MF: How $F Plans to Boost Margins

Investment Analysis Clubs Destiny Solutions Corporation
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Here’s How Ford Plans to Boost Its Margins
By Rekha Khandelwal - Jun 14, 2022 at 9:17AM

https://www.fool.com/investing/2022/06/14/heres-how-ford-pla…

Ford believes that margins for electric vehicles (EVs) should be higher than those for ICEs. That’s a key reason why Ford is pushing to increase its EV sales. The company expects that EVs will account for half of Ford’s global sales by 2030.

Ford targets adjusted EBIT (earnings before interest and tax) margin of 10% by 2026. In the last five quarters, the company’s EBIT margins averaged about 7%.

Ford is primarily looking at three areas to boost its margins.

1. Saving on dealership costs

2. Saving on marketing costs

3. Saving on battery costs

Open the link to see Rekha’s explanations for all three points above.

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"Ford is primarily looking at three areas to boost its margins.

  1. Saving on dealership costs"

Let’s squeeze our people!

“2. Saving on marketing costs”

Let’s squeeze our media teams!

“3. Saving on battery costs”

Let’s pretend we have some control over our batteries!

Howie52
In other words - lets raise the prices on all our autos and see if anyone can afford to buy
them.