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Ford Motor’s New $224.28 Million Investment in Its Romanian Unit

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Price movement of Ford Motor Company

Ford Motor Company (F) has a market cap of $54.0 billion. Ford fell by 0.51% to close at $13.59 per share on March 22, 2016. The price movements on a weekly, monthly, and year-to-date (or YTD) basis were 2.7%, 8.2%, and -0.30%, respectively.

Currently, Ford Motor Company (F) is trading 3.5% above its 20-day moving average, 10.3% above its 50-day moving average, and 0.94% above its 200-day moving average.

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The Guggenheim Multi-Asset Income ETF (CVY) invests 0.95% of its holdings in Ford Motor Company (F). This ETF tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs, REITs, MLPs, CEFs, preferred stocks, and royalty trusts. The YTD price movement of CVY was 3.2%.

The market caps of Ford Motor’s competitors are as follows:

  • Tesla Motors (TSLA) – $30.9 billion
  • General Motors (GM) – $49.3 billion
  • Honda Motor Company (HMC) – $49.7 billion

Ford Motor Company’s new plan

Ford Motor Company is planning to invest up to 200 million euros ($224.28 million) at its Romanian unit Automobile Craiova. This investment will be used to build its small sports utility vehicle, EcoSport. There will be no change in the headcount in the Romanian unit.

According to Jim Farley, Ford Europe’s president and CEO, “Ford sales will rise above 200,000 SUVs in Europe this year, a more than 30 percent rise on the year.” The company will host an Investor Day on Wednesday, September 14, 2016, in Dearborn, Michigan.

Sales of Ford Motor in February 2016

Sales by brand:

  • Ford Motor reported total vehicles sales of 217,192 units, a rise of 20.4% from February 2015.
  • Ford brand sales rose to 209,153 units, a rise of 20.1% from February 2015.
  • Lincoln brand sales rose to 8,039 units, a rise of 30.4% from February 2015.

Sales by type:

  • Car sales rose to 66,613 units, a rise of 18.8% from February 2015.
  • Utilities sales rose to 70,328 units, a rise of 29.2% from February 2015.
  • Trucks sales rose to 80,251 units, a rise of 14.8% from February 2015.

Ford Trucks and the Ford Motor Company Fund are joining with the Texas Future Farmers of America Association to sponsor the automaker’s Driving Skills for Life program. The program encourages safe driving habits among teenagers throughout Texas.

Next, let’s take a look at ConAgra Foods.

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