There's More to Ford than Meets the Eye
If you haven't you'll probably want to. It takes full advantage of its presidential name connection, which has become a larger part of America's consciousness since the acclaimed motion picture by Steven Spielberg starring Daniel Day-Lewis as Abraham Lincoln.
Just like the brilliance of its captivating new "focus" (which happens to be Ford's best-selling model name) or its exceptional TV commercial, the leadership of Ford Motor (F) has also captured the attention of the investing world in a way this analyst hasn't seen since the heyday of Lee Iacocca at Chrysler.
Hailed as the only American auto company that didn't ask for a government bailout or loans during the Great Financial Disaster of 2008-2009, Ford is considered by many as one of the top turnaround stories of this decade. Under the leadership of its respected CEO, Alan Mulally, the company is in the black and going strong.
Ford Motor operates through two sectors, Automotive and Financial Services. The automotive sector offers vehicles primarily under the Ford and Lincoln brand names. This group markets cars, trucks and parts through retail dealers in North America, and through distributors and dealers internationally.
It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides various after-sale vehicle services and products to retail customers, such as maintenance and light repair, heavy repair, collision repair, vehicle accessories, and extended service contracts.
These lucrative products and services are offered under the Ford Service, Lincoln Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft brand names. The Financial Services sector offers various automotive financing products to and through automotive dealers.
Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust -- enjoy advance notice of every trade, full access to the portfolio, and deep coverage of the latest economic events and market movements.
What's exciting from an investment theme is that all these divisions and segments create multiple income streams that flow down to the bottom line of Ford's diluted quarterly year-over-year earnings. The following one-year price chart illustrates this effectively.F data by YCharts
To expand the accessibility of the luxurious Lincoln brand in Asia, Ford is entertaining the idea of modifying Lincoln models before they go on sale in China next year, according to a Bloomberg report Monday .
This is evidently aimed to meet the tastes of wealthy Chinese consumers who often expect to be chauffeur-driven in their luxury cars. "The brand will come to life in China a little differently than here," Jim Farley, Ford's chief of Lincoln and global marketing, told reporters on Monday at the Detroit Auto Show. "We've made several changes, but we haven't shown the Chinese variations of our products yet."