Ford Motor Company (F): One Important Development

This is not just hype; it’s working. Ford’s Fiesta is drawing a younger audience composed of 46% form generations X and Y, compared to the Toyota Motor Corporation (ADR) (NYSE:TM)’s equivalent subcompact, the Scion, at 36%. According to Ford, another statistic to back up the importance of SYNC in the Fiesta was provided in a survey: 54% of consumers said an important factor in buying was the car’s connectivity technology – its SYNC and MyFord Touch – compared to 37% for Toyota.

Customers with vehicles that have the MyFord Touch have a higher rate of satisfaction with overall vehicle quality – a fight that Ford and other Detroit automakers have been waging for years to dispel stereotypes that they make low-quality vehicles. Ford Motor Company (NYSE:F) isn’t stopping there – since its launch it has already improved the MyFord Touch quality by 50% and still has another planned upgrade for this summer.

MyFord Touch and SYNC systems are definitely positioning Ford Motor Company (NYSE:F) well for its future bloodline of drivers, while increasing consumer satisfaction and loyalty. But what else should investors be happy about? Simple, these tech systems and premium options drive up the margins on each vehicle – which can be more difficult outside of luxury or full-size pickup segments.

Bottom line
Ford’s positioning itself very well for the short and long term. It’s selling vehicles at a phenomenal pace, and can hardly produce enough Fusions to keep up with demand. It’s full-size pickup is having its best year since the recession began and doesn’t look to be slowing down. Ford’s plants are operating near maximum capacity; with these premium tech options selling well, Ford’s second quarter is shaping up to be a great one. Last quarter its North America margins sat at a very healthy 11% and I wouldn’t be surprised if Ford was able to squeeze out a bit more – which would be incredible.

The article Ford Stock: 1 Important Development originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford.

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