Ford Motor Company (NYSE:F)‘s turnaround has been one for the history books. Near collapse in 2006, the automaker borrowed big to finance its own turnaround – and succeeded in remarkable style.
Ford Motor Company (NYSE:F)’s profits have been strong, especially in its home market in North America. And investors who bought Ford Motor Company (NYSE:F) stock in the dark days of 2009 have been richly rewarded.
But even though profits have been strong, the overhaul of Ford Motor Company (NYSE:F) isn’t a done deal. The company still has a lot of work to do in Europe, and is spending big to finance a huge expansion in Asia.
Last week, I talked about Ford’s effort in Europe, and how that effort could add nearly $2 billion to Ford’s bottom line in a couple of years. When you consider that Ford Motor Company (NYSE:F) made $8 billion before taxes last year, that’s a significant gain.
That’s one good reason to buy Ford Motor Company (NYSE:F) stock. Here’s another: It turns out that Ford is winning lot of new fans – in China. And that too should help Ford’s bottom line, not to mention the price of Ford’s stock.
Huge investments for growth already showing promise
Ford’s efforts in Asia probably haven’t been reflected in its stock price yet, because so far, the company has mostly broken even in the region. But look a little closer: Ford has broken even in Asia while making massive investments to expand there – some of Ford’s biggest investments ever.
Ford has already committed almost $5 billion to expand in Asia, much of that in China, where the company is building several new factories. Why China? Because it’s now the world’s largest auto market. General Motors Company (NYSE:GM) and Volkswagen are the big leaders in China, but Ford is determined to make a dent in their market shares.
Ford introduced its new Focus in China last spring, and it has turned out to be very popular. Sales in China helped propel the Focus to the top of the worldwide sales charts last year – beating out Toyota Motor Corporation (ADR) (NYSE:TM) and its Corolla, according to research firm R. L. Polk.