Ford Motor Co.
) rose 1% to $15.39 on Feb 18, 2014 after the automaker announced
a 9.2% increase in January sales in Europe. Ford's European sales
growth was almost twice the industry rate of 4.7% in the 20 key
European markets of the company. Ford sold 80,800 vehicles in the
Euro 20 region and 90,700 in all the 50 European markets it
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January was the eighth consecutive month of European sales growth
for Ford. The company's share in the total vehicle market
increased 0.3% year over year to 7.5%.
In retail, where vehicles are sold to private customers, market
share went up 0.4% to 7.8% for Ford. This marked the 12th
consecutive month of increase in retail market share. The
company's commercial vehicle market share grew 0.9% to 10.4%,
highest since 1998.
The year-over-year increase in sales and market share can be
attributed to vehicle launches by the automaker. Ford launched 11
vehicles in the last 15 months, and plans to introduce more than
10 new vehicles in 2014. The vehicles include Tourneo Courier,
Transit Courier, Transit, Mondeo family, Mondeo Hybrid, and the
C-MAX Energi plug-in hybrid.
Ford sales to European retail and fleet customers went up 4% to
78% of total sales in Jan 2014, which is 6% above the industry
average. However, the company's sales to rentals and dealer
registrations dropped to 22% from 28% recorded in Jan 2013.
Increase in sales helped Ford to expand its market share in the
region. In the U.K., Ford's largest European market, total
vehicle sales increased 11% year over year, leading to 0.6%
increase in market share to 15.3%. In Germany Ford recorded a 38%
hike in sales, boosting market share by 1.6% to 7.4%.
Ford's global expansion plans, efforts to make the European
business profitable, the success of the One Ford plan and
sustained focus on hybrid cars are likely to boost the company's
future performance. However, we are concerned about the expected
decline in pre-tax profits and cash flow in 2014, weakness in
South America and rising debt and expenses.
Ford is one of the largest automobile producers in the world
General Motors Co.
Toyota Motor Corp.
Honda Motor Co., Ltd.
). Currently, Ford carries a Zacks Rank #3 (Hold).