Ford Motor Co.
) unveiled a concept version of its Lincoln MKC at the Detroit
Auto Show, a luxury crossover designed to tap the burgeoning
potential of the luxury vehicles market in the U.S. The vehicle
will share the same platform of Ford Escape sports utility
vehicle (SUV) and will feature the same push-button transmission
available in the Lincoln MKZ sedan.
Lincoln is the only surviving luxury line of Ford after the sale
of Jaguar, Land Rover, Aston Martin and Volvo. Ford began to
expand its luxury Lincoln line-up at the cost of its Mercury
line-up from late 2010.
According to Ford, the premium crossover segment has more than
tripled in the past four years. Further, the company expects a
7.5% growth in the luxury vehicle market in the U.S. The
automaker aims to revive the lackluster image of Lincoln brand by
launching new models and undertaking aggressive marketing
Ford plans to roll out seven all new or significantly upgraded
new generation Lincoln models by 2015, including a small car in
2014. However, the company is likely to face strong competition
from luxury lineups introduced by other automakers, including BMW
AG's X3 and
Honda Motor Co.
) Acura RDX.
Last year, Ford announced plans to introduce Lincoln in China's
booming luxury vehicles market in order to beat its rival market
General Motors Company
). The automaker aims to launch the lineup in the second half of
The company had revealed that the Lincolns to be sold in China
will be initially manufactured in North America. However, they
will be costlier than the U.S. due to luxury taxes (based on
engine size) and import duties.
Ford, a Zacks Rank #3 (Hold) stock, 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
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.
FORD MOTOR CO (F): Free Stock Analysis Report
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HONDA MOTOR (HMC): Free Stock Analysis Report
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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