Boston, MA 10/09/2013 (wallstreetpr) – Ford Motor Co (NYSE:F) is one of the key players in global automotive industry, which operates in two segments which are Automotive and Financial services. Company is having presence in six continents where it manufactured and distributes automobiles. Besides, automobiles it also derives its revenue from Vehicle financing through Ford Motor Credit Company.
In order to widen its network and offer the best product to the consumer, company has chartered a plan to increase its automobile manufacturing capacity by one third by setting up new plants in emerging economies which will help company to drive the volume growth. Company current capacity stands at 6 million cars, which is likely to go up to 8 million cars by end of 2017. Besides, increasing capacity, it is also focusing on cutting down cost thereby enhancing business productivity and foresees improvement in margin.
Post completion of the expansion plan in 2017, Ford will have near about 80 factories, where it plant to manufactured all its vehicles (cars & trucks) within 9 platforms which currently is at 15. Bring down platforms will not only enhance the productivity but also increase the margin. Company is also looking to setup plant in China and India to focus on customer specific needs and respond quickly to the change in preferences of the customers. In order to be the customer choice, company is working on couple of new technology to avoid road accident and makes drivers life easy to park a car by standing outside.
We believe that company current strategy of One Ford plan gives us the belief that company will continue to witness profit growth going ahead. Company strategy hovers around changing model mix and restructuring of operating activities; introduction of new products in lines changing wants of customers; focusing on strengthen the balance sheet as new capacity would come on stream be end of 2017 and benefit of same would accrue from 2018 onwards. Hence we believe that the current strategy will help company to build great product basket making product mix superior with luxury cars and make a business model strong.
