Ford Motor Co.
) EcoBoost engine have caught the fancy of consumers, thus
driving demand. As a result, the company recently announced
crossing the milestone of manufacturing 2 million of these
fuel-saving engines. The automaker presently produces over
100,000 engines per month on an average, a 54% surge from 65,000
produced in 2012.
Ford EcoBoost promises fuel efficiency, which perhaps is what
most consumers look for. According to EPA's fuel economy
estimates, 2013 F-150 2WD with a 3.5-liter EcoBoost V6 engine
will result in annual fuel expenditure of $3,000, whereas a 2009
Ford F-150 2WD with a 5.4-liter V8 engine requires a spending of
EcoBoost technology offers turbocharging, direct injection and
variable valve timing. Ford EcoBoost engines, which are also
smaller in size, offer 20% more fuel efficiency compared to the
larger-displacement gasoline engines. The EcoBoost engine are now
available in 1.0-liter three-cylinder; 1.5-liter, 1.6-liter and
2.0-liter four-cylinder; and 3.5-liter V6 versions.
Greater acceptance of EcoBoost technology will boost the demand
of Ford's EcoBoost-powered vehicles. The company recently started
manufacturing the Ford Escape powered by EcoBoost - a 2.0-liter
unit - at its Louisville, KY plant.
EcoBoost technology is broadly accepted in North America. Around
90% of Ford Escape features a 1.6-liter or 2.0-liter EcoBoost
engine and 50% of customers buying Fusion select one of the three
EcoBoost engines - 1.5-liter, 1.6-liter or 2.0-liter. Moreover,
the company sold 42% of F-150 trucks equipped with the 3.5-liter
Ford expects that 90% of its vehicle available in North America
will be featuring EcoBoost technology in 2013 and it will go up
to 95% in 2015. The automaker is also investing about $200
million to produce 2.0-liter EcoBoost engines at its Cleveland,
The company will be launching the new 2014 Ford Fiesta later this
year. It will be the first vehicle available in the U.S with the
1.0-liter engine, and is expected to be the most fuel-efficient
non-hybrid car in the U.S.
Ford not only expanded its EcoBoost technology in North America
but also enhanced its capacity and production in Europe and Asia
Pacific. The automaker doubled its production capacity at its
Cologne, Germany, engine plant to more than 1,000 engines per day
to meet the rising demand for the 1.0-liter EcoBoost engine. It
is expected that 11 car models will feature the 1.0-liter
EcoBoost engine in Europe by 2014.
Sales of EcoBoost engine in Asia Pacific jumped 202% year over
year in the first 8 months of 2013, driven by a 189% hike in
sales in China. With this rising demand, Ford plans to launch
EcoBoost engines in 20 vehicles in the region by 2015. The
EcoBoost technology is driving the sales of Kuga and Edge in
Ford currently has a Zacks Rank #3 (Hold). Other major automobile
stocks worth considering are
Nissan Motor Co. Ltd
Tesla Motors, Inc.
). Volkswagen carries a Zacks Rank #1 (Strong Buy), while Nissan
and Tesla carry a Zacks Rank #2 (Buy).
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