Ford Motor Co.
(
F
) started producing its new plug-in hybrid C-Max Energi at its
retooled Michigan assembly plant that is capable of manufacturing
vehicles based on multiple platforms. The automaker overhauled
the 55-year-old plant in 2009 by spending $550 million that used
to roll out Expedition and Lincoln Navigator full-size SUVs.
According to Ford, the Michigan plant is the only existing plant
in the world that produces gas-powered, hybrid, plug-in hybrid
and electric cars all on the same production line due to its
advanced retooling and trained workers capable of producing a
wider range of models. Currently, the plant can produce five body
styles on two platforms, including gas-powered versions of the
Ford Focus compact car.
Unlike its peers, Ford has undertaken "One Manufacturing"
strategy, which aims at producing multiple models from plants
across the world in order to save production costs and fast
adaptation to changes in consumer tastes. In contrast, Ford's
cross town rival
General Motors Company
(
GM
) and Japan's
Nissan Motor Co.
(
NSANY
) produce their Chevrolet Volt and Nissan Leaf, respectively, at
plants having standalone platforms.
According to Jim Tetreault - head of manufacturing in North
America, this flexible manufacturing style becomes possible,
especially at plants that produce cars, sedans and crossovers and
not trucks, which have different designing requirements. Ford
anticipates producing 4.5 models at each of its plants by 2015,
up from 3.6 models currently.
Apart from Michigan, Ford's plant in Oakville, Ontario can
deliver three body styles on two platforms and in Louisville,
Kentucky, six styles on three platforms. The company now intends
to make its other plants capable of producing vehicles based on
multiple platforms; however, doing so, the company might face
challenges in modifying fuel economy and safety requirements.
Ford, a Zacks #3 Rank (Hold) company, posted a 17.6% rise in
earnings per share to 40 cents in the third quarter of the year
from 34 cents a year ago, driven by impressive results in its
North American operation and, to some extent, its Asian
operation. With this, the company has also beaten the Zacks
Consensus Estimate by 10 cents per share. Total profit rose 15.6%
to $1.6 billion from $1.4 billion a year ago.
However, total revenue in the quarter slid 3.0% to $32.1 billion
due to lower revenues in South America, Europe and Financial
Services operations that offset the marginal improvement in
revenues in North America and Asia. However, revenues were higher
than the Zacks Consensus Estimate of $31.0 billion for the
quarter.
FORD MOTOR CO (F): Free Stock Analysis Report
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NISSAN ADR (NSANY): Free Stock Analysis
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