Ford Motor Co.
) posted strong China sales in February owing to the rising
demand for Ford Focus, a highly popular vehicle in the country.
China sales escalated 67% year over year to 73,040 vehicles. The
automaker witnessed 59% improved China sales in the first two
months of 2014, bringing the figure to 167,506 vehicles, compared
to Jan & Feb sales of 2013.
Sales of passenger cars, including imported cars, surged 88% to
56,284 units for Ford China. In comparison, passenger car sales
in Feb 2013 amounted to 29,950 vehicles.
Ford offers fuel efficient, high quality vehicles, integrated
with safety features and smart technologies. Buoyed by these
features, Ford Mondeo and Ford Focus maintained demand and
recorded sales growth in China. Ford Mondeo sales grew 123% to
7,755 units in Feb 2014 while Ford Focus recorded a 13%
year-over-year increase in sales to 27,899 units.
Meanwhile, Ford's passenger car joint venture, Changan Ford
Automobile (CAF), witnessed an 81% increase in sales in Feb 2014
to 53,272 units, compared with 29,389 units in Jan 2013.
Further, Ford's commercial vehicle investment in China, Jiangling
Motors Corporation (JMC), recorded 16,756 wholesale vehicle sales
in Jan 2014. Sales surged 22% from 13,684 vehicles in Feb 2013.
China is one of the biggest automotive markets and is expected to
record strong performance in the years to come. Ford recorded
high sales in the nation in recent times but the profit margin
was impacted by investments in new factories in the region.
However, Ford's China sales in Feb 2014 declined from 94,466
wholesale vehicles sold in Jan 2014. However, Ford is expected to
benefit from the product launches and increased investment in the
Ford is pursuing a major expansion plan in the mature and
emerging markets including China. Last Month, Ford announced its
partnership with China Mobile. Under this partnership, Ford's
vehicles will be feature two popular apps, Lingxi and Fetion,
through its SYNC AppLink technology platform. SYNC AppLink will
be integrated in Ford Focus and the new Ford Fiesta in China by
the end of this year.
Ford currently carries a Zacks Rank #3 (Hold). Some better-ranked
automobile stocks worth considering are
Tata Motors Ltd.
Toyota Motor Corp.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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