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.

One Thing Ford Motor Company (F) Needs to Fix

Page 1 of 2

Ford’s world headquarters in Dearborn, Mich. Photo Credit: Ford Motor Company.

As any Ford investor would likely tell you, the biggest thing for Ford Motor Company (NYSE:F) to fix right now is its operations in Europe. Last year the company lost $1.7 billion in the region; it had planned to lose $2 billion this year, until management revised it down to $1.8 billion last quarter. Consider that management plans to turn a profit for the full year in 2015 – the equivalent of a magic trick that could instantly produce nearly $2 billion to Ford Motor Company (NYSE:F)’s net income, a big deal considering that Ford Motor Company (NYSE:F) reported $5.6 billion in net income last year. Ford just released its August results in Europe, and there are some very positive developments to consider: additional model launches, rental sales are down, and increased market share.

Market share improves
Ford Motor Company (NYSE:F)’s market share in Europe’s traditional 19 markets grew by 50 basis points to 7%, marking the fifth consecutive month of total market share gain. The reason behind that growth was a sales increase of 2.3% to 53,400 vehicles for August, while the overall market declined 5.7%.

Another positive sign for Ford Motor Company (NYSE:F) is that its small cars are selling well in the region. Ford’s passenger car retail market share in the five largest Western European markets, (U.K., Germany, France, Italy, and Spain) was 6.5% last month, up 1.1 percentage points.

According to Ford Motor Company (NYSE:F), it was the No. 2 brand in Europe in terms of sales in August which further strengthened its year-to-date No. 2 best-selling position. The company isn’t resting, though; there’s still a lot of ground to gain before profitability is reached in the region.

Ford’s 2014 Focus. Photo Credit: Ford Motor Company

Additional models will help
“Ford’s sales volume and share momentum is continuing in Europe thanks to our customers’ response to our ever-strengthening product line-up,” said Stephen Odell, president, Ford of Europe, in a press release. “Now we are going even further. … Today, we are confirming that we are accelerating our new vehicle introductions and now expect to introduce at least 25 new vehicles in Europe in the five year period from September 2012,”

Three of those models are still to be released by the end of this year, the EcoSport, Transit Connect, and Tourneo Connect.

More retail, less rental
When investors hear the words “fleet sales”, most consider it a hideous term. That isn’t always the case, as many fleet sales can be very profitable for automakers. What you don’t want to see is a surge in rental sales, and Ford has avoided that.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!