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Ford Motor Announces Its New Investment Plans

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Price movement

Ford Motor (F) has a market cap of $49.0 billion. It fell by 0.72% to close at $12.34 per share on August 16, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.24%, -8.6%, and -7.5%, respectively, on the same day. F is trading 3.6% below its 20-day moving average, 4.1% below its 50-day moving average, and 3.9% below its 200-day moving average.

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Related ETFs and peers

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.88% of its holdings in Ford Motor. The ETF tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs (American depositary receipts), REITs, MLPs, CEFs (closed-end funds), preferred stocks, and royalty trusts. The YTD price movement of CVY was 9.5% on August 16.

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.83% of its holdings in Ford Motor. The ETF tracks an index that selects and weights value stocks from the S&P 500 Value Index using fundamental factors including sales, book value, and cash flows.

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

  • Toyota Motor (TM) — $195.1 billion
  • General Motors (GM) — $49.8 billion

Latest news on Ford Motor

Ford Motor and Baidu have invested $150 million in Velodyne, a maker of laser-based sensors. Reuters reported that “the investment, announced early Tuesday by the Silicon Valley tech firm, is intended to speed development of laser-based sensors and broaden its use in advanced driver assistance systems and eventually in self-driving cars.”

In the press release on August 16, 2016, Ford Motor reported, “Ford today announces its intent to have a high-volume, fully autonomous SAE[1. Society of Automotive Engineers] level 4-capable vehicle in commercial operation in 2021 in a ride-hailing or ride-sharing service.”

Ford Motor is planning to invest and collaborate with four startups, including Velodyne, SAIPS, Nirenberg Neuroscience LLC, and Civil Maps, to increase the autonomous vehicle development.

Sales of Ford Motor in July 2016

Ford Motor reported total vehicle sales of 216,479 units, a fall of 2.8% from July 2015.

Sales by brand:

  • the Ford brand reported sales of 207,381 units, a fall of 2.7% from July 2015, with its Focus car, Explorer SUV (sports utility vehicle), Escape SUV, and Taurus car sales falling by 17.9%, 22.2%, 10.2%, and 44.3%, respectively
  • the Lincoln brand reported sales of 9,098 units, a fall of 4.6% from July 2015

Sales by type:

  • cars: 59,854 units, a fall of 9.3% from July 2015
  • SUVs: 69,521 units, a fall of 5.6% from July 2015
  • trucks: 87,104 units, a rise of 4.8% from July 2015

The breakdown of sales in China is as follows:

  • Ford and its joint ventures reported sales of 88,189 units, a rise of 15.0% from July 2015
  • Changan Ford Automobile (CAF) reported sales of 69,074 units, a rise of 20% from July 2015, and sales of 503,719 units year-to-date, a rise of 11.0% from the same period last year
  • Jiangling Motor (JMC) reported sales of 17,748 units, a rise of 6% from July 2015, and sales of 139,262 units YTD, a fall of 5% from the same period last year

For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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