BofA Picks Ford for 2026 on Shift to Higher-Margin Gasoline Trucks
Bank of America reinstated coverage of North American OEMs, naming Ford as a top 2026 pick for its potential estimate upgrades driven by a focus on higher-margin gasoline trucks. He expects U.S. vehicle sales to exceed forecasts while EV volumes drop over 20% next year.
1. Coverage Reinstatement and Top Pick Status
Bank of America reinstated coverage of the North American automotive sector, naming Ford among its three top automaker picks for 2026 as the industry adapts to shifting regulations and evolving vehicle demand.
2. Emphasis on Gasoline-Powered Trucks
Analyst Alexander Perry highlighted Ford’s higher-margin gasoline pickup trucks as key profit drivers, citing a regulatory environment that now favors internal combustion engines and paves the way for upward estimate revisions.
3. 2026 Market Outlook and Sales Projections
Perry forecasts U.S. vehicle sales will outperform consensus next year, supported by pent-up demand and an aging 12.8-year average fleet, while predicting EV volumes will decline by over 20% as consumer incentives phase out.
4. EV Program Adjustments
The analyst anticipates automakers will delay or cancel about 40% of EV programs while extending over 45% of ICE programs, further reinforcing production priorities toward more profitable gasoline models.