Jim Farley Q3 Earnings Call

[mtap]

Anyone read the transcripts? Not much love for the Bronco? I’m seeing a lot of focus on EVs...F150, Mach E, and Bronco sport mentioned. Bronco might not be a priority? I get there’s no data comparison for release of new Bronco, or EV tax credit for it, BUT if they would just look at how many sites, groups, reservations, memberships existing for a vehicle that people have been waiting for....Bronco would probably take up a chunk of the market share? The EV market will always be there, i don’t feel that should take priority....Any thoughts on this?

From a share holder and future Bronco owner

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[Beau J]

Haven't read them but not surprised it isn't their top priority, its a small slice of their global market. They can't come to a stop to focus on the Bronco and take away from what keeps the company running. It will be interesting to see Bronco sales a few years down the road once all of the people in this echo chamber already have one.

All that aside, they could have done a better job for sure giving the people what they want! Really would love the saddle leather in the FE or something...

 

[North7]

Anyone read the transcripts? Not much love for the Bronco? I’m seeing a lot of focus on EVs...F150, Mach E, and Bronco sport mentioned. Bronco might not be a priority? I get there’s no data comparison for release of new Bronco, or EV tax credit for it, BUT if they would just look at how many sites, groups, reservations, memberships existing for a vehicle that people have been waiting for....Bronco would probably take up a chunk of the market share? The EV market will always be there, i don’t feel that should take priority....Any thoughts on this?

From a share holder and future Bronco owner

I did not listen to the call or read a transcript, you don't need to in regards to your question. Wall St. Only cares about this quarter's performance.

The future is accounted for by the Wall St. Analysts, not what any CEO says.

 

[mtap]

The issue i see is that if they keep pushing the Bronco aside (not a priority)...that’s lost sales in the future? People will drop out, etc...I’m probably one of the few that doesn’t “need” another vehicle. For me it’s just something I’ve been wanting. For others, it might be their first vehicle, it might be their daily driver, it might be a replacement of an existing vehicle, etc....they’re not going to wait it out.

 

[Hey19]

...and complaining about the Bronco by the 2nd post...

Anyways, it will be interesting to me to see what influence the Bronco line has on Ford's numbers. I gotta think it is a pretty small market for a global company.

 

[mtap]

...and complaining about the Bronco by the 2nd post...

Anyways, it will be interesting to me to see what influence the Bronco line has on Ford's numbers. I gotta think it is a pretty small market for a global company.

Small market i agree, but sure win though...i know a while back they said they’re looking at 30% conversion on reservations...but the reservations just grew to 190k, so...? ?‍

 

[Hey19]

Small market i agree, but sure win though...i know a while back they said they’re looking at 30% conversion on reservations...but the reservations just grew to 190k, so...? ?‍

Granted I don't know as much about this stuff as I should, but doesn't having a wildly popular release like this help with investor confidence, which in turn can help stock prices?

 

[frinesi2]

I wouldn't read too much in to it. They aren't gonna be making money off the Bronco until, like, Q1 2022.

 

[BradtheWelder]

There is no profits yet. They have only invested money with no return yet.

The Bronco will probably not sell as much as the F150 ever. Just in 2019 they sold almost 1,000,000 according to wikipedia.

 

[Nobody]

I did not listen to the call or read a transcript, you don't need to in regards to your question. Wall St. Only cares about this quarter's performance.

The future is accounted for by the Wall St. Analysts, not what any CEO says.

This.

It is completely normal and expected to avoid all forward looking discussion/speculation on earnings calls. That's not the purpose.

 

[FJ 432]

IMHO your reading into this too much. These calls are to discuss a specific time period (3Q).
2021 will be filled with Bronco talk.

Edit: Sorry North7, I like your explanation better.

 

[Edelfin]

I was on the call. It’s not that Bronco isn’t a priority, it’s that the company goal isn’t just the one model. EV and globalization is why Ford has fallen behind, barely in the top ten automakers. They need to focus on those aspects or they will never make an impact anywhere outside of the US.

The Bronco is important because it can enter a market it never has (Jeep). That being said, Ford does not have to sell hundreds of thousands of them to be considered a successful launch. Anything over break even EBIT, proves the investment was worth it because they never had a vehicle in this segment.

I’d be more concerned financially over Q4 report. All of the relaunch costs are being counted then, and during COVID Ford Credit issued a lot of loans but don’t expect the repayments to cover costs. It’s that unique payment system where customers pay way less the first three years.

 

[mtap]

Granted I don't know as much about this stuff as I should, but doesn't having a wildly popular release like this help with investor confidence, which in turn can help stock prices?

It does help with investor confidence if there is historical data to back it up. They always compare to last year or years...but since it technically a “new” product, investors can be skeptical. Just look at all the threads here on people waiting for the “bugs” to be fixed...kinda similar.

 

[mtap]

There is no profits yet. They have only invested money with no return yet.

The Bronco will probably not sell as much as the F150 ever. Just in 2019 they sold almost 1,000,000 according to wikipedia.

Yes absolutely they did not sell more in 2019 because we did not have a bronco then. And yes it will not sell more than F150 in the future because F150 is a staple...work truck, family vehicle, etc. not saying stop production on all the other lines, just saying that it’s pretty much a sure win with the Bronco (not being Biased) because there’s already “people in line” for it so to speak. No need to mass produce to lower cost, just manufacture what’s been reserved?

 

[mtap]

Here’s how i see it (definitely not a CEO of a global company, but I do run a business)...let’s say you own a restaurant. You can upgrade your existing best sellers, add garnish, fancier presentations, etc to compete with the guy down the road. You have an opportunity to create a brand new dish your customers have been talking and waiting in line for....do you put priority on the upgraded dish to compete or do you produce new dish to gain capital to make better upgrade on existing dish? Plus side of new dish will also bring new customers...

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