Yahoo Finance Ford (F) to Invest C$1.8B in Oakville Manufacturing Site
Ford Motor Company F will invest C$1.8 billion in its Oakville, Ontario, manufacturing site to transform it into a high-volume electric vehicle (EV) manufacturing hub. The core part of the plan is to ramp up the production of electric vehicles and make them widely available. The site will be renamed Oakville Electric Vehicle Complex, and its retooling and transformation will begin in the second quarter of 2024. The on-site production of next-generation EVs will start in 2025.
Ford is the first full-line automaker that plans to manufacture EVs in Canada for the North America market. Jim Farley, CEO and president of Ford, said that the new site will be modern, super-efficient and vertically integrated for battery and vehicle assembly.
With this investment, Ford will transform its existing site into a state-of-the-art facility that will leverage Ford of Canada’s experienced and skilled workforce. The existing 487-acre Oakville site has one paint building, three body shops and one assembly building. After the transformation, it will have a new 407,000-square-foot on-site battery plant that will utilize components from the BlueOval SK Battery Park in Kentucky. The workers in Oakville will assemble those components to build battery packs that will be installed in EVs.
Apart from the Oakville Electric Vehicle Complex, the auto giant is building BlueOval City, an EV manufacturing ecosystem in West Tennessee and a lithium iron phosphate battery plant in Marshall, MI. Ford is modernizing its vehicle assembly campus in Cologne, Germany, to produce Ford Explorer for European customers and building one of the largest commercial EV battery cell production facilities in Europe. The company is scaling the production of F-150 Lightning at the Rouge Electric Vehicle Centre in Dearborn and the Mustang Mach-E at its Cuautitlan facility in Mexico.
The above-mentioned investments are focused on Ford’s strategy of producing 2 million EVs per year by late 2026.
Zacks Rank & Stocks to Consider
F currently carries a Zacks Rank #4 (Sell).
A few better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, BYD Company Limited BYDDY and Ferrari N.V. RACE, all of which sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimate for GELYY’s 2023 sales and earnings implies year-over-year growth of 57.5% and 7.4%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries, and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of 175%.
Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimate for RACE’s 2023 sales and earnings implies year-over-year growth of 14% and 19.8%, respectively.
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Ford Motor Company (F) : Free Stock Analysis Report
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
