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Ford Motor Company (F)
Ford Puts Focus on Fuel Efficiency
At this time of year, the auto industry gets placed under a microscope as people flock to the big Detroit Auto Show. Investors, reporters, and consumers all become anxious to see what auto manufacturers will unveil for the New Year. During the height of the recession, the future of these manufacturers became very unclear. Some couldn't take the heat and ended up asking for a bailout or filing bankruptcy. However, some were able to go back to the drawing board and deliver products that may lead them back to the top. Ford Motor. Co. is one of those companies that is taking charge and moving forward. What changes has Ford made? Will the company be able to maintain this positive upswing?
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Ford Motor Co. is definitely becoming the auto manufacturer to watch. The company was the only one out of the Big Three that didn't have to rely on taxpayers' money to survive the recession. The offer was made, but fortunately the company didn't have to go down that route. The Cash for Clunkers program helped the company move further away from needing the government's handout. The incentive program was able to boost up the bottom line for many auto manufacturers, but Ford benefited the most. The company actually had to increase production to meet demand for their vehicles during the course of the program. Despite the conclusion of the Cash for Clunkers, Ford has continued to make progress and the results are taking the company to the next level.
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One of the biggest changes Ford has made is shifting its focus to fuel efficiency. As gas prices continue to flirt with record highs, consumers are more focus than ever on stretching out their dollars at the pump. Ford, along with most other manufacturers, understands this. Recently, Ford swept the 2010 North American Car and Truck Awards, marking only the third time in the 17-year history of the award that a single automaker has claimed both titles. Ford also announced that that it will build new hybrid and plug-in electric vehicles at its Michigan plant in 2012. The two new vehicles will round out a portfolio of four new cars and trucks the automaker is planning to equip with alternative fuel technology. Ford has decided to move away from some of its oversized SUVS such as the Excursion, which only got around 12-14 mpg highway and 8-10 mpg city.
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Ford is also placing a lot of bets on its all-new Ford Focus. The company unveiled the car at the auto show on Monday morning. Ford hopes to cash in on U.S. demand for compact cars that is expected to grow 25 percent to 3.4 million units by 2012. In addition to its newly designed suite of vehicles, Ford has unloaded some of its less productive brands such as Aston Martin, Land Rover, and Jaguar. The strategy is to concentrate simply on one brand. Ford's recent moves appear to be the right ones. The world is definitely focused more on energy conservation, so these manufacturers will have to move with the times or get left behind. If Ford keeps delivering products that address the issues facing consumers, then they should have no problem maintaining this positive upswing. Shares of Ford have been charging higher ever since the stock moved above $9.50.
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More Commentary on Ford
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Barnes & Noble launches text rental service - Barnes & Noble Inc. (BKS: Charts, News, Offers) says it's launching a textbook rental program for college students.
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