Ford Motor Co.
) has announced the creation of a new business unit - Ford
Middle East and Africa - effective Jan 1, 2014. The unit will
cover the company's automotive business in 47 Ford markets in the
North Africa, Sub-Saharan Africa, South Africa and Middle East
The unit will be divided into two sub-regions - South Africa
and Sub-Saharan Africa, and the Middle East and North Africa -
for efficient management. The new business unit will be
headquartered in Dubai along with a regional office each in the
city and South Africa.
Currently, Ford reports its financial results in four business
segments - Ford North America, Ford South America, Ford Europe
and Ford Asia Pacific Africa. These segments form its Automotive
sector, while the Financial Services sector comprises Ford Motor
Credit Company and Other Financial Services reporting
The new unit is being created to capitalize on the growing
importance of the Middle East and African markets, which are
expected to witness strong growth. The combined region is
expected to witness a 40% surge in industry sales to 5.5 million
Ford witnessed a 20% year-over-year increase in sales in the
Middle East in the first nine months of 2013. Sales of the Ford
and Lincoln brands in the region have surged 60% over the last 4
To strengthen its foothold in this lucrative market, Ford will
launch 17 new or revamped cars under the Ford and Lincoln brands
in the next 2 years. These include the Ford Fusion sedan and the
EcoSport small SUV that were showcased at the 2013 Dubai
International Motor Show on Nov 5.
Additionally, Ford is concentrating on developing a strong
dealer network to provide efficient customer service in the
region. The company is also focusing on making customer support
and car parts easily accessible in the region.
Jim Benintende, currently the director of Ford Export
Operations and Global Growth Initiatives, will manage the
operations of the new business unit.
Ford currently carries a Zacks Rank #1 (Strong Buy). Other
major automobile stocks worth considering are
Fox Factory Holding Corp.
General Motors Company
). While Daimler is a Zacks Rank #1 stock, the other two carry a
Zacks Rank #2 (Buy).
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