EcoBoost Engine & Explorer Boost Ford Truck Sales

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Ford ( F ) increased U.S. sales of trucks and utilities by 11% year-on-year in April 2011 as the EcoBoost engine helped drive sales in an economy beset by increasing oil prices. We believe that the continued success of Ford trucks and crossovers will help Ford expand its North American market share. Ford mainly competes with auto manufacturers like BMW (GR:BMW), GM ( GM ), Daimler (ETR:DAI), Audi ( GR ), Honda (NYSE:HMC), and Toyota (NYSE:TM).

EcoBoost engine in trucks boosting Ford truck sales

Ford has made EcoBoost engines fundamental to its strategy of providing technologically advanced, high-output, smaller-displacement powertrains that deliver exceptional fuel economy and performance. This is leading to the increased adoption of EcoBoost by truck buyers who value fuel efficiency without compromising on capability.


The F-Series trucks led the increased sales of Ford Trucks in April. Ford 2011 F-150 truck was launched in January with four all-new powertrains including 2 V6 engines - a 3.7-liter and a 3.5-liter EcoBoost. The 2011 F-150 EcoBoost carries an EPA rating of 16 mpg in the city and 22 mpg on the highway, making it the best combination of capability and efficiency among light duty full-sized pickups.

The V6 equipped F-150 accounted for 50% of all 2011 F-150 retail sales in April'11 (up from 40% in March'11), and the EcoBoost engines accounted for 75% of the V6 sales.

We believe that Ford truck market share in North America will continue to expand as Ford plans to produce up to 1.5 million EcoBoost engines globally in a wide variety of vehicles from small cars to trucks by 2013.

New Ford Explorer drives sales of Ford Utilities

The Ford Explorer is attracting customers based upon its class-leading fuel economy of 25 mpg, as rated by the EPA. The all-new Ford Explorer was the fastest selling vehicle in the Ford showrooms from Jan to April, this year.

In April, sales increased 138% versus a year ago. A "conquest" rate of 43% indicates the success of Ford Explorer in attracting owners of other makes. Ford's conquest sales are sales where customers trade-in cars of other makes for Ford products and indicates converting new customers from other brands.

The continued success of Ford crossovers will provide further fuel to Ford truck's market share gains in North America.

You can drag the trend lines in the  modifiable charts above to see the impact of these trends on Ford's stock value.

See our complete analysis for Ford

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: F , GM , GR

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