Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Ford Motor Company (F) Continues to Set Record Sales in China

Page 1 of 2

Photo Credit: Ford Motor (NYSE:F)

Ford Motor Company (NYSE:F) investors have a lot to be happy about after this year’s run up of about 30%. That appears to just be the beginning of a long success story for a few different reasons. Momentum continues to build in the full-size truck segment which brings in more profit than any other segment for Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM). In addition to the truck segment, the entire industry is rebounding with June’s SAAR nearing 16 million for the first time in over five years. If Ford’s share price is to break through $20 it is going to need to drastically reverse losses in Europe or improve in China. The good news is that Ford is on track to do both.

Ford Motor Company (NYSE:F)Hidden success
The situation developing for Ford Motor Company (NYSE:F) in China right now is a very interesting one, and it’s almost a hidden success. When I say hidden success, I mean that if you look at the quarterly earnings reports you won’t see much profit coming from China, if any. That won’t be the case for long; by the end of the decade Ford expects China to represent as much as 40% of its revenues. As large capital investments in the region begin to slow, more of those revenues will carry to the bottom line – quickly driving Ford’s earnings higher.

It will take time and a lot of money because doubling Ford’s market share in China by 2015 is no easy task – yet Ford Motor Company (NYSE:F) expects to accomplish this goal. In addition to the 15 new models it will launch in China by mid-decade, it also takes an understanding of the culture, which Ford is continuing to gain knowledge of. Ford’s Kuga is a good example of this knowledge turning into success.

One of the reasons Ford Motor Company (NYSE:F) set record numbers in China, which I’m about to show you, was because of the Kuga compact crossover. It is a tweaked version of the Escape that we see every day, because in China many people that can afford the vehicle are businessmen who employ drivers and need luxurious and more spacious back seats to do business with clients. Ford was able to squeeze out some extra leg room using a couple tricks, and also upgraded the materials to give a more premium feel.

The Kuga is a hit with consumers, it’s helped lead to the impressive sales figures in China. With the first six months of 2013 in the record books, Ford’s sales in China increased 47% to 407,721 in wholesale units. The month of June alone was up 44% compared to last year and both figures set records for Ford Motor Company (NYSE:F).

Page 1 of 2
Loading Comments...