SHANGHAI, Feb 23 (Reuters) - U.S. auto giant Ford (nyse: F - news - people) plans to build a second car plant in eastern China to serve the booming area around the country's commercial hub. Ford, which aims to invest more than $1 billion in the world's fastest growing major car market in coming years, signed an agreement on Saturday that secured it rights to use land in Nanjing, a three-hour drive from China's richest city. The new plant would grant Ford access to the bustling eastern provinces as well as better talent pools as it strives to compete against entrenched rivals General Motors Corp (nyse: GM - news - people) and Volkswagen AG <VOWG.DE> in the coastal markets. "But the new plant is not just closer to the main markets -- the labour pool is superior too," Gu added. Until now, most industry observers had focused on Ford's ambitious expansion at its maiden manufacturing base in the country, in the far-flung city of Chongqing. Ford said last year it would expand output seven-fold at its joint venture with domestic player Chongqing Changan Automobile Co Ltd <200625.SZ> <000625.SZ>. The Nanjing plant would also be run by that venture, Changan Ford Automobile Corp Ltd, company executives said. Car sales in China smashed the one million-unit barrier in 2002 for the first time and exceeded two million in 2003. Car sales are expected to jump another 40 percent this year as the economy races ahead, putting money in the pockets of consumers. FORD SOLD ITS FIRST MODEL T ON THE MAINLAND IN 1913 before World War II cut short the company's China dream. Its current facility, in the landlocked western city of Chongqing, rolled out its first cars only in January 2003, years behind the competition. The company, which rolled out its Maverick and Mondeo models in China last year, plans to launch a new model each year on the mainland and eventually sell a full range of cars in the country. Its other worldwide brands include Lincoln, Mercury, Land Rover, Volvo, Jaguar and Aston Martin. Mazda Motor Corp <7261.T>, of which Ford holds 33 percent, has said it would cooperate with the U.S. auto maker as it maps out a strategy for China. Changan Ford spokeswoman Marina Guo declined to say if the Nanjing plant would be built in concert with Mazda, but said they were always looking for opportunities to work with them.
why is their success not showing in their price performance? We were looking at a nice breakout pattern just a week ago, now it is questionable whether we can even hold support at 14. I want to believe, but getting a little concerned.
Buy DCX & HM, Hold TM. Sell F & GM by: the_2nd_wind 02/22/04 05:03 am Msg: 28297 of 28299
--------------- Toyota DCX Honda Ford GM price per share 66.0 -- 47.60 20.90 14.2 49.0 value per share 84.1 -- 81.70 62.70 00.0 00.0 (valuepro baseline) value/price---- 1.27 ---- 1.72 03.00 00.0 0.00
Numerical values for Ford and GM are not listed because their intrinsic values are negative.
Among the Top Three global automakers by market and intrinsic value DCX and Honda are the best investment values and Ford and GM are short candidates ar best. Ford and GM will consolidate within 10 years to survive and compete with Toyota, DaimlerChrysler and Honda to the disadvantage of their share holders.