Ford Motor Co. ( F ) expects its Ford Fusion brand to gain market traction on rising demand in California. Ford Fusion retail registrations continue to increase at double the pace of the increase in the overall midsize sedan segment.
In Sep 2014, Fusion's market share had touched an all-time high of 12%, according to industry sales data. Further, the brand recorded strong sales during six of the last nine months.
The high Ford Fusion sedan sales have been driven by increasing demand from motorists in the Golden State. Retail registrations went up 27% in California through July. With this, California contributed 21% of Fusion's retail sales growth in the U.S.
California is the largest midsize sedan market in the country, followed by Texas. Sales volume of midsize sedans in the U.S. is improving. However, the midsize sedans' contribution to total sales is weaker than that of the other segments.
Meanwhile, Texas recorded 22% improvement in retail sales of Fusion. This represents 14% of the U.S. sales growth.
Since its launch in 2006, Ford Fusion has been facing competition from Japanese automakers who primarily dominate the midsize sedan segment. Fusion is specially designed to attract customers and thus record better sales.
Currently, Ford carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Gentherm Incorporated ( THRM ), China Automotive Systems Inc. ( CAAS ) and SORL Auto Parts, Inc. ( SORL ). While Gentherm Incorporated and China Automotive Systems sport a Zacks Rank #1 (Strong Buy), SORL Auto Parts carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report