Ford Motor Co said last week that it planned to lay off about 200 workers at its manufacturing facility in Oakville, Ontario, Canada in September. The auto maker also said that more layoffs were possible in January 2019.
The latest layoffs were attributed to sluggish sales of the Lincoln MKT and Ford Flex, as both vehicle models are manufactured at Fords factory in Oakville.
Ford shares closed lower for a fourth consecutive trading session in New York on Monday. The stock edged down 0.30% ($0.03) to $10.02, after touching an intraday low at $10.00, or a price level not seen since June 27th ($10.00).
Shares of Ford Motor Company have risen 30.98% so far in 2019 compared with a 19.07% 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.
“We have been arguing as a local for the past several weeks trying to persuade the company from somehow avoiding this scenario, but to no avail,” Dave Thomas, President of Unifor Local 707 in Oakville, said in a note to members, cited by Reuters.
According to Thomas, production at the facility will slow as of August 1st, with one shift cut and hours reduced.
“We want the employees in Oakville to know that our government stands with them and their families,” Robert Gibson, the spokesman for Ontario’s minister of economic development, said in response to US auto makers decision. “We will work with our partners to continue to fight for good jobs in Oakville and support the affected families.”
Nearly 4 600 people are currently employed with Ford at its Oakville factory.
Analyst stock price forecast and recommendation
According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $11.00, with a high estimate of $13.50 and a low estimate of $8.40. The median estimate represents a 9.78% upside compared to the closing price of $10.02 on July 22nd.
The same media also reported that at least 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.
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