Seeking Alpha

More on Ford's U.S. sales

  • Ford (F +2.8%) saw consistent gains across its segments in March. Truck sales led the way with a 4.1% rise, while utilities sales were up 3.6% and car sales rose 2.6%.
  • The automaker reports that sales picked up mid-month and finished the month with some momentum.
  • Model sales growth: Mustang +21% to 9,305; Fusion +8.8% to 32,963; Focus -3.8% to 23,974; Fiesta -2.0% to 6,592; F-Series trucks +5.1% to 70,940.
  • Full sales report (.pdf)
Comments (11)
  • MintyFresh32
    , contributor
    Comments (373) | Send Message
     
    I'm not sure if I'd buy a lot of F at these prices, but the company seems to be executing incredibly well these days, and when it was back below $10 (which was not all that long ago), it was a pretty easy buy. Good discussion here: http://bit.ly/1olEoN5.
    1 Apr 2014, 09:54 AM Reply Like
  • RBusiness
    , contributor
    Comments (6) | Send Message
     
    @mintyfresh32

     

    I don't think NYSE:F will be at $10 or lower without a stock split or major world event. The mid-term upside at this point is about $2.50 (Strike at $18.50 or above) and the long is anywhere from 19.50 to who-knows!

     

    If you're thinking about F as an investment, i'd argue that now is the last chance to get it this cheap. I'd also say that you could see if it dips to mid to low 15s before it climbs.

     

    I'm long on NYSE: F | Planned strike @18.50 or higher depending on what's going on.
    1 Apr 2014, 10:51 AM Reply Like
  • MrMatt
    , contributor
    Comments (1372) | Send Message
     
    I think the valuation is pretty fair, little bit on the attractive side.

     

    I think their execution has been excellent, and they good product in every market.
    1 Apr 2014, 12:56 PM Reply Like
  • surfmaniac
    , contributor
    Comments (14) | Send Message
     
    You don't know much about the global automobile business apparently. F is now much more of a secular play rather than the cyclical nature of the company a few years ago. It's way more about Asia (specifically China) rather than North America and about the new F-150, which is the best selling vehicle on the planet. This stock trades at just 10X forward earnings and is a screaming buy anywhere below 18.
    1 Apr 2014, 10:48 AM Reply Like
  • User 12115671
    , contributor
    Comments (700) | Send Message
     
    Actually its about the increasing age of vehicles in the NA market as well. average age is 11 years. Vehicle replacement in NA is why auto is generally bullish. If SA, Europe, and Asia begin to do well at the same time there will not be an auto company that will not increase its share value.
    1 Apr 2014, 12:28 PM Reply Like
  • Tdot
    , contributor
    Comments (4826) | Send Message
     
    It would be interesting to see if the cyclical nature of auto stocks has been broken. The cycle is usually tied to external things like oil and gas prices, the economy, unemployment, consumer sentiment.

     

    Automakers thought they had the cyclical nature beat, with 2-3 year leases forcing customers to keep coming back, and being given incentives to do so. But that led to other problems with a huge fleet of shiny 2-3 year old used cars being shown on sale cheap right across the street.
    1 Apr 2014, 01:11 PM Reply Like
  • ted lujan
    , contributor
    Comments (856) | Send Message
     
    Those that wait until all the numbers are perfect will be left in a cloud of dust. By then the stock will be too high to buy. The early bird gets the worm.
    1 Apr 2014, 01:01 PM Reply Like
  • Jdeboer87
    , contributor
    Comments (282) | Send Message
     
    I'm not ready to declare victory on Ford, although I am a long investor. March did not recoup the poor sales in Jan and Feb. Great March, probably due to some pent up demand. Q2 will tell me more about how the year will fair.
    1 Apr 2014, 07:40 PM Reply Like
  • flumeride
    , contributor
    Comments (317) | Send Message
     
    I'm a little concerned about the focus sales down 3.8% and fiesta sales down 2%. Those are models that will sell well in China, Europe, India, etc. where the price of gas is higher than the U.S.

     

    Mustang sales are up 21%. That's good, but it is a new model and overall sales of Mustangs aren't the same scale as the Fusion or F series trucks. Those were up modestly as well which is good. But I do think a large portion of the future will be with the economy cars that have good mpg ratings.
    2 Apr 2014, 02:27 PM Reply Like
  • Tdot
    , contributor
    Comments (4826) | Send Message
     
    Flume - remember: those compact Focus and subcompact Fiesta sales you are quoting are for the US, not globally. US customers seem to be going upscale for the new midsize Fusion: it's sales are up 8.8%.

     

    So, while yes, Fiesta sales were down 136 units in March, and Focus sales were down 955 units for a total of 1091 fewer small cars, the Fusion was up 2679 units in the midsize class. And transaction prices and profits on Fusion are higher than the small cars. It is a good trade!

     

    Now if those pesky gasoline prices start to march back towards $5 this summer or next year, then one can assume folks may start looking at small cars again, and Ford will be ready and waiting with a diverse fleet of new cars in that class.

     

    But even then, the current Focus and Fiesta get about 33-34 mpg combined (around 40-41 highway), while the Fusion comes in at 29 mpg combined (around 37 mpg highway), so it is not like the Fusion has "bad" mpg ratings.
    2 Apr 2014, 03:47 PM Reply Like
  • flumeride
    , contributor
    Comments (317) | Send Message
     
    Tdot: I didn't realize that these sales numbers were domestic. Now that makes more sense and I feel more comfortable.
    3 Apr 2014, 02:52 PM Reply Like
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