One Thing Ford Motor Company (F) Needs to Fix

“Compared to August 2012, Ford Motor Company (NYSE:F) sales to retail and fleet customers increased 10 percentage points to 77 percent of total sales – 5 percentage points better than industry average,” de Waard said. “At the same time, we reduced sales to rental companies and dealer self-registrations – which are generally less healthy for brand reputation and residual values – to 23 percent from 33 percent a year ago.”

These are three very positive developments for Ford in Europe. Also, consider that Ford has cut its capacity 18% in the region which will leave it well positioned to improve profitability. A year ago, losses in Europe caused some investors to sell off Ford stock, dropping it as low as $9. Today the story is different because investors can see the light at the end of the tunnel and Ford’s stock has risen accordingly, up over 70% in the last year. As more models are launched, retail share improves while rental sales decline, Ford is setting itself up to fix its biggest problem – a big win for long-term investors.

The article 1 Thing Ford Needs to Fix 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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