Automotive LLC. His chief production officer, Rick Schmidt, was a manufacturing director at Tesla for 3 1/2 years.“We’ve got a solid team and I’m confident in our fundraising efforts,” he said.(Updates share move in third paragraph.)\--With assistance from Kevin Miller.To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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  • Financial Times

    Audit watchdog captures the mood with Big Four break-up plan

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  • South Africa Makes Headway in $100 Billion Investment Drive
    Bloomberg

    South Africa Makes Headway in $100 Billion Investment Drive

    (Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterSouth African President Cyril Ramaphosa said his administration is on track to lure $100 billion in new investment within five years, with more than $16 billion already committed and many more projects in the pipeline.With the economy stagnating, an unemployment rate that’s stuck at about 30% and the country in danger of losing its sole investment-grade credit rating as the state’s finances deteriorate, Ramaphosa needs an injection of new capital to shore up growth. His campaign got off to a good start in October last year when an international investment conference secured pledges that helped push inflows to a five-year high.Of the 31 projects that were previously announced, eight have been completed and 17 are under construction or at the implementation stage, Ramaphosa said at a follow-up investment summit in Johannesburg. Companies committed to investing 363 billion rand ($24.5 billion) at the gathering on Wednesday, with another 8 billion rand subject to further approvals, spending that would create 412,000 direct jobs during the next five years, according to the president. Not all that money is new and some of it will come from state institutions.“We want growth in our economy and we are putting a number of measures in place to correct what business people have said are the impediments and constraints that are holding growth back,” Ramaphosa said in an interview with Bloomberg Television.“Investors had seen our country sliding down, bedeviled by corruption, by state capture,” he said. “We have corrected that and state capture is now being dealt with. We are now focusing on creating that investment climate and environment for them to invest.”Investment pledges announced at the conference include:Pulp and paper maker Sappi Ltd. said it will spend 14 billion rand at four of its plants over the next five years.Toyota Motor Corp. intends to invest 2.4 billion rand building a new hybrid model passenger car in South Africa from 2021.The New Development Bank will earmark a minimum of $1.6 billion for infrastructure development projects next year.Clothing retailers including Woolworths Holdings Ltd., Foschini Ltd. and Edcon Holdings Ltd. committed to spending 6.5 billion rand on new manufacturing capacity that will create 20,000 jobs.Seven vehicle manufacturers, including BMW AG, Ford Motor Co. and Volkswagen AG plan to establish a 6 billion-rand fund to encourage more black South Africans to participate in the industry over the next decade.The state-owned Industrial Development Corp. said it will invest 18 billion rand in various projects during the next year. Despite the uptick in investor interest, the National Treasury projects Africa’s most-industrialized economy will expand an average of just 1.5% over the next three years as electricity shortages constrain output. Lower-than-expected growth has curbed tax revenue, causing debt and deficit levels to soar, and Moody’s Investors Service has warned it may downgrade its assessment of the nation’s debt to junk unless urgent action is taken to turn the situation around.The government is committed to taking the necessary measures to stabilize its ratio of debt to gross domestic product, and restructure struggling state power utility Eskom Holdings SOC Ltd. It’s held productive talks with labor unions about what needs to be done, and a new chief executive officer will be appointed within the next few days, Ramaphosa said.“We don’t have to be dramatic to get things done. We’ve got to work together with our partners,” he said in the interview. “Of course people want dramatic events, they want bones to be broken, they want heads to be smashed. We are saying in this country we have done things a lot better by building consensus and working together.”Anglo American Plc Chief Executive Officer Mark Cutifani said his company invested 15 billion rand in South African mining projects in the past year and is committed to expanding output at its key platinum mines. While South Africa remains Anglo American’s best operating area in cost terms, more needs to be done to improve the business environment and certainty of power supply, he said in a panel discussion at the summit.Phuthi Mahanyele-Dabengwa, the CEO of Naspers Ltd.’s South African unit, said her company also sees scope to invest and expand more in the country, but continued to encounter regulatory hurdles.The Congress of South African Trade Unions, the country’s largest labor group and a ruling party ally, said while efforts to attract new investment were laudable, the government and business had been “very lethargic” in implementing decisions taken at previous summits.(Updates with total investment pledged in third paragraph.)\--With assistance from Paul Richardson, Amogelang Mbatha, Prinesha Naidoo and Loni Prinsloo.To contact the reporters on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net;Manus Cranny in Johannesburg at mcranny@bloomberg.netTo contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net, Rene Vollgraaff, Gordon BellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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    Graham Greene: our man in cinema

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  • Ford-UAW Deal to 'Create or Retain' Jobs & Make New Investments
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  • Alarms Still Blare on Triple-B Bonds, But No One Cares
    Bloomberg

