Shifting Market Forces To Favor Ford, Analysts Believe
|   Thursday, August 14, 2014
As the Baby Boomer generation ages and moves back to city centers that are rapidly being redeveloped and gaining value and as younger buyers – the Millenial generation – comes of age and has more disposable income in its control, the automotive economy is changing and the winner is likely to be Ford.

This is the opinion of Wall Street analysts who, today, took Ford's stock from the "hold" category to the "buy" category at a price level of around $22, according to Stifel, a Wall Street analysis firm.


When you look at Ford's strong midsized lineup, led by the number-one selling Fusion, and its new, lighter F-150, a pickup that is better-handling and gets better mileage than ever before, one can see the attraction to buyers. For investors, says news.investors.com (Investors Business Daily) this makes Ford a very positive buy.

The changes coincide with the changing demographics in the market with younger buyers scooping up the Fusion's and F-150 and boomers buying more economical versions of the Fusion and the Ford Focus.

Ford's market analysts put the dart in the center of the bullseye when they began studying the market about three years ago. Apparently they saw the challenges that were going to be imposed by tougher emissions and safety regulations, as well as just how the basic market would be shifting.

For example, Ford's Fusion is available in electric, hybrid and standard models. The electric and hybrid versions make sense for Boomers who are moving back to the city while the standard model with its efficient four- and V-6 and the wide array of product levels and equipment makes sense for the young Millenials who are buying their first family sedans.

Likewise, the new, aluminum-framed F-150 is lighter due to the frame and aluminum body panels, as well as composites and it is attracting its share of attention from the same markets, as it can be equipped with luxury options and four-wheel-drive. Also, the F-150 is offered in Club and Crew Cab models (both five- to six-passenger configurations are available) making it the leader in the truck market.

It took lots of hard work and an investment in the future, even as the automaker went into hock up to its wheel wells, to stave off bankruptcy several years ago while GM and Chrysler accepted a government bailout and Ford remained independent.
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