Ford Motor Company F will increase production of its large Super Duty trucks by expanding operations to a Canadian plant that was initially designated for conversion into an all-electric vehicle hub. This new initiative includes a $3 billion investment, with $2.3 billion allocated to the Oakville Assembly Complex in Ontario, Canada, and the rest to enhance production at facilities in the United States and Canada.
Currently, Ford manufactures Super Duty trucks, primarily used by commercial and business customers, at its Ohio and Kentucky plants. The Canadian plant is expected to come online in 2026, adding an annual capacity of about 100,000 units.
Per Jim Farley, CEO of Ford, the Kentucky Truck Plant and Ohio Assembly Plant are not sufficient to meet the growing demand. The new investment aims to boost Ford's Pro commercial business.
Previously, F had announced a $1.3 billion investment in the Canadian plant for EV production, including a new three-row SUV, which is now delayed until 2027. Ford plans to electrify the next generation of its Super Duty trucks but has not provided further details.
This move aligns with Farley's Ford+ strategy for profitable growth and optimizing F's manufacturing footprint. Despite setbacks in its EV restructuring plan, the automaker intends to produce the three-row EV at an unspecified plant starting in 2027.
When the Ford+ plan was introduced in May 2021, there was high optimism about EV adoption and profitability, which has not materialized as quickly as expected. The automaker initially aimed for nearly half of its global sales to be electric by 2030, supported by more than $30 billion in EV investments through 2025. The company's EV plans have shifted multiple times, and its Model e EV unit incurred a $4.7 billion loss in 2023.
While Ford's EV unit struggles financially, its Ford Pro commercial business, including Super Duty trucks, earned $7.2 billion before interest and taxes in 2023. The Ford+ plan also targeted an 8% EBIT profit margin for the EV unit by the end of 2026. The company withdrew the target earlier this year after a negative 40% profit margin in 2022.
Zacks Rank & Other Key Picks
F currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Suzuki Motor Corporation SZKMY, Honda Motor Co., Ltd. HMC and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 have improved 10 cents in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 2 cents in the past 60 days. The same for 2025 has moved up 5 cents in the past 30 days.
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