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Ford Motor Appoints Rajendra Rao as CEO of Smart Mobility Unit

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Price movement

Ford Motor (F) has a market cap of $47.6 billion. It fell 0.99% to close at $11.97 per share on September 29, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.7%, -4.6%, and -10.2%, respectively, on the same day. F is trading 2.7% below its 20-day moving average, 4.2% below its 50-day moving average, and 5.4% 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 8.7% on September 29.

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) — $194.4 billion
  • General Motors (GM) — $49.2 billion
  • Tesla Motors (TSLA) — $29.8 billion

Latest news on Ford Motor

In a press release on September 29, 2016, Bloomberg reported that “Ford Motor Co. hired Rajendra Rao from 3M Co. as chief executive officer of the Smart Mobility unit the automaker created to make a business of providing transportation services.”

It also added that “Rao, who will be based in Palo Alto, California, will lead businesses including City Solutions, the Chariot shuttle service and the Greenfield Labs business-model incubator. At 3M, he developed business models with a focus on smart cities, wearables and digital wellness, Ford said in a statement Thursday. The native of Bangalore, India, reports to Jim Hackett, chairman of Ford Smart Mobility LLC.”

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Ford’s sales in August 2016

  • Ford Motor reported total vehicle sales of more than 214,000 units, a fall of 8.4% from August 2015.
  • The Ford brand reported sales of just more than 205,000 units, a fall of 9.0% from August 2015. The vehicles sold include the Focus, Explorer, Escape, and F-Series trucks. Their sales fell 27.9%, 15.5%, 2.8%, and 6.1%, respectively. Sales of transit trucks rose 16.9%.
  • The Lincoln brand reported sales of 9,243 units, including MKZ automobiles. Sales have risen 7.0% from August 2015. MKZ and SUV (sport utility vehicle) sales rose 7.1% and 49.9%, respectively.

The following is a breakdown of Ford’s sales by type:

  • cars reported sales of ~52,000 units, a fall of 25.4% from August 2015
  • SUVs reported sales of nearly 74,000 units, a fall of 0.84% from August 2015
  • trucks reported sales of more than 88,000 units, a fall of 1.6% from August 2015

Ford reported sales of 126,834 units in the Asia-Pacific region, a rise of 22% from August 2015.

Sales in China were as follows:

  • Ford and its joint ventures reported sales of 96,450 units, a rise of 22.0% from August 2015
  • Changan Ford Automobile (CAF) reported sales of 75,228 units, a rise of 26% from August 2015, and sales of 578,947 units YTD, a rise of 13.0% YoY (year-over-year)
  • Jiangling Motor (JMC) reported sales of 19,951 units, a rise of 16% from August 2015, and sales of 159,213 units YTD, a fall of 3% YoY

Next, we’ll take a look at The Coca-Cola Company (KO).

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