Ford Motor Co.
) announced that it will invest roughly $773.0 million for new
equipments and capacity expansions in six manufacturing
facilities located in Southeast Michigan. The investment is part
of the Ford's commitment to invest $6.2 billion in U.S. plants by
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Ford is aggressively expanding its capacity and launching new
products to meet the rising demand for fuel-efficient vehicles
and F-Series pickup trucks. This investment will strengthen the
manufacturing capacity of the company in Southeast Michigan and
support its expansion strategies.
The company plans to invest $59.4 million in the Michigan
assembly plant for the expansion of the stamping press line. The
company expects to spend $305.0 million in the Dearborn stamping
plant to modernize the plant, add new press lines, scrap conveyor
system and other machinery and equipment. Ford will also invest
$161 million in the Flat Rock assembly plant for additional
machinery and equipments for assembling the new Ford Fusion and
enhance the production capacity.
The company also plans to allocate $86 million in the Sterling
axle plant, which will be utilized for additional machinery and
equipment to meet the rising demand for axle and deal with the
future model changes. Meanwhile, Van Dyke Transmission plant will
see an investment of $87.7 million in machinery and equipments
for the capacity expansion of 6F35 and 6F50 transmissions. The
remaining $74.7 million will be invested in Livonia Transmission
plant for additional transmission and test equipments.
This move taken by the company will create additional 2,350
hourly jobs and retain another 3,240 hourly jobs. This expansion
of workforce is a part of the company's plan to expand employment
opportunities by 12,000 hourly jobs in the U.S. by 2015.
In the next six months, Ford intends to bring a new stamping
press in the Michigan assembly plant and install equipments for
four new stamping presses at Dearborn stamping plant. Ford also
plans to complete the expansion at Flat Rock assembly plant,
where new Fusion will be produced next year.
Michigan-based Ford is one of the largest automobile producers in
the world. The company operates in two segments: Automotive and
Financial services. Although the company's primary selling ground
is the U.S.; Europe, South America and the Asia-Pacific
constitute its other major markets.
Ford 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
surpassed the Zacks Consensus Estimate by 10 cents per share.
Total profit rose 15.6% to $1.6 billion from $1.4 billion a year
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
Ford, whose cross-town rivals include
General Motors Company
), maintains a Zacks #2 Rank, which translates into a short-term
(1 to 3 months) Buy rating.