"Focus Ford Focus"

[Perian]

Motley Fool
Focus, Ford, Focus
Wednesday March 2, 11:27 am ET
By Mike Cianciolo

Is Ford completely incapable of focusing on two things at once? Following month after month of declining car sales and improving truck sales, Ford just reported the opposite -- increased car sales, but lower truck sales -- for February. Unfortunately for Ford, truck sales pulled overall sales down 3% for the month, compared with last year's sales, which were down 2% from the previous year.

Car sales, meanwhile, climbed 9%, as Ford continued to benefit from its new vehicles. The Ford 500 and Mercury Montego combined to raise sales 35% over January's numbers. The new Mustang also remains a consumer favorite; its February sales jumped nearly 37% over January's.

It appears that Ford's trucks have finally cooled off, falling for the second month in a row. Truck sales ended the month down 8%. Ford's top-selling F-series line, which accounts for approximately 25% of the company's total sales, fell 11% last month. The drop is somewhat understandable, since the truck was flying off lots last year in response to its popular new design.

Analysts have forecast disappointing sales for Ford, as well as for its domestic rival General Motors -- good call, guys; I didn't see that one coming -- because of sluggish starts to the year. Ford seems to be aware of its situation and now plans to produce 940,000 vehicles in North America in the second quarter --11,000 fewer than last year.

Producing fewer vehicles is obviously not a good sign, but it's no surprise, considering Ford's recent performance. Hopefully, however, the move will allow Ford to avoid its usual practice of offering a plethora of incentives in an attempt to get the abundance of vehicles off its lots. Sales and earnings will continue to suffer in the near term as a result of the production cuts, but the move should allow Ford to avoid some markdowns further down the road.

While Ford works to find a satisfactory level of production, I expect its stock price to hover in a fairly narrow range. The price is getting tempting with a trailing P/E of 6, but I'd holding off until I'm sure Ford can prove it's capable of doing well in more than one area at a time.

[gmsickofan]

After reading several articles from the Motley Fool, I'm convinced they all drive hoity-toity Import brands, and love rubbing Detroit's nose in the mud every chance they get to elevate the status of their own rides.

[460ford]

oh i completely agree.I rarely ever read a review that is negative on an import. toyota could come out with the biggest p.o.s and they would still find a way to praise it.

[GMfan2381]

:-/ Lame article. Lame author.

[LS6CHEVY]

I agree

[markusername]

I disagree. These publications print a lot of good things about a lot of American companies - the ones that are leaders in thier class (GE, Microsoft, etc...).

Yes they do harp on GM and Ford, but they need to - these companies have been screwing up for decades and it's causing big problems for everyone who lives here.

You'r also right in that I haven't seen then harp on Toyota, but can you please tell me the last time Toyota produced a p.o.s.? Plus as an investor who has money in the stock market, I'm glad they do harp on GM and Ford because I want to see these guys get their but in gear and start doing something productive for a change. I mean, Toyota is valued more highly than GM, Ford, Chrysler, and Honda put together - obviously they are doing something right.

I would fire everyone at GM from top management to the UAW and start over. I just don't understand how they keep screwing up.

[460ford]

it is true that toyota doesnt make many p.o.s but their vehicles are often not best in class but they get treated as if they are, a lot of toyotas vehicles are average but still get praised as great.

[markusername]

Another reason I see these publications harping on GM and Ford is the difference in mentality. I posted this elsewhere but it applies here as well.

GM and Honda sales fell in Feb.

Honda's response: Our second best selling car, the civic, is an old design and no longer competitive, we will redesign it for next year.

GM's response: It was cold and snowing - that is why our sales fell. We're hopeing this global warming thing happens so it doesn't snow anymore and our sales will go up.

The difference in mentality of these companies is why business publications harp on GM and Ford. Based on the response of GM and Honda for Feb sales, which one would you harp on?

[awalbert88]

It's kind of hard to continue to increase truck sales when you've just set month after month of consecutive sales records. Of course it is going to peak and fall back to more reasonable volume.

[Cassie]

Take any car made by a Japanese company and stick it in a barn for 30 years, then see if anyone gives a hoot about it at the 2035 Jackson Hewitt classic car auction. I'm sorry but Toyota's and Honda's and the like are about as passionless in there design as possible. Yes, I could see maybe people being interested in Z cars or Miata's years from now. But look at a 1980 Z and compare it to the appeal of a 1980 vette. No contest what car is worth more or what car would be more likely to be restored. I would bet a PT Cruiser 30 years from now would be far more collectable than say a Toyota Matrix. In fact if I had the money, time, space...ect. to buy up some cars I thought would be collectable in 15 years or so I would find some nice cherry condition Fiero's, Reatta's, and Cutlass Supreme Convertables (that was a sweet car, esp, with the 200 hp engine the final year)

[IMPALAon20s]

ok, so their truck sales are balancing off, car sales are increasing due to new products. wheres the lack of focus as the title implies, having your car sales increase with new products just as your truck sales balance out as it is no longer a novelty sounds like good timing to me. i still dont like the 500 or the mustang, but have to admit they are doing well for ford. a friend of mine, who's a salesman at a ford dealership, says they cant keep the v8 mustangs in stock. says most are already spoken for once they come off ther trailer. said the first convertible they expect next week, has already been sold.

[New_Mexico_Sunset_on_Rt66]

Ford460 - Yea, I heard Toyota is coming out with the Toyota Turd, and it's getting rave reviews. You could put a Toyota emblem on a turd and it would sell. "It's not just a turd, it's the Toyota Turd."

[New_Mexico_Sunset_on_Rt66]

Cassie - Couldn't have said it better myself. Right on, brother !

[MN12Fan]

Originally Posted by New_Mexico_Sunset_on_Rt66

Cassie - Couldn't have said it better myself. Right on, brother !

Brother? Don't you mean sister?

[xtremegrandam]

Originally Posted by New_Mexico_Sunset_on_Rt66

Cassie - Couldn't have said it better myself. Right on, brother !

I agree also. Very good point!