Ford Motor Co.
) announced that the 2014 Focus Electric compact car will be
cheaper by 10%. The 2014 Focus Electric will soon hit the stores
and the base model carries a price tag of $35,200. This reflects
a $4,000 cut from the 2013 model's base price of $39,200.
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This price-cut will make Ford more competitive in the electric
passenger vehicles segment. Since the launch of the vehicle, the
automaker has produced 2,517 Focus electric cars and marketed
around 1,593 vehicles. During the first half of 2013, Ford sold
900 Focus Electric vehicles.
Other prominent players in the automobile industry including
General Motors Company
Honda Motor Co.
Nissan Motor Co. Ltd.
) had also cut prices to make their vehicles more affordable in
the competitive industry.
Recently, General Motors announced an incentive of $5,000 on the
Chevrolet Volt plug-in hybrid, which is priced at nearly $40,000
before federal and state tax credits. Nissan reduced the price of
2013 Leaf electric vehicle by $6,000 to $30,000 in the U.S.
U.S regulatory pressure for enhancing fuel efficiency will boost
the sales of electric vehicles in the near future. However, lack
of charging infrastructure for plug-in vehicles is putting
pressure on the sales volume of electric vehicles.
Among all the Detroit atomakers, Ford posted the biggest gain in
sales in Jun 2013. The company recorded a 13.4% rise in sales to
235,643 vehicles, driven mainly by strong demand for its pickups
and small cars. Its F-Series continued to be its most popular
pickup while Ford Fiesta and Focus small cars were consumers'
favorites during the month.
We expect Ford to beat earnings expectations when it reports
second-quarter 2013 results before the market opens on Jul 24.
Our proven model shows that Ford is likely to beat earnings
because it has the right combination of two key ingredients:
first, the earnings Expected Surprise Prediction or ESP stands at
2.7%, which is positive, and second, Ford carries a Zacks Rank #2
(Buy). Stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings.