Ford Motor Company (NYSE:F) breaking the index mould

Posted by Nathan Alexander June 26, 2013 0 Comment 1289 views

Ford Motor Company (NYSE:F) and Aston Martin have reportedly agreed on an extension of their engine-supply contract for an additional five years. As per The Sunday Times, the new deal will see Ford supplying Aston Martin with V12 and V8 and engines manufactured at its Germany plant. This year, Ford’s F-150 pickup, paced the biggest gain in United States market share amongst automakers. It topped the list of most American-made models, a consumer website and replaced Toyota’s Camry sedan which had had a four-year run at being in the top spot in the 2013, Car’’s American-made index. This index ranks various model lines based on their individual sales and also on whether truck or car parts as well as completed vehicles are built in America.

This year, the company’s F-Series trucks have fuelled the biggest U.S. sales increase amongst major automakers and had climbed 22% through May end. Last month, Ford said that it is adding 2,000 workers as well as a third shift at its Missouri factory that manufactures F-150’s. This will increase the pickup production starting in the Q3. The F-150 is also assembled at another plant in Michigan which is where Ford is based.

Are index Methodologies accurate?
According to Autodata Corp, this year, deliveries of Ford’s light vehicles rose 13%, through May to 1.05M. The company’s market share boosted by 0.8 percentage point in that period to 16.4%.Toyota’s Tundra was the one only other pickup to make it to the American-Made index. It made a steady y-to-y and ranked seventh. Previously, the F-150 held top spot on the list from 2006- 2008.

Though a lot of industry watchers follow it, the methodology would probably be more accurate if it had accounted for such factors like company headquarters. The other factors that possibly also make a difference are vehicle assembly and Research & Development locations. All these factors are important in maintaining vibrancy within the auto communities in the U.S. however, at the moment, as far as Ford Motor Company (NYSE:F) is concerned, no matter on which scale or index it is measured on, it is still a winner.

About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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