Another Strong Month for Ford Motor Company (F)

Page 1 of 2

As expected, January was a great month for Ford Motor Company (NYSE:F) in the U.S.: The Blue Oval posted a 22% year-over-year sales gain. Strong new products drove good results as the U.S. auto market continued to pick up steam.

Ford’s monthly gain was well ahead of the consensus analyst estimate, which called for a 17% increase, according to Bloomberg. It was also well ahead of Detroit rivals General Motors Company (NYSE:GM) and Chrysler, each of which posted a 16% year-over-year increase.

Ford Motor Company (NYSE:F)It was Ford’s best January result since 2006, and a strong follow-up to a so-so result in December.

Better yet for shareholders, there were some promising trends behind the headline number.

Market forces leading to a rising tide in auto sales
Ford, like other automakers, is benefiting from some macro trends that should drive continued auto sales growth as 2013 unfolds, starting with the number of consumers reentering the leasing market.

U.S. new-car sales, including leasing, fell sharply during the 2008-2009 economic crisis. Some “pent-up demand” led to a spike in new-car leases during 2010 – leases that will come to an end during 2013. According to analysts at Edmunds.com, that alone should add roughly half a million car shoppers in 2013 versus 2012.

That, plus better availability of consumer credit than in recent years, should continue to drive overall auto sales higher for some time longer. While sales have been up in each of the past three years, the overall market is still well below levels that were typical in the years before the economic crisis.

There’s still considerable room to grow, in other words. And Ford should be well-positioned to take advantage.

Ford’s latest hit paces a strong month
For Ford, probably the biggest news in January was the strong result for its new Fusion sedan, released last fall. Consumer interest in the stylish new car has been strong, but dealer inventories had been short as Ford ramped up production lines – a problem that the company was able to address as 2013 opened.

Those improved inventories led to a big result. Sales of the new Fusion were up a whopping 65% over year-ago sales of the prior model, which had been a consistently strong seller in its own right. It was the best-ever January result for Fusion, Ford said, beating the 2011 record by over 50%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!