Showing posts with label Ford. Show all posts
Showing posts with label Ford. Show all posts

4.26.2018

The end of the Sedan?



Ford To Phase Out 'Traditional Ford Sedans' Such As Fusion And Taurus In The U.S.

Excerpt:

Ford Motor Co. reported a $1.7 billion profit for the first quarter of 2018, but the company says it's planning big changes — such as phasing out all cars except for the Mustang and a crossover vehicle in the North American market, so it can focus on SUVs and trucks. 

"Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America," Ford said.

The cuts will take place over the next few years, Ford said. Over that time, it will phase out longstanding brands such as the Ford Fiesta and Taurus from the North American market.

Ford says that Lincoln sedans, including the Continental, will not be phased out.

With the planned cuts, Ford will say farewell to the Fusion sedan, of which 43,176 have been sold so far in 2018 — and the Focus, of which Ford has sold 35,046 cars this year. Over the same period, Ford has sold 19,164 Mustangs.

The Mustang and the upcoming Focus Active crossover are poised to become the only cars Ford sells in the North American market. The new U.S.-market version of the Focus will be made in China.
Ford And Chrysler Killing Sedans Is Great News For Their Japanese Competitors
Excerpt:

Ford Motor announced Wednesday that it's cutting traditional sedans from its U.S. lineup, except for the venerable Mustang, saying goodbye to the Fusion, Focus, Fiesta and Taurus so it can double down on trucks and sport utilities. (The Focus nameplate will stick around but in the form of a future crossover utility.)

"Ford realized it can't be everything to everyone, and in today's market that could be okay," said Jessica Caldwell, executive director of industry analysis for Edmunds. "The key to success is focusing on where your customers are and where your strengths lie, and for Ford doubling down on trucks and SUVs could be just what the brand needs."

Ford is not alone. Fiat Chrysler Automobiles already killed the Dodge Dart and Chrysler 200 to focus on more profitable Jeep SUVs and Ram pickups. General Motors has been cutting back on sedan production, too, eliminating a shift at its factory in Lordstown, Ohio, that makes the Cruze compact. Reports say the Chevrolet Sonic and Impala could be axed, too, while Cadillac is retooling its luxury lineup to focus more on SUVs.

The Detroit Three say they're simply following consumer preferences, which have shifted squarely in favor of SUVs and crossovers. And they're playing to their strengths, too: None of the domestic carmakers had a leading position in the passenger car market, so they might as well concentrate where they have the strongest following -- and higher profit margins.

Detroit's withdrawal from the sedan market is great news for the foreign-based players who remain: Toyota, Honda, Nissan and Hyundai, the latter of which has particularly been struggling in the U.S. due to its slowness in responding to the market turn to SUVs. With less competition, they ought to be able to raise prices and squeeze a bit more profit out of their traditional cars.
General Motors Sticking With Sedans As Ford Kills Off Most Cars in North America

Excerpt:

On a conference call with reporters to discuss first-quarter earnings, GM Chairman and CEO Mary Barra laid out why the automaker feels comfortable sticking with its stable of sedans and hatchbacks—for now—even as the market continues to shrink. The company poured a lot of money into refreshing most of the vehicles in question since 2015, and with those expenses in the rear view mirror, Barra believes it has a competitive lineup that won't require a lot of money to update over the next few years.

"The segments are still significant," Barra said, as highlighted by Ward's Auto. "Because we’ve made the investments, we need to deploy little to no capital going forward, so we view [cars] as an opportunity. What you’ll see us do is play very efficiently in a segment that, although it is declining, there is still an opportunity."

She has a point: Sedans and hatchbacks still account for a third of all car sales in this country, and the timing of Ford's exit has far more to do with the cost of redeveloping its aging lineup rather than overall consumer trends. And its decision to maintain the Ford Mustang roughly parallels the way Fiat-Chrysler killed off most of its small cars in 2016 and maintained the Dodge Charger, Challenger, and Chrysler 300, which are all built on the same decade-old platform.

That doesn't mean General Motors won't be making moves, though. The company will reportedly ditch the Chevrolet Sonic subcompact car as soon as this year, and it recently cut production of the Cruze in response to slowing demand. Chief Financial Officer Chuck Stevens added that his team examines the cost of producing each car model on a "weekly" basis.

But despite rumors of their demise, the Chevrolet Cruze, Malibu, and Impala should survive in the near term, along with the newly-launched Buick Regal and LaCrosse. There's still the question of Cadillac, though, whose CTS and ATS sedans and coupes are among the oldest cars in the GM lineup. Don't forget, former CEO Johan de Nysschen was ousted last week in part because he didn't respond quick enough to the crossover craze.

