Ford Motor Company (F): One Important Development

Photo Credit: Ford Motor Company (NYSE:F).

One of the things I enjoy about my job covering the automotive industry is taking events that are typically overlooked and putting the facts in line for investors to understand why those events are important. This is a perfect example of such a time: Recently Ford Motor Company (NYSE:F) announced that its SYNC and MyFord Touch were sold on nearly 80% of its 2013 Ford Motor Company (NYSE:F) vehicles. That doesn’t seem like a big deal, but what if I told you that that development will aid Ford in two of the most important factors when it comes to potential investors?

Future bloodline
An investor looks at many factors when choosing companies to buy a stake in. It’s great to find an amazing company at a low price, and then hold on to it for the long term. It’s even better when that company has an industry-leading executive team. Ford Motor Company (NYSE:F) delivers on all these factors. The next thing that an investor wants to see is proof of a future bloodline and sustainable profits – that’s where the recent sales increase of SYNC and MyFord Touch comes in to play.

It’s a well-known fact that, for many reasons, young people are driving less. Cars are expensive, and so is gas. In addition to that, my generation is bogged down with massive amounts of school loan debt, and find themselves in a job market that, while improving, still presents difficulties. It’s a scenario that keeps Detroit automotive executives up at night.

One way that Ford Motor Company (NYSE:F) has been battling this situation is with new advertising campaigns that harness the power of social networks to attract younger consumers in a way that they can relate to. Considering all the technology that millennials have grown accustomed to, tech options inside vehicles are growing to attract millennials that want to connect their automobiles to a part of their social identities.

By the numbers, 80% of Ford’s vehicles this year are equipped with the technology to attract its future bloodline, which is double the sales mix of infotainment systems sold in Toyota Motor Corporation (ADR) (NYSE:TM) or Honda vehicles. Moreover, as these vehicles are used for years then traded in, it gives Ford Motor Company (NYSE:F) a used car with better value than it has seen in a decade, and a chance to attract yet another young consumer buying her first vehicle. More Ford Motor Company (NYSE:F) vehicles in the used car market down the road will be better positioned to continue the growth of its future bloodline – a great thing for Ford investors.