Why Ford Stock Surged 19% in December
Ford Motor Company (NYSE: F) stock would have ended 2023 in the red if not for a rebound in the last month of the year. Ford stock surged 18.8% in December, according to data provided by S&P Global Market Intelligence, as investors bet on better days ahead for the automaker amid an anticipated fall in interest rates.
Ford sold roughly 800 fewer vehicles in November year over year, with sales of its internal combustion vehicles, including trucks, slipping as the company worked through production hiccups amid a long-standing workers' strike. Labor contracts with the United Auto Workers (UAW) have been a recurring hurdle for automakers, but 2023 was particularly challenging. Ford suffered its first UAW work stoppage in almost 50 years, and that significantly crippled its production and sales and hurt profits. Ford also withdrew its guidance for 2023 in October last year amid the strikes.
Ford finally reached a new UAW agreement and announced its updated outlook for the year on Nov. 30. Although it will cost the company heavily, investors heaved a sigh of relief as they got visibility into Ford's 2023 operational performance and plans for 2024.
Source Fool.com