Comment: I'm a sedan guy! Our Buick LaCrosse has about 12K miles ..... and has gotten 27 mpg over it's short life. I've never had an SUV or a mini-van. I rented a Taurus on a family vacation once - very nice. Sad to see it go!


Our most recent cars:

1988 Crown Victoria

1996 Saturn wagon

2000 Impala

2002 Impala SS 

2007 Buick Lucerne (V8)

2017 LaCrosse
Related:


Below: My brother-in-law is trading in his Caddy for an SUV. Me? I would by a Caddy sedan:


Posted by Jim Peet at 4/26/2018 06:10:00 PM 1 comments

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11.18.2014

Will Ford's aluminum-bodied F-150 drive their stock? I think so!



Review: 2015 Ford F-150

Excerpt "the lightweight metal is also an indicator of a better truck":

Despite aluminum’s cost premium over steel, Ford kept price increases for its F-150 to less than $500 in some cases, but that doesn’t temper the shock of just how expensive full-size trucks have become. We drove a low-spec four-door XLT model with the 2.7-liter EcoBoost V-6, cloth seats, rear-wheel drive, and relatively few creature comforts that carried a sticker price of $42,875. That’s a problem that doesn’t plague just Ford, but the entire full-size-truck segment. If you’re going to spend that kind of money on a truck, though, the F-150 best justifies its price. Its aluminum body and bed mark a sea change in an industry that so often drifts with the current. Just as aluminum often indicates top-shelf beer these days, the lightweight metal is also an indicator of a better truck
Truck Wars: The Ultimate Question Facing Ford Motor Company's 2015 F-150

Excerpt:

It appears that consumers are indeed ready to accept an aluminum-bodied truck. It only appears that Ford's 2015 F-150 is too far advanced because its competition is so far behind. Make no mistake, this is a huge gamble on Ford's part, and it could become a huge and costly mistake -- but if Ford executes the launch flawlessly and consumers follow through on their interest, it could be a huge win.
This chart shows huge gains ahead for Ford

Excerpt:

The stock appears to be targeting a return to its 52-week highs at $18.12 per share, he said. “Ford continues to look very bullish here technically,” Newton said. “It looks very good.” Despite a large pullback in the stock over the summer, Ford’s stock held what Newton sees as a long-term uptrend in place since 2008. The stock’s low at $13.26 in October tested the uptrend and coincided with the 50 percent retracement level of the stock’s 2012 to 2014 rally. It subsequently bounced from there.
Comment: 5 years ago (July 2009), in one of my first stock trades, I bought 100 shares of Ford for under $ 7. Image source is screen capture from Ford

Posted by Jim Peet at 11/18/2014 11:09:00 AM 9 comments

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1.10.2013

Ford Doubles Dividend - Yield = 2.9%



Ford Doubles Dividend

Excerpt:
Ford (NYSE: F ) announced today that it will increase its quarterly dividend to $0.10 per share, double what it paid out in each quarter of 2012. At the automaker's current share price of $13.80, this news moves the company's annual dividend yield to approximately 3%.
Comment: My only auto stock ( and I don't have much of it!).

Posted by Jim Peet at 1/10/2013 05:56:00 PM 2 comments

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1.23.2011

Ford - quite a rebound

Ford to show biggest annual profit in a decade

Excerpt:

On Friday, Ford is expected to report an annual profit of about $8 billion, before a previously announced onetime charge of $960 million. That charge stems from the elimination of about $1.9 billion in debt in November and is viewed as a positive move by investors and analysts.

Ford has already earned $6.4 billion through September. For the final three months of the year, analysts surveyed by Thomson One Analytics, on average, expect Ford to earn 48 cents per share, or $1.7 billion before onetime charges.

Rebecca Lindland, director of strategic review for IHS Global Insight, said Ford's profits are remarkable, especially for a company that lost $30 billion from 2006 to 2008.

"It shows what a company that is well-managed and has been able to really reinvent itself can do," Lindland said.

Comment: We've got some shares that we bought for under $ 7. Now trading at nearly $ 18. It would be great to see Ford "pop" and be able to take some gains. I expect to hold on Ford for all of 2011

Posted by Jim Peet at 1/23/2011 03:07:00 PM 1 comments

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11.18.2010

GM's IPO

GM Stock Sale in High Gear - Government-Backed Car Maker Is on Pace to Score One of Largest U.S. IPOs Ever

Excerpts:

On Thursday, the stock opened 6% higher as GM Chief Executive Dan Akerson rang the opening bell on the New York Stock Exchange.

