Ford Motor Company (Ford or "the company") is one of the largest automotive manufacturers in the world. The company manufactures and distributes automobiles across six continents. It also provides financial services through Ford Motor Credit. The company's key automotive vehicle brands include Ford and Lincoln. Ford primarily operates in North America, Europe, and South America. It is headquartered in Dearborn, Michigan.
In our opinion Ford does not have a moat. Ford’s success relies on excellent execution, which they have been able to deliver. Vehicle manufacturing is a very capital-intensive business, but barriers to entry are not as high as in the past.
Ford closed out 2014 on a soft note. In 2015 - 15 vehicles are set to launch this year. Initial response to Ford's all-new F-150 has been favorable. The pickup, which features significantly increased aluminum content, made its U.S. debut in December. The truck will be rolled out to 90 markets this year. Ford shares retain their long-term appeal. In our opinion over the next decade the stock offers above-average appreciation potential and a comparatively sizable dividend yield.
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Strong market position across product portfolio
Intense focus on sustainability and fuel efficient technologies
Robust research and development capabilities
Frequent product recalls
Decline of unit sales in certain countries
Intense competition and pricing pressure
Currency fluctuations and trade policy risks for the South American operations
New product launches
Increased focus on emerging markets
Recovery of automotive market in the US
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