    Alarms Still Blare on Triple-B Bonds, But No One Cares

    (Bloomberg Opinion) -- In the bond market, it can sometimes feel as if the more things change, the more they stay the same.Consider the following two articles about the massive amount of triple-B rated corporate debt:“A $1 Trillion Powder Keg Threatens the Corporate Bond Market” by Bloomberg News. The takeaway: “A lot of these companies might be rated junk already if not for leniency from credit raters. To avoid tipping over the edge now, they will have to deliver on lofty promises to cut costs and pay down borrowings quickly, before the easy money ends.”“Bond Ratings Firms Go Easy on Some Heavily Indebted Companies” by the Wall Street Journal. The takeaway: “Amid an epic corporate borrowing spree, ratings firms have given leeway to other big borrowers. … The buildup has fueled one of the most divisive debates on Wall Street: Will higher debt loads cause big losses when the economy turns?”The first one is from October 2018 and the second from a couple of weeks ago. That alone isn’t what’s most interesting — financial-market themes tend to repeat themselves, after all. Rather, it’s the fact that market appetite for those bonds on the brink of junk couldn’t be any more different between then and now, even though it’s clear that fears about ratings inflation and a huge wave of downgrades haven’t gone away.Around this time last year, Scott Minerd, global chief investment officer at Guggenheim Partners, made headlines by tweeting that “the slide and collapse in investment grade credit has begun,” starting with General Electric Co. No one seemed to want to own bonds rated just a step or two above junk — the Bloomberg Barclays triple-B corporate-bond index trailed the broad market in 2018 for just the second time since the financial crisis. I was willing to be contrarian after his comments, writing that investors shouldn’t fear a doomsday that everyone seems to think is coming.Still, the rapid change in sentiment through the first 10 months of 2019 has been nothing short of astounding. While there were signs of the tide starting to turn earlier this year, triple-B bonds have now returned 14.4% through Oct. 30, better than any other rating category. If the gains hold through the end of the year, it would be the triple-B market’s strongest performance since 2009, when it bounced back from its worst annual loss on record amid the financial crisis. Investors have either made peace with the risk of mass downgrades when the credit cycle turns, or they’ve just decided to ignore it and reach for yield when the Federal Reserve is cutting interest rates. Neither seems to be sustainable.It’s not as if the Wall Street Journal’s recent article is an outlier — CreditSights said in an Oct. 30 report that about $70 billion of triple-B corporate debt is at risk of falling to junk within the next 12 months, including household names like Kraft Heinz Co., Macy’s Inc. and Ford Motor Co. It’s not a question of whether so-called fallen angels become more prevalent, according to the analysts, it’s “when and how fast.”As for the “debt diet” that was supposed to happen this year, which would make triple-B companies less leveraged? In the aggregate, it’s been exactly the opposite. Fitch Ratings, in an Oct. 31 report, noted that triple-B corporate issuance is on pace to reach a record in 2019 after accounting for almost two-thirds of the $515 billion in bonds sold through the first nine months of the year. Triple-B securities make up half of the $5.8 trillion investment-grade corporate bond market, Bloomberg Barclays data show.But perhaps the most telltale sign of just how little investors seem to mind the “ratings cliff” between investment- and speculative-grade is how they’re gobbling up double-B bonds just as voraciously as triple-Bs. In fact, on Oct. 28, the spread between the two dropped to 43 basis points, a new low, according to Bloomberg Barclays data. At the start of 2019, it was as high as 172 basis points. Even though triple-B corporate bonds are having their best year in a decade, double-B debt isn’t far behind. This trend isn’t going to end overnight. Investors poured $2.3 billion into investment-grade bond funds in the week through Oct. 30, and an additional $940 million into high-yield funds, according to Lipper data. The sub-2% yield on 10-year Treasuries is probably still causing sticker shock to some investors, given that until a few months ago it hadn’t breached that level since President Donald Trump’s November 2016 election. For those in Japan and Europe, buying U.S. corporate bonds rather than Treasuries is sometimes the only way to avoid negative currency-hedged yields. Global and structural forces keep investors slamming the buy button in credit markets.Eventually, though, something has to give, as it always does. For now, corporate-debt buyers are content to just avoid triple-C rated securities. That includes Guggenheim investors led by Minerd, who said in a note this week that “now is not the right time” to add the riskiest junk debt, given the downside potential of more than 20%.The reasoning makes sense — triple-C rated companies are the most prone to default in an economic downturn. But in such a slump, triple-B companies would be vulnerable to downgrades. If investors were so sure last year that rating cuts would be too much for the high-yield market to bear, why wouldn’t they also stay away from triple-B bonds at this point?There’s no obvious answer. It’s just a reminder that total returns aren’t everything. Even though triple-B securities are the belle of the ball in credit markets this year, nothing much has truly changed.To contact the author of this story: Brian Chappatta at bchappatta1@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

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    Ford Is Said to Shift Plans Again for Underused Mustang Plant

