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UBS weighs in on Ford (F -1.9%) with positive comments to back up the firm's Buy rating on the...

UBS weighs in on Ford (F -1.9%) with positive comments to back up the firm's Buy rating on the automaker. It's a timely defense with shares dipping below the $10 mark for the first time since last November.
Comments (12)
  • spald_fr
    , contributor
    Comments (2705) | Send Message
     
    They are certainly not selling Lincolns. It would be worthwhile to take Ford's current luxury offerings and rename them Mercury models, price them like Kias per unit and sell to the non-luxury market. Get a reputation for "Mercury gives a lot of car for the money".
    25 Jun 2012, 01:07 PM Reply Like
  • Tdot
    , contributor
    Comments (3449) | Send Message
     
    OK let's see if this makes any sense: Take the current Lincolns, drop the price by around, say, 50% to match Kia's lineup, and somehow make up the losses on higher volumes?

     

    Great Idea! Oh wait - that is how GM went bankrupt. And Chrysler.

     

    Probably a good thing that you are nowhere near the line of succession after Alan Mulally...
    27 Jun 2012, 09:07 AM Reply Like
  • spald_fr
    , contributor
    Comments (2705) | Send Message
     
    [Take the current Lincolns, drop the price by around, say, 50% to match Kia's lineup . . .]

     

    Not 50% but 25%:

     

    I challenge you to shop for a Lincoln MKX versus a Kia Sorento. The MKX will be around $40K and the loaded Sorento about $38K. Nearly identical hardware, one with the Lincoln "cache" and the Kia without the cache.

     

    I predict you will be able to purchase the MKX at $40K and the Sorento for $28K. Same hardware, same doodads, better warranty with Kia.
    28 Jun 2012, 09:16 AM Reply Like
  • DJS1843
    , contributor
    Comments (32) | Send Message
     
    There is no rhyme or reason why Ford stock is not running up. I'm still long, but it sure is testing my will to stay in for the "long haul."
    25 Jun 2012, 02:34 PM Reply Like
  • spald_fr
    , contributor
    Comments (2705) | Send Message
     
    [I'm still long, but it sure is testing my will to stay in for the "long haul." ]

     

    I know what you mean.

     

    Lincoln's U.S. sales have dropped 1 percent to 34,418 through May in an overall market that has increased 13 percent. That's less than 3K units per month but I seem to recall two years ago Lincoln sold 5K units per month.
    25 Jun 2012, 02:52 PM Reply Like
  • flumeride
    , contributor
    Comments (267) | Send Message
     
    You're on to something Spald. The Lincoln's are nice, but they aren't a big upgrade from the Fords, except in the case of the Navigator. But with high gas prices and a weak economy there isn't much of a market for any vehicle that gets 12 mpg. I think they need to overhaul the Lincoln's and make them true luxury vehicles. They don't need a lot of change, but they need more differentiation. I think they also need to break the Lincoln dealerships from Ford. I bought a couple of Lincoln's before they combined the dealerships and it is was a night and day difference. The Lincoln dealerships didn't give you a high pressure sales pitch. They basically showed you the car, explained the features, let you take test drive and told you the price. Most the cars were fully loaded. There wasn't a lot haggling over price. It was a much more pleasant experience than going to a Ford dealership and having the salesman keep asking "what can I do for you to buy a car today?"
    25 Jun 2012, 04:31 PM Reply Like
  • spald_fr
    , contributor
    Comments (2705) | Send Message
     
    I really do want to purchase a Ford product, partially for the good of American industry.

     

    However, I'm not going to purchase an over-priced auto. During seven decades on this earth, one would think I'm the correct Lincoln target buyer.

     

    Shopping last week, no negotiation for any Lincoln product even though it looked like there were 200 Lincolns on the lot. The salesman told me no special deals were in the works. I open the WSJ today and see a full-page ad for special leasing arrangements, $0 down, $0 first month payment and $0 cash due at signing, for a 39 month lease of $489/month. Not a deal I would readily consider, but a deal nonetheless.

     

    Alan Roger Mulally, you are the one who should communicate your sales strategy to your salesmen, not me. They are *not* listening to me, too, by the way.
    28 Jun 2012, 09:26 AM Reply Like
  • TFCAB
    , contributor
    Comments (1942) | Send Message
     
    DJS - I'm with you. Not holding a ton of shares but distressing none the less to watch it's price fade on nearly a daily basis. Reminds me of a piece of furniture that sits unused in the corner of the room. Every time you walk by it you are reminded how expensive it was but cant for the life of you remember why you bought it. Oh yeah.....its coming back to me.....because it was a great "deal" Long F
    25 Jun 2012, 08:31 PM Reply Like
  • LouSav
    , contributor
    Comments (12) | Send Message
     
    Why is F on hold?

     

    Reasons: euro zone, obamacare, real estate freeze, rule instead of representation, debasing by the fed, etc.

     

    The reality is that perception is reality. We have to wait until the trifecta in November to change the outlook. Baring any global eruptions F is a gold mine waiting to deliver.
    26 Jun 2012, 10:47 AM Reply Like
  • spald_fr
    , contributor
    Comments (2705) | Send Message
     
    From your lips to the Creator's ears.
    28 Jun 2012, 09:30 AM Reply Like
  • DJS1843
    , contributor
    Comments (32) | Send Message
     
    I remember the old Lincoln Town Car. Great ride, but a gas guzzler. Ford would be better off to phase this car out of their line-up and concentrate on the Fusion, Focus, and Trucks. I have confidence in Ford's Market Strategy overall. I'm disappointed now, but will stay long on F, as I've said before...................
    1 Jul 2012, 02:12 PM Reply Like
  • Tdot
    , contributor
    Comments (3449) | Send Message
     
    DJ - Great Idea!

     

    But production of the "old" Lincoln Town Car ended with the 2011 model year almost a year ago, although there might still be some few left in dealership inventories. Ford sold 607 of them out of lingering inventories through the year as of the end of May, and the number was 513 as of the end of April, so 94 sold during May. We'll find out on Monday how many sold during June, but it is probably less than 100. Ford ended production last year because, as you imply, nothing could be done with it to affordably achieve fuel economy targets, and Ford would have had to sell a lot more Fiesta and Focus cars making 33 mpg combined to make up the fleet-wide difference.

     

    So Ford has already phased the Town Car out of the lineup as you suggest, and has concentrated on Fusion (up 9% to an all time high of 27k units in May and 112k through the year), and Focus (up 11% to 25k units in May and up 44% through the year to 110k) and Trucks (up 21% in May to 75k and up 10% to 336k through the year). Again, we'll get updates on those numbers tomorrow (July 2), based on June sales.

     

    Note that 2012 Fusion production ends soon (if it hasn't already), and the all new "second generation" 2013 Fusion goes into full production later this summer. So there might be some slack in Fusion sales during the summer while production tools switch over, leftover spare parts are warehoused, and the dealerships sell off the remaining 2012 inventory and await arrival of the 2013s.

     

    But Ford's Lincoln division has not abandoned the Town Car label, as some Lincoln MkT large crossovers are being converted for Taxi and Limousine service under the name. The MkT Town Car Limo gets 23 mpg (20 city, 28 hwy) while the old Town Car got 19 mpg (16 city, 24 hwy).
    1 Jul 2012, 03:43 PM Reply Like
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