Ford Motor Company is facing a challenging road ahead, according to a recent analysis from Jefferies. Analyst Philippe Houchois and his team at Jefferies lowered their rating for Ford Stock from "Hold" to "Underperform" and reduced the price target significantly from $12 to $9. On Monday, Ford Stock dropped 3.9%, closing at $9.98. This marks a year-to-date decline of 15% as of last Friday. The analysts noted that Ford might see potential benefits if President-elect Donald Trump relaxes vehicle emissions regulations and modifies electric vehicle policies. However, they cautioned that the timing and scale of any such impact remain uncertain. In the near term, Ford is grappling with rising U.S. inventory levels, which outpace its competitors despite strong sales performance. While consistent production has helped the company maintain lower guidance for 2024, this trend could signal a more difficult beginning for 2025, according to the report. Jefferies also highlig...
The automotive industry is no stranger to bold moves, mergers, and alliances aimed at staying competitive. But not everyone sees these strategies as the key to success. Former Nissan chairman Carlos Ghosn has recently shared his strong opinions on the rumored merger between Nissan and Honda, calling it a potential recipe for “cost-cutting carnage.” While the move could help the companies compete in the global electric vehicle (EV) market, especially against China’s rising dominance often referred to as the " China one " phenomenon, Ghosn warns that the merger could cause more harm than good. The Push for a Nissan-Honda Merger As competition heats up, particularly in the EV space, both Nissan and Honda are under pressure to adapt. Chinese automakers, often grouped under the term “ China one ,” are shaking up global markets. Companies like BYD, NIO, and Geely have become major players by offering innovative, affordable EVs that appeal to eco-conscious buyers worldwide. Faced wi...