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Business, Finance, Occupation & Industry

The Future of Ford's Vehicle Lineup

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By Daniel Miller, The Motley Fool

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What Ford has done with its economies of scale in the last four years has been nothing short of impressive. It was the single most important reason that a mere one year after Detroit brethren General Motors and Chrysler claimed bankruptcy, Ford was posting its first profit since the recession. Ford went from $30 billion in losses between 2006-2008 – through a recession in which we saw vehicle sales tank mercilessly – to a profit in 2009. It’s also the single most important reason that its operating margins top the industry, and hit 11% – very strong for the auto industry – in North America in the first quarter.

By the end of this year the goal is to have 85% of global sales from nine core platforms, but what do they look like? Here’s the look of Ford’s future, and it aims to please the masses – and investor profits along with it.

Image source: Ford Motor Co. first-quarter earnings review

Here’s a rundown of what you can expect from two of the most important platforms for global revenue growth going forward. I’ll cover another two tomorrow.

Fusion growth
Ford’s stylish Fusion sedan is setting the accounting books on fire, posting over 80,000 in sales for the first quarter – a record for the model. It strikes a perfect mix between value and fuel efficiency. It’s received this year’s “Green Car of the Year” award recently in Los Angeles as well as U.S. News & World Report’s 2013 “Best Car for the Money”. Those two qualities will be absolutely critical for the Fusion to replicate its success here and overseas.

Ford recently unveiled the new Mondeo/Fusion at the 2013 Shanghai Auto Show. Ford is aiming to double its market share in China by mid-decade and for this to happen the Fusion needs to be a hit with the Chinese. So far it has been met with much fanfare and is expected to be very competitive – it stands out on the road in a stylish way.

Unfortunately even the 30,000 in U.S. sales we saw in March may not be sustainable at current plant capacity. Typically, automakers want to have 65 days’ supply of high-volume sellers, and WardsAuto estimated the Fusion to have as few as 40 days inventory before March sales took place. This is a good problem to have, and the company has plans for extra plant resources at Flat Rock, Mich., to produce more of the sedan as soon as this coming fall.

Mustang growth
For growth purposes, it would have been easy to discuss the Focus or Fiesta here, but I think the Mustang offers unique potential among Ford’s vehicles. In 2012 it ranked seventh in Ford’s vehicle lineup for sales in the U.S and has slightly trailed the Camaro in the last three years. Its value isn’t limited to its sales figures, as the iconic American muscle car will always be a

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Ford's Stylish 2013 Fusion Is Changing Attitudes

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By Daniel Miller, The Motley Fool

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The midsize sedan segment is filled with competition, but if Ford or General Motors wants to regain market share lost to the Japanese, that is where it will be done. The majority of Detroit’s automakers’ profits come from trucks, but market share is driven by high volume vehicles such as Ford’s Fusion, Focus, and a couple others. The Fusion has had tremendous success, and is beginning to change consumers’ minds about the quality of Ford’s vehicles. Let’s take a look at how it’s selling and what critics are saying. One thing is clear: If Ford continues to have success with other vehicles as it has had with the Fusion, it will be a stock you want to own.

Sales success
Let’s first look at how tremendously well the Fusion has been doing this year. In January it topped its prior year by 65%, a very impressive increase. February was another strong month, topping last year’s record February by 28%. On Monday Ford released March sales information, and the Fusion – for the first time in history – delivered sales figures over 30,000 for the month and over 80,000 total for the quarter. Consumers are giving Ford’s Fusion a chance, and they’re driving them off the lot in a hurry.

Awards
The Fusion continues to add to its collection of trophies, locking up this year’s “Green Car of the Year” award at the auto show in Los Angeles. The Fusion beat five other models from Toyota, Mazda, Dodge, and wouldn’t you know it – another Ford model. One reason it won was due to the sheer number of fuel-efficient options it delivers to consumers. It has the conventional vehicle, a hybrid, plug-in hybrids, and multiple EcoBoost engines that offer increased gas mileage. 

Kelley Blue Book named the 2013 Fusion the “Best Redesigned Vehicle” of the year, describing the new ride as “gorgeous”. Its styling definitely takes on hints from Ford’s previously owned Aston-Martin brand, and has been a hit in a midsize segment that can sometimes lack innovative styling to appease the mass market. 

Looking at the U.S. News & World Report 2013 “Best Cars for Families” award, the Fusion won in the best midsize car category for three straight years now. In addition to that accolade, the hybrid version has won the top spot in its category for two years in a row. This award is based on quality, features, and space for families. Aside from family vehicles, the U.S. News also named the Fusion the best midsize car for your money. Ford’s brought home other awards, too, as it won “Best Cars for the Money” awards with six vehicles taking home first place – the most of any brand. I could go on, but that should be enough to emphasize that the Fusion is changing consumers’ minds. What’s all this mean for Ford investors, though? 

Bottom line
For investors it’s all about profits and market share, both …read more
Source: FULL ARTICLE at DailyFinance