GM sold about 478 million shares Wednesday at $33 each, a price higher than the company and its bankers thought was possible just days ago. An additional 71.7 million shares are expected to be sold by GM's bankers as part of an "overallotment" allowed when sales are stronger than expected. And it sold $4.35 billion in preferred shares.

...

Buyers of the GM shares included giant pension and hedge funds as well as GM factory workers and retirees. Among foreign buyers will be China's largest car maker, SAIC Motor Corp., which is GM's biggest partner in the world's largest auto market. SAIC will buy about $500 million of shares for a GM stake of close to 1%, people familiar with the matter said.

Comment: It's going to be interesting to see how GM and F track.

Currently (9:37 am):

F = $ 16.50
GM = $ 35.44

One problem with IPO's is that it hard to judge the true value of the stock just out of the gate! My own prediction (although this is more or less a hunch!) is that GM is worth more in the $ 30 to $ 32 range. We'll see where they are in three months!

Posted by Jim Peet at 11/18/2010 09:39:00 AM 2 comments

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11.07.2010

Will GM's IPO drive Ford higher?

GM IPO Coming—Buy Ford Instead?

Excerpt:

Given Ford’s [F 16.21 0.35 (+2.21%) ] growing stable of every-popular cars, its increasing market share and its steadily improving balance sheet, Cramer thinks this stock should be worth more than GM. Ford has even paid off its legacy workers, which is a cash drain with which General Motors is still contending.

Bottom line? Ford has turned around and is on the upswing. GM, meanwhile, is still pulling itself together and trying to repair its damaged brand. So buy Ford shares instead.

You should get a good chance to do so when GM hits the open market. The initial talk about General Motors puts its market cap at about the same level as Ford, but Cramer thinks GM’s stock will “jump up big” at the opening, making Ford’s shares all the more attractive.

Comment: F, GM to sell over $13 billion of shares: sources.

Posted by Jim Peet at 11/07/2010 08:06:00 PM 0 comments

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10.26.2010

Blue Oval in the black!

Ford earns $1.7b in 3Q, pays down health care debt

Excerpt:

Ford Motor Co.'s third-quarter net income rose 68 percent as it grabbed a bigger share of the U.S. auto market and buyers paid more for its highly-rated cars and trucks.

It was Ford's sixth straight quarterly profit and the company's best third-quarter performance since at least 1990.

Ford CEO Alan Mulally said popular new cars, such as the Ford Fiesta subcompact and Ford Edge wagon, and aggressive cost-cutting helped the company make money despite lower global sales.

The automaker said it expects to end the year with as much cash as it has debt, a year earlier than it had previously forecast.

Ford, which four years ago mortgaged its factories, blue oval logo and other assets to fund a huge restructuring, said it paid off $2 billion in debt in the third quarter and expects to pay off an additional $3.6 billion for retiree health care on Friday. Ford's debt will stand at $22.8 billion after those two actions. It has $20.3 billion in cash.

When Ford pays its debt to the United Auto Workers health care trust, it will no longer owe the trust any money. The UAW agreed to the trust in 2007, and it began paying health care benefits for 195,000 retirees and spouses in January. The automaker was paying a 9 percent annual interest rate on its obligation to the trust.

Ford also said it is launching an offer to convert $3.5 billion in debt to common stock. The offer closes Nov. 23.

Ford's earnings of $1.7 billion, or 43 cents per share, beat Wall Street estimates.


Comment: I've got some Ford shares so I am pleased. I would like to see it reach $ 20 and then I would sell. (Now at $ 14)

Posted by Jim Peet at 10/26/2010 09:01:00 AM 1 comments

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7.22.2010

Harry Reid doesn't get it!

Harry Reid: Auto Bailout Probably Saved Ford

Comment: Ford did not take any bailout money from the government. (I have stock in Ford. I bought it was the auto market was really down and it looked like a bad investment. F. Meanwhile my dear mother had stock in GM and basically lost it all. More on GM's timeline from the Wall Street Journal)

Posted by Jim Peet at 7/22/2010 09:28:00 AM 0 comments

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1.28.2010

Ford: America's independent automaker

Ford posts first full-year net profit since 2005

Excerpt:

Ford Motor Co (NYSE:F - News) reported 2009 earnings of $2.7 billion on Thursday, its first full-year profit since 2005, and said it expects a 2010 profit amid market share gains and a slow U.S. auto sales recovery.

Ford also posted a fourth-quarter profit that soundly beat Wall Street forecasts. It attributed the full-year profit in part to cost-cutting, gains from debt-reduction efforts, good results from its financing arm and stronger pricing.

The automaker repeated its forecast that 2011 would be "solidly profitable," but Chief Financial Officer Lewis Booth cautioned that Ford still had to take steps to address its "uncompetitive balance sheet" and was watching for more signs the U.S. economic recovery would continue.

