Before the U.S. Markets open on Oct 26th, Ford Motor Company (NYSE:$F) will report its second-quarter earnings result. Here are 3 notable factors you should look for.
Ford in China
In August, Ford China was appointed a new leader. Jason Kuo is a veteran American auto industry executive who was born in China. He brings not only significant local market knowledge, but also a shift in Ford China strategy. Therefore, we hope to see whether CEO Jim Hackett outlines Fordès revamped China strategy during his earnings call presentation.
New Fiesta in Europe
In May, Ford introduced an all-new version of its small Fiesta at its giant factory in Cologne, Germany. Four months later, suppliers of the new Fiesta are still very tight, with Fordès European dealers selling off most of their remaining old models. Naturally, shortages of the all-new Fiesta have put a huge dents in Ford’s European sales- especially since the Fiesta is Ford’s best-selling product in Europe. It is therefore important to watch for Ford’s European sales totals in the upcoming report.
Changes in Ford Product Line
Earlier in October, CEO Hackett and other senior Ford executives presented a “strategy update” that outlined several general promises, albeit lacking details. Amongst these grandiose promises, Ford stated that it would make changes to its global product portfolio to boost profitability, shifting its mix of products towards SUVs and away from traditional sedans. Another effort Ford is planning is to step away from the “One Ford” strategy put forth by former CEO Alan Mulally about a decade ago. This strategy called for a single global product line for the Ford Brand. It will be interesting to see whether Hackett provides more details on Ford’s shifting plans during the report.
Featured Image: depositphotos/Krasnevsky
