The Ford Motor company is an American company that ranks among the world’s leading car manufacturers. We can however divide its activities into different sectors. Most of its turnover is generated by the sale of Ford and Lincoln vehicles, while a small part of its activity concerns services such as the financing of those vehicles.
Ford’s main competitors:
The American company Ford was until, a few years ago, one of the leaders of the automobile industry in the world. But today, it is relegated to the end of the classification in face of increasingly aggressive competition from all over the world. To help you get a clearer idea and improve your fundamental analysis of Ford shares, here is some important information about Ford major competitors.
- Volkswagen is currently the world’s largest car seller with its brands Audi, Porsche, Seat, Skoda and Bentley.
- The Japanese company Toyota, which had been until then the leader in this sector was relegated to second position in the classification.
- American company General Motors and Nissan rank respectively third and fourth in this raking of the world’s largest car sellers in the world.
- You also need to take into account the competitors that are ranked lower in the classification such as PSA or Renault which remain serious threats to Ford in this market.
Ford’s main partners:
For several years, Ford has been a partner of BP with which it has developed technologies that focus on the energy consumption of motorized vehicles.
- In 1998, Ford became a partner of PSA to manufacture some of their engines. Both companies have just extended their partnership to 2018 for the production of diesel engines.
- In 2013, the Allianz group became a partner of Ford for mobility solutions and assisted driving in Europe, as well as for the distribution of insurances.
- In 2016, Ford also established a partnership with the group of online sales Amazon in order to create a device to remotely control a vehicle and combining the services of a connected home with those of a connected car.
Analysis of the price of Ford stocks:
Ford’s share price is currently listed on the Euronext Paris market in France. It is also part of the SP100 stock market index.
Important stock market data about Ford shares:
- In 2017, the total market capitalization of Ford was 44 659.63 MUSD.
- The number of titles issued by Ford and in circulation on the market is around 3 901 983 082.
- Fords share price is currently listed on the NYSE Main Market in the United States.
- Ford is also part of the PEA US Stock index and is therefore one of the largest companies with the strongest capitalization.
- Ford’s shareholding currently consists of 6.51% of shares from the Vanguard Group, 5.23% of shares from the Evercore Trust Company, 4.04% of shares from the State Street Corporation, 3.47% of shares from Black Rock, 2.04% of shares from Franklin Advisers, 1.92% of shares from the Wellington Management Company, 1.16% of shares from the State Street Global Advisors, 1.11% of shares from Barrow, Hanley, Mewhinney and Strauss, 1.06% of shares from the Northern Trust Investments and 0.95% of shares from the Dimensional Fund Advisors.
Ford’s economic and financial history:
- In 2000, Ford bought Land Rover from BMW.
- In 2007, Ford sold Aston Martin for 1 billion Dollars
- In 2008, Ford sold Jaguar and Land Rover to Tata Motors. That same year, it sold 2.04% of Mazda’s capital for 53.22 billion Yens or 425 million euros.
- In 2010, Ford sold the brand Volvo to Geely. The same year, the company abandoned the brand Mercury, which stopped its production before the end of the year. Finally, Ford reduced its stake in Mazda Motors to 3.5% and was no longer the first shareholder of the group.
- In 2010, Ford only own two brands against 8 in 2006, the historic brand Ford and the luxury brand Lincoln, the other brands were stopped or sold.
The advantages and strengths of the Ford share as a stock market asset:
To trade efficiently on Ford's share price, you must of course be able to anticipate future changes in this asset as accurately as possible. However, investors' interest in a stock market share is undoubtedly linked to the financial results and growth of the company issuing it. Therefore, it is interesting to know Ford's strengths and weaknesses in order to determine how it can behave in the future. First, here are some indications of the main strengths of this group.
First of all, one can of course mention among the advantages of the Ford group its excellent positioning in its sector of activity and the quality of its brand image. Indeed, the Ford group is currently one of the main players in the automotive industry in the world. As a result, it enjoys a very strong brand image that helps to sustain the popularity of its products and build customer loyalty over the long term. In addition, Ford's positioning as one of the world's largest automakers makes it easier for it to sell its vehicles and enjoy privileged relationships with its suppliers while remaining highly competitive.
Another interesting advantage to know this time is Ford's supply chain. Indeed, this supply chain has an international dimension that helps to promote the group's operations worldwide while reducing its manufacturing costs and enabling it to penetrate certain markets considered particularly attractive.
Finally, the last strong point of the Ford group concerns the efficient innovation process it is putting in place. Indeed, the company's innovation processes are particularly well designed to maximize the performance of the group's new vehicles. Since the implementation of the One Ford plan some ten years ago, these innovation processes have been strengthened and are still bearing fruit today. Every year, Ford invests a lot of money in research and development and tries to position itself in future segments such as electric or autonomous vehicles.
The disadvantages and weaknesses of the Ford share as a stock market asset:
As you can probably imagine, the Ford group does not only have strengths and also has weaknesses that you should also be aware of before you start trading this asset. Here are the negative elements that can influence the price of this share and therefore the main weaknesses of the Ford company.
First, it should be noted that the Ford group has a limited overall scope of its production network. Ford's network of production facilities is particularly limited compared to the networks of some of its competitors such as the Toyota group. The Ford group has closed several of its production units in Europe in recent decades, which has further weakened this network. This lack of geographical distribution of its production naturally leads to significant export costs that are reflected in the selling prices of the vehicles in this group.
Another disadvantage for Ford's profitability also concerns the higher costs it faces, compared to the more affordable costs incurred by its competitors. Here again, Japanese competitor Toyota has the lowest costs compared to Ford, particularly in terms of innovation processes. Moreover, Ford's ability to innovate, hampered by these high costs, is therefore slower than that of its main competitors and does not allow it to react quickly and effectively to new or emerging trends and market needs, even though the company has increased its efficiency in this area in recent years.
Finally, the last disadvantage of the Ford group concerns competition in general and in particular European competition, which has been booming in recent years. While Ford is still very well positioned on the American market, the European market is slipping away and its difficulties are becoming increasingly severe. In the long term, this could pose a problem for the overall profitability of this company.
As you can see, there are almost as many arguments in favour of increasing the price of Ford shares as there are in favour of decreasing them. These elements must therefore be analysed and compared carefully before any decision is taken on the trend to be followed. Of course, a full technical analysis will also be carried out here before drawing conclusions about future trends in this area.