Business
Ford CEO Jim Farley eyes further improvements after five years of ‘surprises,’ including investor returns
Jim Farley, president and chief executive officer of Ford Motor Co., at Ford Pro Accelerate in Detroit, Michigan, US, on Tuesday, Sept. 30, 2025.
Jeff Kowalsky | Bloomberg | Getty Images
DETROIT — “A lot of surprises.” That’s how Ford Motor CEO Jim Farley described his past five years leading the Detroit automaker, which he believes now has a solid foundation.
For Farley, who marks his fifth anniversary as CEO on Wednesday, there have been industry-wide problems to deal with, as well as Ford-specific issues that the company is still in the process of navigating.
The 63-year-old CEO has been working to make Ford more capital efficient, improve quality to reduce recall and warranty costs, and grow profit margins. That’s on top of industry-wide concerns about changing regulations, including tariffs, and shifting dynamics in electric and autonomous vehicle strategies.
“I think there were certainly a lot of surprises,” Farley told CNBC on the sidelines of a Ford event Wednesday in Detroit. “I would say what I’m most proud of is the team I built, together with [Ford Chair Bill Ford], as well as the foundation.”
Farley said it’s still going to “take more work,” but the company has a good base after years of restructuring to perform better than it has under his tenure thus far. He’s optimistic about Ford continuing to improve the company’s overall performance and grow shareholder value.
“We need to get more capital efficient. We need to have higher margins than 4% or 5%, and we we need to be more resilient to economic cycle,” Farley said, adding some recent changes in regulations from the Trump administration may be more beneficial than Wall Street expects for Ford.
Investor ‘surprise’
Despite the company’s ongoing challenges, Ford stock has been a surprising return for investors that have stuck with the automaker, which remains a “hold” based on average ratings of Wall Street analysts compiled by FactSet.
While Ford’s stock price hasn’t increased as much as General Motors, Tesla or the overall S&P 500 index over the past five years, its total shareholder return — including a historically strong dividend — has made it a better investment than many of its peers.
Auto stocks since October 2020
Ford’s total shareholder return over the past five years is roughly 134%, according to FactSet. That tops its largest global competitors other than Tesla – at 211% – over that time period.
GM, Ford’s closest rival, has a total return of about 113% over that time period — in line with the S&P 500, according to Factset. U.S.-listed shares of Toyota Motor, meanwhile, had a cumulative total return of 61%, while Honda Motor shares had a total return of 51%.
On a per share basis, Ford stock closed Tuesday at $11.96 per share, up roughly 80% since Farley became CEO on Oct. 1, 2020. That compares with Tesla, up 211% to nearly $445; GM increasing 106% to roughly $61; and the overall S&P 500 index with a 99% increase since then.
Farley has managed to woo Wall Street more than his two most recent predecessors — both of whom departed the company after double-digit losses in Ford’s stock price.
Farley became the head of Ford amid more than decade lows in the company’s stock price following the onset of the coronavirus pandemic in the U.S. He took over from CEO Jim Hackett, who was recruited by Chair Bill Ford to replace longtime executive Mark Fields.
Ford’s stock under Hackett, ex-CEO of furniture maker Steelcase, declined roughly 40% during his tenure from May 2017 through September 2020. It was slightly better under Fields’ roughly three-year tenure, when the stock declined around 35%.
The stock’s best performance in the past 25 years occurred under CEO Alan Mulally, from September 2006 through July 2014, when shares jumped roughly 178%.
Ford’s stock saw its lowest point under Farley when he took over the company in 2020. Its high during the past five years was $25.87 per share in January 2022, which occurred during the automaker’s push into electric vehicles such as the F-150 Lightning and notable upgrades.
At that time, Ford’s market value topped $100 billion for the first time ever. It’s now less than half that around $48 billion, with the stock off 54% from that high. That compares to GM’s market cap of about $58 billion.
Road ahead
To achieve further upside, the company will need to address several factors, including quality and recall issues as well as costs — areas Farley has tried to combat for years.
Ford has spent billions of dollars on warranty and recall problems in recent years, setting industry-wide records for the number of recalls in 2025.
