Ford Investor Day Set For Tomorrow: Here’s What To Expect

Ford investor day set for tomorrow: here’s what to expect

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Ford Motor Company (NYSE: F) is set to hold its first investor day under CEO Jim Farley tomorrow. The automaker’s stock price has roughly doubled since he took over the reins on Oct. 1, including a more than 12% increase just last week after the debut of the F-150 Lightning pickup truck.

Ford to hold investor day on Wednesday

Farley has said he will provide more details on his plans for Ford, calling it his team's "coming-out party." He noted that the automaker has had some good quarters but added that the big test would be what their big plan is for the company and how it will "add value."

According to CNBC, Wall Street criticized Farley's predecessor, Jim Hackett, for not providing details on his turnaround plan and having an unclear vision to fix the automaker's operations. Farley will have to provide many details to please investors.

RBC analyst Joseph Spak said in a recent note that since Farley took the helm, Ford has promised to be more transparent and release measurable key performance indicators so that investors can track its execution and progress. At the investor day, he expects the automaker to release those details and financial targets.

What will the financial targets look like?

Investors will also want to see a clear path for Ford to reach an adjusted profit margin of 8% and more details about the automaker's plans for autonomous and electric vehicles. The plan is for a 10% margin in North America and 6% in Europe. Both Hackett and his predecessor, Mark Fields, promised an 8% adjusted profit margin for 2020, but that never happened.

Before the pandemic struck, Ford's adjusted profit margin stood at 4.1% in 2019 and then 2.2% in 2020. Then due to the ongoing chip shortage, supply and demand have been unbalanced, raising the automaker's margin to 13.3% in the first quarter. Meanwhile, General Motors had an adjusted profit margin of 6.1% in 2019, 7.9% last year and 13.6% in the first quarter.

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