Ford Motor Co.
) announced that it will invest $200 million in the Cleveland
Engine Plant, Ohio for developing 2.0-liter EcoBoost engines, due
to their increased demand.
FORD MOTOR CO (F): Free Stock Analysis Report
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EcoBoost engines are 20% more fuel efficient than the
larger-displacement engines. These smaller-sized engines use
turbo charging, gasoline direct injection and variable valve
timing. Thus, it provides customer with outstanding performance
with fuel efficiency. They are available in Ford Explorer, Edge,
all-new Escape and all-new Fusion, Focus ST, Taurus and new
Lincoln MKZ and MKT Livery vehicles.
The 2.0-liter EcoBoost engine for North America is currently
produced in Valencia, Spain. But with this investment, the
production will be shifted to Ohio. Meanwhile, the Valencia
Engine Plant will continue to produce 2.0-liter EcoBoost engines
for Ford Europe-built vehicles. This move is a part of the
company's strategy to develop engines regionally. It also plans
to optimize production capabilities globally.
The company stated that there will be no job cut in the Valencia
plant, only some of the employees will be shifted to Valencia
Assembly Plant for supporting the increased production for C-MAX,
Kuga, Transit Connect and Tourneo Connect.
The Ohio plant currently employs around 1,300 people and
manufactures 3.5-liter EcoBoost and 3.7-liter V6 engines. The
production of 2.0-liter EcoBoost engine will start late 2014.
Ford also announced that it will create 450 new jobs in the
Cleveland Engine Plant. The company plans to employ 12,000 hourly
jobs in the U.S. by 2015. With this addition of workers, the
company has created 8,100 salaried and hourly jobs in the U.S.
Recently, Ford also announced that it plans to hire 2,200
salaried workers in the U.S. in 2013 for product development,
manufacturing and IT.
Currently, Ford retains a Zacks Rank #4 (Sell). The automaker
posted a robust 55.0% rise in earnings per share to 31 cents in
the fourth quarter of 2012 from 20 cents in the same quarter of
2011 (all excluding special items). With this, the company has
beaten the Zacks Consensus Estimate of 26 cents.
Net profit surged 55.7% to $1.2 billion from $797 million a year
ago, driven by the impressive North American results and, to some
extent, solid improvements in Asia Pacific Africa operations.
Total revenue grew 5.5% to $36.5 billion on a 7.5% rise in
wholesale volumes to 1.5 million units. It was higher than the
Zacks Consensus Estimate of $33.2 billion.
Few stocks that are performing well in the industry where Ford
Magna International Inc.
). Oshkosh and Strattec Security are Zacks Rank #1 (Strong Buy)
stocks while Magna International carries a Zacks Rank #2 (Buy).