Ford Motor Company (NYSE:F) stock got a refreshing boost over the last couple of days, climbing $0.15 over two sessions and closing at $9.59 yesterday. The movement is likely caused by an Aug 15 release concerning Ford’s work on its hybrid electrified vehicles.
The company announced that it’s investing upwards of $130 million in the development and manufacturing of parts for its new lineup of hybrids. Ford also stated that they are doubling their testing capacity by 2013 in an effort to put new products on the market at a competitive pace. The company is constantly hiring engineers and adding more to what is reportedly their highest number of all time. The new facility devoted to R&D is expected to allow Ford to complete projects approximately 25% faster and limit the third parties involved in the process.
The release looks very promising and can be seen as the main reason behind the micro price surge of Ford stock. At any rate, the news is a refreshing change of pace after all the vehicle recall information that’s been muddying Ford’s waters lately.
Ford are struggling with shrinking net income and expected near-billion losses on the European market. Their most recent 10-Q reports a $2.5 billion gap down in net profits for the first half of 2012 compared against 2011.
If Ford manages to execute its ONE Ford strategy in an efficient and timely manner, the issues it faces may be alleviated to an extent where the company has a real chance to reach out to early 2012 levels.
