All the hype isn’t limited to the Escape’s safety and exterior. The interior is impressive as well.
Interior of Ford’s 2014 Fusion. Photo: Ford.
Its dash and interior are made with great materials and have an excellent finished look. When you step in, you really get a sporty and modern impression.
One of the only knocks on the Escape, as pointed out in a recent study by J.D. Power & Associates, is the MyFord Touch system. While the 8-inch display has a nice look, it still has many tweaks to be made for it to quit frustrating consumers. This is to be expected and is often the case with new infotainment technology; expect it to improve over the next couple of years.
Investing takeaway
The Escape is part of a huge push in what Ford Motor Company (NYSE:F) calls the “Super Segment.” It’s basically four segments that Ford expects to surge in the coming years, represented by the Fusion, Focus, Fiesta, and Escape. In this case, a happy consumer equals happy investors, because the Escape brings in a higher transaction price than standard cars, and with premium options, it brings in better margins as well.
Ford is also years ahead of rival General Motors Company (NYSE:GM) in consolidating its global platforms, which is partially why Ford’s margins in North America came in at 11% last quarter compared with General Motors Company (NYSE:GM)’s 6.2%. The Escape also represents a push by Ford to change consumer perception — this is no longer the same Ford that produced poor-quality vehicles for years and years. It will take time to change that stereotype, but it is clear that the Escape is the best-selling SUV this year, and Ford’s best SUV since the Explorer dominated a decade ago.
America still has plenty of room for growth with its annual sales rate well below what we saw before the recession and the average age of vehicles at record highs. As our economy continues to grow and access to credit is available, expect sales for Ford’s popular vehicles to drive top-line revenues and bottom-line profits — a huge win for savvy investors.
Ford Motor Company (NYSE:F) share sits at a decent price today, nowhere near as undervalued as it was six months ago, but still a great opportunity for investors who are patient to watch its developments improve in Europe and China. I believe we could see Ford’s net income improve 50% by late 2015, and that would send the share price soaring — only time will tell, but Ford deserves to be on any investor watchlist.
The article Why Ford’s 2014 Escape Will Dominate Competition originally appeared on Fool.com and is written by Daniel Miller.
Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford.
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