Auto News Roundup: Ford Motor Company (F)’s Boost in Europe, Tesla Motors Inc (TSLA) Hits a Higher Gear, and General Motors Company (GM)’s Latest Union Brawl

Page 1 of 2

Ford (F) General Motors Company (GM)This week’s big news in the auto business included happy milestones for Ford Motor Company (NYSE:F) and Tesla Motors Inc (NASDAQ:TSLA) shareholders, signs that things are looking up for some (but not all) automakers in long-troubled Europe, and a war of words — and more — between General Motors Company (NYSE:GM) and a powerful overseas union.

Here’s what you need to know about the latest developments around the world.

Big gains for Ford in struggling Europe
We’ll start with Europe, where new-car sales have fallen to a 20-year low and automakers have piled up huge losses. Ford Motor Company (NYSE:F) is Europe’s second-biggest auto brand after Volkswagen, and it has certainly had its share of red ink — the Blue Oval’s European branch lost more than $1.7 billion last year, and executives have predicted that losses could hit $2 billion in 2013.

The just-refreshed Ford Fiesta is one of Europe’s best-selling vehicles. Photo credit: Ford Motor Company (NYSE:F).

Ford Motor Company (NYSE:F) launched a major turnaround effort last fall, hoping to break even in 2015 – but already, there are some signs that things are looking up. Ford said on Friday that its sales in the 19 countries it counts as “Europe” were actually up 6.4% last month — even as the overall industry was down 6.5%. Ford said its latest new models were key contributors to the gains.

That drove Ford Motor Company (NYSE:F)’s Europe market share to 8.2%, up a full percentage point from June of last year. Better yet for Ford, this wasn’t just a quick boost from rental-fleet business. Ford’s rental-fleet sales are down in Europe, the result of a conscious decision to focus on more profitable retail and commercial-vehicle sales.

Ford Motor Company (NYSE:F) lost $462 million in Europe in the first quarter. Its second-quarter earnings report is due later this month. If it shows that Ford’s losses in Europe have narrowed, that will be a good sign that the plan really is working — and it could give Ford’s stock price a nice boost.

New highs for Tesla Motors — and Ford stock, too
Bloomberg noted earlier this week that America’s oldest and youngest automakers — that would be Ford and Tesla Motors Inc (NASDAQ:TSLA) — both saw their shares hit “100-week highs” on Tuesday.

For Tesla Motors Inc (NASDAQ:TSLA), of course, that was its all-time high. The upstart Silicon Valley automaker saw its shares boosted by the news that its stock will join the benchmark Nasdaq 100 Index, just three years after the company’s initial offering.

Production of Tesla’s hot Model S sedan is increasing, the company said this week. Photo credit: Tesla Motors.

Tesla CEO Elon Musk also said this week that the company has increased its production of the electric Model S sedan, surpassing its longtime goal of making 400 cars a week. Musk said the company is now aiming at a production rate of 800 vehicles a week by the end of next year. Tesla expects to sell about 21,000 cars this year.

Meanwhile, Ford Motor Company (NYSE:F) stock is gaining thanks to a surging new-vehicle market in the U.S., which has given sales of its F-Series pickups a big boost in recent months. The F-Series is a key driver of Ford’s profits, and the lineup’s 22% sales increase in the first half of 2013 is expected to drive strong earnings in Ford’s home market of North America.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!