“To justify further upside for Ford it would require a multiple re-rating, which we believe may be a challenge,” Barclays analyst Dan Levy said in a Sept. 12 investor note, citing overhangs of structural costs, quality and recalls. “The ongoing cycle of recalls remains a challenge, and it’s unclear when this cycle might end.”
While there have been improvements, the company remains at a disadvantage to its peers when it comes to costs.
In 2023, Ford said it faced an overall cost disadvantage of between $7 billion and $8 billion, including $3 billion to $4 billion in material costs and $3 billion in structural costs, in addition to ongoing recall costs that the company considers “special items.”
Since then, Ford has been working to trim that figure and improve its product and quality, including closing roughly $1.5 billion in its material cost gap last year. The company, executives said in July, is on track for another $1 billion reduction in costs this year, excluding tariff impacts — increasing that figure to $2.5 billion.
“GM’s still better than us on cost, but we made a lot of progress this year,” Farley said Tuesday. “First time, without restructuring, we got a billion year-over-year cost down, which is a big deal.”
Ford Motor President and CEO Jim Farley talks about the Mustang GTD during the press day of the North American International Auto Show in Detroit, Michigan, U.S. September 13, 2023.
Rebecca Cook | Reuters
Amid Ford’s pullback in costs, the company under Farley has altered its plans for all-electric vehicles, including taking a nearly $2 billion hit last year for delaying and canceling EVs.
Farley on Tuesday said he “wouldn’t be surprised” if sales of EVs fell from a market share of around 10% to 12% in September — which is expected to be a record — to 5% this month after a federal incentive program for electric vehicles ended.
Along with its self-inflicted cost issues, Ford has been managing tariffs, electrification and a volatile regulatory landscape. There have been a slew of federal changes but some, such as the elimination of national emissions penalties, are assisting the automaker in offsetting expected tariff impacts of $3 billion this year.
“We’ve got to work through a couple of these policy issues that could be a big tailwind for the company,” Farley said Tuesday, adding its commercial Pro business remains another highlight. “I don’t think the market has understood the benefit of the EPA rule change. It’s going to be big for our industry, for companies like Ford.”
Savers across the UK are being offered a record number of accounts and products and with interest rates still well above 4 per cent on the most competitive options, should make sure their cash is working hard.
Data from Moneyfacts shows the number of savings accounts has risen to 2,486, including ISAs, the highest number on record. Cash ISAs alone, meanwhile, also saw the largest monthly rise since May 2024 and, with 712 offers in total, is the most since Moneyfacts started recording.
Both numbers come as the final tax year gets underway in which all savers are able to deposit a full £20,000 annual allowance into a cash ISA.
Starting from April 2027, under-65s will only be able to save a maximum of £12,000 into the tax-free savings wrappers, with the additional £8,000 reserved for investment purposes, such as a stocks and shares ISA.
That’s as part of a wider push from the government to encourage more people to invest, to build future wealth.
High interest rates are important not only to earn a good return on cash, but to ensure money doesn’t lose its value, or buying power, when measured against rising prices; in other words, inflation, which currently sits at around 3 per cent and is set to rise.
That means consumers should whenever possible look to be beating that rate as a minimum when it comes to their saving accounts, and plenty of places are still offering 4.5 per cent and even higher right now.
“This year the competition around ISA season was particularly strong, fuelled by the fact that for savers under 65 it’s the final year for them to utilise their full £20,000 allowance. Providers have been enticing new deposits with attractive deals,” said Caitlyn Eastell, personal finance analyst at Moneyfacts.
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
ADVERTISEMENT
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
ADVERTISEMENT
“Savers should be taking advantage of this all-time high, and it may be especially timely as the new tax-year is the perfect window to review their current deal and switch to ensure they can maximise their returns before thresholds tighten.
“The number of savings deals paying above the Bank of England base rate has surged to its highest level since December 2021. While this could largely be driven by base rate remaining unchanged several months, providers have also been proactively adjusting rates in response to shifting interest rate expectations.
“Fixed rates reflect this change, with the average one-year ISA rising to over 4 per cent, reaching its highest point since May 2025, while its non-ISA counterpart saw its biggest increase since September 2023. Savers may enjoy more competitive returns in this environment; however, it can be a tricky balancing act because sharp spikes to household bills and inflation could quickly catch up, meaning savers may be left out of pocket.”