"We're working hard on that," Booth said of the balance sheet. "We did a lot last year and we have a lot more to do.

"The single most important thing is to see the economic recovery ... continue," he told reporters. "We are worried about how fragile that may be."

For the fourth quarter, Ford posted a profit of $868 million, or 25 cents per share, compared with a year-earlier loss of $6 billion, or a $2.51 per share. Revenue rose to $35.4 billion from $29 billion.


Comment: I'm a Ford stockholder

Posted by Jim Peet at 1/28/2010 08:44:00 AM 0 comments

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12.02.2008

Ford's Business plan submission

FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS; PROFIT TARGET, ELECTRIC CAR STRATEGY AMONG NEW DETAILS

Excerpt:

Ford Motor Company this morning submitted to Congress its comprehensive business plan, which details the company’s plan to return to profitability and outlines a request for potential access to a temporary bridge loan in case the current economic crisis worsens or there is a bankruptcy of a major competitor.

In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.

Ford is asking for access to up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.

Despite the serious global economic downturn, Ford said it does not anticipate a liquidity crisis in 2009 – barring a bankruptcy by one of its domestic competitors or a more severe economic downturn that would further cripple automotive sales and create additional cash challenges.


Comment: Link below is full PDF (33 pages). Interesting comments on the economy.

FORD MOTOR COMPANY BUSINESS PLAN - SUBMITTED TO THE SENATE BANKING COMMITTEE

Excerpts:

The forward economic outlook is also negative, with a wide range of possible outcomes due to the uncertain financial market environment. Real GDP is projected to decline significantly in the current quarter, as much as 4% or more as compared to the prior quarter (at an annualized rate). Consumer confidence is the weakest since the early 1980s, with nearly three in four consumers expecting the recession to deepen in the months ahead, according to the recent Survey of Consumers report released by Reuters/University of Michigan.

The economy is projected to contract through the first half of 2009, with a peakto-trough decline in real GDP in the 2.0% to 2.5% range. The housing sector decline, as measured by housing starts and sales, is expected to weaken somewhat from already low levels.

Spending by consumers has already fallen at an annual rate of nearly 4% in the third quarter (as compared to the second quarter). A further contraction in consumer spending is underway in the current quarter, with an additional step down likely in the first quarter of 2009. Consumers are weighing likely further employment declines and responding by increasing their saving rates and pulling back on purchases, especially of durable goods such as automobiles.

The financial crisis, now 16 months old, persists. Despite the actions taken by the Federal Government and the Federal Reserve (and other governmental institutions around the world), there is no near-term end in sight.



... we are acutely aware that our supply base, our labor structure, and our dealer network, among other factors, are sized for an industry and a market share that the domestic companies can no longer support.


there are other important policies that will help enhance the industry’s global competitiveness. First, Ford was proud to support stronger CAFE standards, and we are absolutely committed to meeting them. However, we urge Congress to maintain one economy-wide set of national standards on fuel economy. A patchwork of standards would place enormous financial and engineering burdens on manufacturers and have the effect of reducing consumer choice -- all for little or no environmental benefit.


Throughout the 1990s and into this decade, we became increasingly dependent in the U.S. market on trucks and large SUVs, which were in heavy demand by consumers and generated large profits. Many of our competitors, both foreign and domestic, likewise followed market demand and added more truck and SUV products to their lineups. Our focus on these vehicles, however, left us exposed in the event of a market shift to smaller, more fuelefficient vehicles. In anticipation of such a shift, and inspired by the compelling vision outlined by our Executive Chairman, Bill Ford, we began to refocus our portfolio earlier in this decade, introducing a new line of mid-size cars (the Fusion, Milan, and MKZ) as well as the first hybrid sport utility (the Ford Escape -- still the most fuel efficient sport utility available with an EPA city mileage rating of 34 miles per gallon). When fuel prices shot up rapidly earlier this year, the shift occurred much more quickly and was much more pronounced than we or anyone else in the industry anticipated.

In addition, we had, over a period of many years, created a labor structure that was uncompetitive with the foreign-owned transplant operations that had been established in the United States. And, we made small cars in the United States largely because of a requirement to meet federal Corporate Average Fuel Economy standards.


Comment: A worthwhile read.

Posted by Jim Peet at 12/02/2008 11:10:00 AM 0 comments

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2.05.2008

How they did it: The F-150 S/B centrifuge commercial

Behind the Scenes: F-150 centrifuge commercial

Comment: Interesting.

Posted by Jim Peet at 2/05/2008 02:11:00 PM 0 comments

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