Ford leavng GM and Chrysler in the dust

Despite the promising progress on the parts of GM and Chrysler, Ford is quickly putting distance between itself and the other two companies; certainly a perk of operating free of the interference of the federal government and bankruptcy court. The company”s year over year sales for September rose 40% and it gained retail market share in 23 of the last 24 months. GM”s year over year sales rose by 11% last month.

Morgan Stanley has indicated its confidence Ford, initiating stock coverage with a target price of $20 per share. The stock is currently at $13, and was below $3 two years ago.

“Our forecasts give Ford credit for a transformational turnaround yielding performance far exceeding its own historical averages and places the company among a select group of global automotive firms,” said analyst Adam Jones.

The momentum is likely to continue, as Ford is moving briskly toward electrifying its fleet and expects 5% of its global feet to be a mix of gas-electric hybrids, plug-in hybrids, and battery powered electric vehicles. That share is expected to reach as high as 25% by 2020.

Fords recent streamlining has also helped; as of 2006, Ford was producing 97 nameplates on 27 platforms, which will be reduced dramatically after Mercury is discontinued to 32 nameplates on 15 platforms worldwide.

– By: Stephen Calogera

Source: Fortune

Chris Chin

Chris Chin is the Editor-In-Chief of egmCarTech and is a regular contributor to Automobile Magazine.

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