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 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

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!