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Ford's F-Series Sales Strong in 2013

Zacks Equity Research

With over 40 days remaining till year end, Ford Motor Co.’s (F) F-Series has already surpassed the full-year 2012 sales of 645,316 trucks. The truck line’s full-year 2013 sales will likely be the highest since 2006.

Ford’s F-Series has recorded monthly sales of over 60,000 in each of the last six months. Sales in October increased 13% year over year to 63,803 trucks. Prior to this, the company witnessed a similar strong sales streak in 2006, when it crossed the 60,000 mark for eight consecutive months.

Despite several launches by competitors, Ford’s truck line enjoys immense popularity. In October, F-Series sales surpassed General Motors Company’s (GM) Chevrolet Silverado by 220,000 units. It even outpaced the combined sales of Silverado and GMC Sierra by 67,000 units. Moreover, in the first 10 months of 2013, F-Series surpassed the sales of Chrysler’s Ram trucks by 330,000 units.

F-Series enjoys strong customer loyalty. The truck line is witnessing sales growth in both the low-end and high-end markets. Ford's F-150 STX value model, which targets the low-end market, comprised 10% of the total F-150 sales in 2013, increasing from 3% in 2012. Meanwhile, the F-Series trucks enjoy over 50% share in the high-end market, according to Ford.

Ford’s F-Series enjoys a substantial market share in the Western markets. California remains the second largest market for the trucks, after Texas, since 2008.

Texas witnessed a 27% growth in sales from 2008 to 2013, due to the growing energy and housing sector. F-Series sales in the upper Midwest and Plains states have expanded rapidly over the last 5 years, mainly due to increasing domestic energy exploration and the progressing renewable energy industry.

Ford currently carries a Zacks Rank #1 (Strong Buy). Other major automobile stocks worth considering are General Motors, Fuji Heavy Industries Ltd. (FUJHY) and Daimler AG (DDAIF). While Daimler is a Zacks Rank #1 stock, Fuji and General Motors carry a Zacks Rank #2 (Buy).

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