Hybrids, Electrics and Overseas Growth Pushing Ford Motor
Andrew Leckey

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About Ford Motor Co.

Ticker: F

Exchange: NYSE

What does the company do? Manufactures cars and trucks

2009 Financial report:

Net sales: $118.3 billion

Net income: $2.7 billion

Q. I am a Ford Motor Co. shareholder. Can my shares continue their upswing? -- B.L., via the Internet

A. Prospects are good, although the auto industry is cyclical, meeting higher fuel standards is expensive, and labor will look to gain from the company's improved fortunes.

Despite a more upscale, quality image, the seller of Ford and Lincoln brands still has to combat the belief of some Americans that foreign vehicles are superior.

This firm that managed to avoid a government-supported reorganization is enjoying its strongest sales and profits in years, while reducing its debt load and improving its cash flow.

Ford (F) shares are up 7 percent this year following gains of 68 percent last year and 290 percent in 2009. Class A shares are available to any investor and carry one vote, while the Ford family always has 40 percent voting power through its ownership of Class B shares.

Overseas holds promise: Ford's India unit had a near-threefold sales gain in 2010, while its China unit posted a 40 percent increase. The firm is in preliminary talks with Chinese authorities to export more North American-built vehicles to China.

Ford placed highest among the volume brands in the 2010 J.D. Power and Associates Initial Quality Study. In the U.S., its F-150 truck, Fusion, Fiesta and Focus are especially popular, and it is also well ahead of competitors in its ability to use common vehicle platforms for various models.

Consensus analyst opinion on Ford shares is "buy," according to Thomson Reuters, consisting of four "strong buys," seven "buys," seven "holds" and one "underperform."

Ford expects to hire thousands of workers in the U.S. over the next two years. Its plans are to spread its small-car engineering expenses over 2 million small cars annually, providing an economy of scale that should permit the manufacturing of more affordable hybrid and electric vehicles.

The fully electric Focus makes its debut in late 2011 in the U.S. and 2012 in Europe. It will be built on the same Wayne, Mich. assembly line as the gasoline version of the car and features the first mobile charger. By 2013, Ford will offer five vehicles that use electricity, including hybrids.

Ford earnings are expected to rise 5 percent in 2011 versus the 6 percent decline predicted for the auto industry, according to Thomson Reuters. The five-year annualized growth rate is projected to be 19 percent compared to 21 percent forecast industry-wide.

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