Despite having a considerably rough couple of years, Ford Motors (NYSE: F) has always been able to ensure that it keeps its head above water. In the wake of an extremely bearish outlook on this stock that claims Ford has been grossly overvalued, it has still been able to maintain its growth and keeps on hitting those analysts’ predictions. Although a great deal of critics still maintain that Ford should have a share price far lower than what it currently is, I would like to challenge all those who are of this opinion. This is due to the fact that Ford has not only proved its adaptability to the rapidly changing nature of the motor vehicle markets but has also managed to increase sales in the previous month. Reports indicate that the sales made by Ford in the past month alone rose by approximately 7% to reach 207,759 car sales which is quite impressive considering the fact that the economy is still struggling. This means that this car manufacturer has been able to reach the hearts of consumers and entice them into buying their vehicles at a time when luxury spending has been reported to be on the down low. What also gives me great confidence in the future prosperity of Ford is that while still managing to increase its sales, it has also been able to stay at par if not ahead of well seasoned competitors such as Toyota Motors (NYSE: TM).
Emphasis on the best value for money
From its onset, Ford has always been a car manufacturer with that extra special ingredient that has made clients to keep on coming back for more. Due to the emerging technological trends, it has been imperative that car manufacturers find the best ways to ensure that they incorporate different forms of technology to ease the use of their vehicles. Since calls from environmental conservation groups to manufacturers to ensure that the vehicles produced do not harm the environment through pollution have become increasingly adamant, Ford has had to go back to the drawing board and come up with new car designs that adhere to these policies. Ford has been working overtime in order to catch up with competitors such as Honda (NYSE: HMC) and General Motors (NYSE: GM) in the development of more fuel efficient and cleaner car models. With the manufacture and subsequent distribution of the Ford Focus electric powered vehicle, Ford has without captured a huge portion of the electric car market. This vehicle has been rated as the most fuel efficient five passenger vehicle in the United States and the fact that owners will never again have to worry about the rising fuel prices is another perk that comes with owning it. This is an advantage as a result of the fact that it will add more revenue to its already steady cash inflow.
Steering clear of legal troubles
Although all major vehicle manufacturers have not been able to stay away from legal problems, the manner in which such troubles are handled speaks volumes about the competency of the management. One of the most publicized legal problems was the accusation made against Ford which alleged that this vehicle manufacturer had been selling trucks with defective fuel linings for close to ten years. This undoubtedly dealt a significant blow to Ford’s credibility to its clients as further investigation into the matter revealed that the manufacturer had secretly informed dealers of the defect but made no attempt to notify the general public. Luckily for Ford, a previous ruling that had excluded some of the evidence it had presented in its defense was overruled and the matter is supposed to be placed on the hands of the jurors. The ruling also reversed a $2 billion settlement that Ford was to pay the dealers which I’m quite sure has had shareholders let out a breath of relief. I believe that Ford was able to handle this matter with quite a bit of grace and had it been any another vehicle manufacturer, the outcome may have been totally different.
All in all, regardless of what critics may say Ford has a bright future ahead and if it maintains its standards with regards to innovation and designs, it will surely move from the number two spot to become the leading automobile manufacturer.