    (Bloomberg) -- Ford Motor Co. is changing course a third time in as many years with its Mustang assembly plant in Michigan, nixing plans to make a new model there and tentatively shifting production to a factory in Ohio, according to people familiar with the matter.Ford no longer intends to build electric vehicles alongside Mustangs at its plant in Flat Rock, south of Detroit, according to the people, who asked not to be identified. The product now appears to be heading to the automaker’s plant in Avon Lake, Ohio, where it’s investing $900 million to build an unspecified new product in 2023.The United Auto Workers outlined the Ohio investment Friday in a document highlighting the tentative agreement the union reached with Ford earlier this week. Workers will start voting on the contract on Nov. 4.Roughly a year and a half after moving production of a future electric sport utility vehicle to Mexico from Flat Rock, Michigan, Ford said in March it planned to build other battery-powered models there and add a second shift of workers by 2023. The apparent switch to Ohio leaves the factory making only the Mustang and the Lincoln Continental sedan.Flat Rock stopped assembling Fusion sedans in 2016. U.S. sales were down 10% for the Mustang and 25% for the Continental this year through September. The UAW’s highlights of its agreement with Ford say the company has agreed to build an all-new Mustang in Flat Rock and invest $250 million in the facility.To keep the underutilized Flat Rock plant open, Ford committed to a “viability strategy” that includes “continuing to explore future opportunities” to find new products for the factory over the next four years, according to the union document. The contract also protects Flat Rock by including it in a moratorium on plant closings and sales during the life of the four-year deal.To contact the reporters on this story: Keith Naughton in Southfield, Michigan at knaughton3@bloomberg.net;Gabrielle Coppola in New York at gcoppola@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Ford’s $6 Billion Deal With United Auto Workers Goes Up for Vote
    Bloomberg

    Ford’s $6 Billion Deal With United Auto Workers Goes Up for Vote

    (Bloomberg) -- United Auto Workers leaders endorsed a tentative agreement with Ford Motor Co. and sent it to workers for a ratification vote after contract negotiations that lacked the drama surrounding the 40-day strike at General Motors Co.While the deal calls for the closing of an engine plant in Michigan, it also includes $6 billion of product investments in U.S. facilities and the creation or retention of more than 8,500 jobs. One of Ford’s factories in Ohio will be getting a $900 million infusion for a new product to build in 2023.The proposed pact now moves on to Ford’s 55,000 hourly U.S. workers, who will be briefed on the deal at plant meetings and vote on it over the next two weeks.“There was no drama at Ford, so I’m optimistic that the ratification vote will be successful,” said Arthur Wheaton, director of the Worker Institute at Cornell University. “Ford can concentrate on building trucks and making money and the workers can concentrate on keeping working with good pay and benefits. I don’t think Ford overpaid for this contract.”Highlights of the contract released by the union Friday detail where Ford intends to spend its money and allocate new models over the next four years. The company is also offering a quicker path to permanent employment for temporary workers than General Motors Co. did in its deal.For ratifying the agreement, Ford workers will receive a $9,000 signing bonus, less than the record $11,000 that GM workers received. But Ford workers didn’t lose wages to a walkout. Four years ago, Ford staff received $10,000 when they ratified the deal, including $1,500 pulled forward from profit-sharing.Otherwise, the economics of Ford’s package follows the basic pattern set in the GM contract, which includes lump-sum payments and annual pay increases that lift production wages to $32.32 an hour by 2023.Unlike the GM deal, Ford and the UAW are not planning to close their joint training center in Detroit. Union training centers run jointly with GM and Fiat Chrysler Automobiles have been at the center of an ongoing federal corruption probe that has resulted in several convictions and has implicated UAW President Gary Jones, who has not been charged with a crime. No charges have been filed against anyone in the union’s Ford Department.Increased CostsWhile the contract gives Ford labor peace, it also is expected to increase its labor costs, which were already $11 an hour above what international automakers such as Toyota Motor Corp. and Honda Motor Co. pay workers at their U.S. plants.GM’s labor costs are projected to rise $100 million a year just due to increases in worker pay, according to RBC Capital Markets analyst Joe Spak. That doesn’t even account for the cost of continuing the union’s generous health care coverage -- a tab Ford expects to rise above $1 billion next year.But avoiding labor disruption will help Ford Chief Executive Officer Jim Hackett keep his $11 billion global restructuring on track, which analysts and credit rating agencies have said is moving too slowly. Last month, Ford cut its profit projection for the year by $500 million, citing unexpected “headwinds.”“Ford gets more flexibility in this contract, which will allow them to expand into electric vehicles,” Wheaton said. “Having $2,000 less in the ratification bonus helps Ford save cash, but workers also did have the expense of 40 days on the picket line.”To contact the reporters on this story: Keith Naughton in Southfield, Michigan at knaughton3@bloomberg.net;Gabrielle Coppola in New York at gcoppola@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • A Reassuring Q3 Earnings Picture
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  • Will Fiat Trump GM and Ford by Buying Tesla Tech?
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