Ford Motor Company (F) intends to shut down its engine facility located in Bridgend, south Wales, by September 2020, which would place 1 700 job positions at risk, a British trade union said in a statement on Thursday.
Ford’s contract to supply Jaguar Land Rover also ends in September 2020, Reuters reported.
Ford shares closed lower for a second consecutive trading session in New York on Thursday. The stock edged down 0.31% ($0.03) to $9.75, after touching an intraday low at $9.66 and an intraday high at $9.82.
Shares of Ford Motor Company have risen 27.45% so far in 2019 compared with a 13.43% gain for the benchmark index, S&P 500 (SPX).
In 2018, Ford Motor Co’s stock went down 38.75%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
The US auto maker currently has two engine-producing facilities in Britain. It exports manufactured engines from those plants to Turkey, Germany, the United States and elsewhere, so that they can be fitted in vehicles. In the case of a no-deal Brexit, Ford could face delays as well as additional costs.
“Ford’s decision to shut its Bridgend engine plant in 2020 is a grotesque act of economic betrayal,” Len McCluskey, head of Unite, UK’s largest trade union, was quoted as saying by Reuters.
“We will resist this closure with all our might, and call upon the governments at the Welsh Assembly and Westminster to join us to save this plant, and to prevent yet another grave injury to UK manufacturing,” McCluskey added.
In 2018, Ford’s facility in Bridgend produced nearly 20% of Britain’s 2.7 million automotive engines.
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $10.50, with a high estimate of $14.00 and a low estimate of $8.40. The median estimate represents a 7.69% upside compared to the closing price of $9.75 on June 6th.
The same media also reported that 11 out of 19 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:
Central Pivot Point – $9.58
R1 – $9.84
R2 – $10.16
R3 – $10.42
R4 – $10.68
S1 – $9.26
S2 – $9.00
S3 – $8.68
S4 – $8.36