Ford Motor Co.
) announced the temporary closure of a factory in Dearborn,
Michigan. The plant manufactures F-150 trucks and will remain
shut for 11 weeks. The automaker intends to make alterations in
the plant to produce F-150 trucks using aluminum instead of
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Another Ford factory based in Claycomo, Mo. manufactures F-150
trucks and will be closed for two weeks in 2014 for the upgrade.
It will again be shut in 2015 for further renovations.
Moreover, Ford will be providing discounts on the remaining 2014
F-150 in order to clear dealer stock. Owing to the plant closure
and discounts on the remaining vehicles Ford expects pre-tax
profit, excluding special items, in a range of $7 billion to $8
billion in 2014. However, Ford has increased the production of
F-series vehicles to create ample inventory level before the
Ford recently launched the aluminum version of Ford F-150, which
is believed to possess improved power, capability, efficiency and
durability. It will hit the market in the latter part of this
year and will offer five primary trims, including XL, XLT,
Lariat, Platinum and King Ranch.
The new Ford F-150 has been launched under the One Ford plan,
which focuses on producing vehicles that ensure quality, fuel
efficiency, safety, smart design and value to customers.
The new F-150 truck is manufactured using high-strength aluminum
alloys which reduce the vehicle's weight by 700 pounds. The light
weight results in improved speed and fuel efficiency. Aluminum
alloys are fast replacing steel, the widely used metal in the
Not only Ford,
General Motors Company
) also closed three factories producing pickup trucks for five,
seven and nine weeks, respectively, as per Motor Trend magazine.
The shutdown was made for renovations required to produce the
redesigned 2014 Chevrolet Silverado and GMC Sierra.
Ford currently carries a Zacks Rank #5 (Strong Sell). Some
better-ranked automobile stocks worth considering are
Tesla Motors, Inc.
Dongfeng Motor Group Company Ltd
). Tesla carries a Zacks Rank #1 (Strong Buy) while
Dongfeng Motor is a Zacks Rank #2 (Buy) stock.