Meanwhile, thisbank has pointed to growing evidence showing that many households have multiple money accounts, but no clear overview of their true financial position.
Reviewing accounts – including joint and old current accounts – can turn up unexpected cash reserves, help families realise which subscriptions they are paying for but are no longer using and aid better budgeting, the bank says, giving a better understanding of where income and expenses match up.
“For many households, financial stress is exacerbated by complexity. By taking a simple, step-by-step approach, people can implement structure and clarity in their everyday financial management,” said Chris Waring, CEO of thisbank, while recommending each savings account has a particular role, such as everyday spending, long-term emergency buffer or fixed-term saver accounts with strong rates for predictable returns.
Underlining the need to be aware of where consumers are choosing to put their cash, analysis by savings app Spring shows that a huge majority of premium, paid-for accounts come with poorer returns, tiered interest rates or withdrawal restrictions.
Under a quarter (23 per cent) of easy access savings accounts on premium current accounts on the market are free of additional restrictions, their research showed, which included lower returns after £4,000 in an account with one, a paltry 1.35 per cent on balances under £100,000 elsewhere and nearly a third (30 per cent) having withdrawal limits.
The FTSE 100 started the week on the back foot on Monday as hopes for a peace deal in the Middle East once more hung in the balance.
“Just when you think it is safe to go back in the water, the alarm is sounded again,” said Tom Stevenson, investment director, Fidelity International.
The FTSE 100 closed down 58.55 points, 0.6%, at 10,609.08. The FTSE 250 ended 265.71 points lower, 1.2%, at 22,940.21, and the AIM All-Share fell 1.77 points, 0.2%, to 808.34.
Friday’s optimism gave way to renewed fears that hostilities could resume in the Middle East war after Iran closed the Strait of Hormuz following its brief reopening.
“The market mood is very different at the start of the week compared to Friday,” said Kathleen Brooks, research director at XTB.
The price of crude oil had plunged Friday after Iran said it would again allow ships to pass through the key shipping route, the Strait of Hormuz.
But prices rose once more on Monday as Iran closed the waterway and said the US blockade and seizure of an Iranian cargo ship breached the two-week ceasefire.
Brent oil traded higher at 94.45 dollars a barrel on Monday afternoon, compared with 89.15 dollars at the time of the equities close in London on Friday.
Ms Brooks said the jump in oil prices and pull-back in stocks is a reminder that the current ceasefire that expires on Wednesday is “fragile”.
On Monday, Iran insisted it has no plan to attend a new round of negotiations with the US, although US President Donald Trump said he was sending negotiators to Pakistan for talks.
In European equities on Monday, the CAC 40 in Paris ended down 1.1%, and the DAX 40 in Frankfurt fell 1.2%.
In New York, the Dow Jones Industrial Average was down 0.1%, the S&P 500 was 0.3% lower, and the Nasdaq Composite declined 0.5%.
Strategists at HSBC and UBS remained bullish on equity markets despite the latest market unease.
“Our view remains that we have passed peak geopolitical risk. Both sides have a strong incentive to find a deal. That said, we have been urging investors to expect a bumpy road to a lasting peace,” said Mark Haefele at UBS.
While, Max Kettner at HSBC said: “Despite the recent rally across the risk asset spectrum our sentiment and positioning framework still sends a buy signal. In short: be quick.”
The yield on the US 10-year Treasury stretched to 4.26% on Monday compared with 4.24% on Friday. The yield on the US 30-year Treasury widened to 4.89% from 4.88%.
The pound eased to 1.3535 dollars on Monday afternoon from 1.3556 dollars on Friday. Against the euro, sterling firmed to 1.1486 euros from 1.1481 euros.
The euro traded lower against the greenback, falling to 1.1786 dollars on Monday from 1.1805 dollars on Friday. Against the yen, the dollar was trading higher at 158.58 yen, up from 158.08 yen.
On London’s FTSE 100, oil majors BP and Shell benefited from the rising oil price, up 2.9% and 2.5%, recouping some of Friday’s heavy falls, while British Airways owner IAG fell 2.2%.
On the FTSE 250, Renishaw led the risers, up 6.2%, as it raised full-year guidance reflecting buoyant demand and a further “substantial expansion of our order book”.
