Ford Motor Co.
) announced that it will be investing $80 million and will employ
350 new workers at its Kentucky truck plant. This initiative will
help the automaker meet the rising demand for the Ford F-Series
Super Duty trucks.
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Ford is witnessing rising demand for its F-Series Super Duty
trucks. Ford's F-Series has been the best-selling truck in the
U.S. for the last 37 years. It has also been America's
best-selling vehicle line for the last 32 years. The truck
line had total sales of over 750,000 in 2013.
Ford intends to use the $80 million investment for modifying and
retooling the facility and increasing its capacity to meet market
demand. This undertaking is expected to result in a 15% hike in
The Kentucky Truck Plant, which spreads across 6 million square
feet and has nearly 4,000 workers, started operating in 1969. The
plant manufactures F-250, F-350, F-450 and F-550 Super Duty
pickups, together with Ford Expedition and Lincoln Navigator.
With the implementation of this expansion strategy, the plant is
expected to manufacture the 5-millionth Ford F-Series Super Duty.
Kentucky is one of the largest auto-producing states in the U.S.
Most large auto manufacturers have facilities in the state.
Toyota Motor Corp.
) has a large production plant at Georgetown, KY, while
General Motors Co.
) produces Corvettes at a plant located in Bowling Green, KY.
Ford posted earnings per share of 31 cents in the fourth quarter
of 2013, which is in line with the fourth quarter of 2012 (all
excluding special items). With this, the company surpassed the
Zacks Consensus Estimate of 28 cents.
Revenues in the quarter grew 3.6% to $37.6 billion, exceeding the
Zacks Consensus Estimate of $35.47 billion. The improvement was
attributable to increased wholesale volumes in the automotive
Ford currently carries a Zacks Rank #5 (Strong Sell).
Tesla Motors, Inc.
), with a Zacks Rank #1 (Strong Buy), is a better-ranked stock in
the automobile industry and is worth considering.