Ford (F) Stock Rises 2% after Reports of Q2 Sales Drop

UTC by Muhaimin Olowoporoku · 2 min read
Ford (F) Stock Rises 2% after Reports of Q2 Sales Drop
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Despite the drop in sales in Q2, Ford (F) stock is trading in the green with a 2% surge. Meanwhile, the company rolled out the marketing strategy for its new family of Bronco SUVs.

Popular American automobile carmaker Ford Motor Company (NYSE: F) since the coronavirus pandemic has been facing hard times, its stock, however, looks quite promising. Falling demand owing to weak economy alongside supply constraints fueled by coronavirus plants shutdown squeezed Ford alongside other American automobile makers.

Ford felt the effect mostly in Q2 when the pandemic heightened in many parts of the U.S. in April. General Motors Company (NYSE: GM) and Ford amidst all the setbacks recently reported that domestic vehicle deliveries dropped by one-third compared to Q1.

Owing to many of Ford’s business experiences in this quarter, analysts believe that the automobile manufacturer could easily revisit its March lows.

Ford (F) Stock

As at the time of writing this report, Ford (F) stock was trading at $6.18 with a 2.15 percent surge in its value. The stock was valued at $6.05 when the market closed at the previous trading session and opened trading today at $6.14. Analysts claim that now is not a good time to keep Ford stock as they believe there is still more downside for the struggling American automaker.

Sighting the fact that Ford was caught off guard with the recession & pandemic, razor-thin margins and huge debt, it is believed the firm’s stock would crumble in the meek of time.

Ford Returns to Market with Bronco SUV

The automobile makers on Monday rolled out the product and marketing strategy for its new family of Bronco SUVs. The Bronco SUVs that are to launch later this month would have two- and four-door models, as well as a smaller Bronco Sport.

The new Bronco lineup will offer off-roading technology aimed at people who want a comfortable ride on the highway, and who go off-roading on sand, gravel or dirt, not clambering over boulders, Ford Chief Operating Officer Jim Farley said in an interview.

Bronco’s real mission is to boost profits as Ford strives to repay debt taken on to weather the coronavirus slow down. The firm believes retooling its Wayne, Michigan, assembly plant to build Ranger mid-sized pickup trucks and the Bronco instead of hybrid and compact cars would improve operating earnings by more than $1 billion.

Reports have it that the new Bronco would look like the first generation of Ford Broncos built from 1966 to 1977.

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Muhaimin Olowoporoku

Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.

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