Ford Finishes First Half of 2011 Strong

Jul. 5.11 | About: Ford Motor (F)

Ford (NYSE:F) finished the first half of 2011 strong by announcing June auto sales that were 14% better than 2010, and coming in above their sales in the month of May, lending credibility to their stance that the second half of 2011 will deliver sales figures above the first half.

The company reported June 2011 sales of 194,114 units. This figure represents a jump from 2010, and even came in slightly above the 192,000 in sales reported for May. Through the first 6 months of 2011 Ford's sales stand at about 1.07 million units.

"Strong demand for Ford’s fuel-efficient cars and crossovers continues, and we now are seeing truck buyers return to the market with significant appetite for our fuel-efficient V6 engines,” - Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service.

Ford has recently climbed above $14 per share after dipping as low as $12.77 on June 17th. Many investors believe that Ford has all of the right ingredients to make a run in 2011, but as yet it has not happened.

In Q1 of 2011, Ford enjoyed a 16.2% market share of sales. In three short months the company has increased that market share to 17.6%. While 1.4 points may not seem seem like a big deal, it represents a substantial shift in the dynamics of the market and demonstrates that Ford is gaining some of the market share being lost by Japanese manufactures due to the disaster in Japan.

Ford is on a pace to sell about 2.4 million vehicles out of an anticipated 13 million cars in 2011 representing an 18.5% share of the market. These are numbers that bode well for not only Ford as a company, but investors in Ford as well.

When compared to GM (NYSE:GM), Ford seems to be making the right moves. Ford has seen month over month sales climbs throughout Q2 of 2011 with 189,788 vehicles sold in April, 192,102 sold in May, and 194,114 sold in June. Meanwhile GM has seen their sales decline all quarter. In April GM posted sales of 232,538, reported 221,192 in May, and then 215,358 in June.

Ironically GM has not seen the dip in stock price that Ford has. Perhaps as this type of news gets absorbed by the street, Ford stock will appreciate.

Disclosure: I am long F. I have no position in GM and do not anticipate initiating a position in the next 72 hours