The Gloucestershire-based supplier of manufacturing technologies, analytical instruments and medical devices now expects revenue in the financial year to June of £775 million to £805 million, raised from guidance of £740 million to £780 million provided in February.
It projects adjusted pre-tax profit of £145 million to £165 million, lifted from £132 million to £157 million.
Plus500 gained 3.8% as it said customer income reached a five-year record high in the first quarter of 2026 as it forecast full-year revenue and earnings ahead of market expectations.
Reflecting a strong first quarter of 2026, the Israel-based trading platform operator said it expects 2026 revenue and Ebitda to be ahead of current market expectations which it put at 779.3 million dollars and 360.4 million dollars respectively.
Chief executive David Zruia said: “The group delivered an excellent performance in the quarter, with strong growth across key financial and operational metrics.”
Elsewhere, bid interest drove shares of Evoke and Advanced Medical Solutions higher.
William Hill owner Evoke jumped 4.1% after it said it is in discussions with US casino operator Bally’s Intralot regarding a possible all-share takeover offer worth more than £200 million.
Back in December, Evoke kicked off a strategic review, which it said could include a sale of the company, after the UK Government budget which the gambling firm warned would lift yearly duty costs by up to £135 million.
Meanwhile, Advanced Medical Solutions rose 16% as it confirmed it is in talks regarding a possible offer for the company, little more than 12 months after another potential suitor failed to secure a deal with the firm.
On Saturday, Sky News reported that Boston-based private equity firm TA Associates was preparing an offer for AMS worth around 280 pence per share, or £600 million in total.
On Monday, the Cheshire-based surgical dressings company confirmed the talks with TA Associates, but stressed there can be no certainty that a firm offer will be made.
In March 2025, AMS was the subject of bid interest from London-based mid-market private equity firm Montagu Private Equity LLP, although no formal offer materialised.
AJ Bell investment director Russ Mould noted the latest takeover talks mean that 20 firms on the UK stock market are already involved in bid discussions this year.
“Even though the would-be buyers are yet to set a price tag for five of the proposed transactions, the total value of bids on the table is already £29.3 billion, equivalent to the aggregate reached across all successful bids in 2025, and the largest sum at this stage for any year this decade,” he pointed out.
Mr Mould said the level of interest “suggests that would-be buyers still believe the UK stock market offers value”.
Gold traded at 4,806.14 dollars an ounce on Monday, down from 4,869.13 dollars at the same time on Friday.
The biggest risers on the FTSE 100 were Centrica, up 6.90p at 204.30p, BP, up 15.90p at 556.90p, Shell, up 78.50p at 3,274.50p, British American Tobacco, up 82.00p at 4,224.00p and SSE, up 47.00p at 2,516.50p.
The biggest fallers on the FTSE 100 were Metlen Energy & Metals, down 1.88p at 33.70p, Antofagasta, down 175.50p at 3,783.50p, Barratt Redrow, down 11.10p at 268.00p, Rolls Royce, down 48.20p at 1,262.40p and Fresnillo, down 120.00p at 3,662.00p.
Tuesday’s global economic calendar has UK unemployment and average earnings data at 7am, followed by US retail sales figures.
Tuesday’s local corporate calendar has a trading statement from miner Rio Tinto and half-year results from Primark owner Associated British Foods.
Contributed by Alliance News
New European border rules have caused delays at airports across the continent, affecting flights.
Source link
2026 NBA Draft Declarations Tracker: Florida’s Rueben Chinyelu Makes Decision
Education department forgives student loans for 21,200 borrowers: New changes explained
War Memes Are Turning Conflict Into Content
-
Fashion4 days agoFrance’s LVMH Q1 revenue falls 6%, shows resilience amid Iran war
-
Sports1 week agoThe case for Man United’s Fernandes as Premier League’s best
-
Entertainment1 week agoPalace left in shock as Prince William cancels grand ceremony
-
Business1 week agoUK could adopt EU single market rules under new legislation
-
Entertainment5 days agoIs Claude down? Here’s why users are seeing errors
-
Fashion1 week agoEnergy emerges as biggest cost driver in textile margins
-
Business1 week agoDelta Air Lines unveils first new Delta One suite in premium cabin arms race
-
Tech1 week agoA Lot of Shops Won’t Fix Electric Bikes. Here’s Why