Ford Motor Co.’s (NYSE:F) China sales declined 2.6% year over year to 88,248 vehicles in May 2016. However, the automaker witnessed a 5% year-over-year increase in sales in the world’s largest automobile market to 479,542 vehicles in the first five months of 2016.
Ford’s passenger car joint venture, Changan Ford Automobile (“CAF”) recorded a 0.5% year-over-year decline in vehicle sales to 67,055 units in May 2016. CAF sales surged 11% year over year to 370,268 units in the first five months of 2016.
Ford's commercial vehicle investment in China, Jiangling Motors Corporation (“JMC”), sold 19,692 vehicles in May 2016. Notably, sales declined 4% from the figure recorded in May 2015. Further, JMC sales plunged 9% year over year to 102,163 vehicles in the first five months of 2016.
In Oct 2015, Ford announced its plan to invest nearly 11.4 billion yuan ($1.8 billion) for research and development in China over the next five years. The automaker has been trying to enhance its sales in the Chinese market by modifying its vehicles to meet consumer preferences. As a result, it has gained significant market share over the last few years.
Ford will also expand its portfolio of hybrid, plug-in hybrid and electric vehicles in the nation over the next few years. This year, the company is slated to launch C-MAX Energi, a plug-in hybrid, and the Mondeo conventional hybrid in China.
Ford currently carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks include Autoliv, Inc. (NYSE:ALV) , Oshkosh Corp. (NYSE:OSK) and Superior Industries International, Inc. (NYSE:SUP) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
FORD MOTOR CO (F): Free Stock Analysis Report
AUTOLIV INC (ALV): Free Stock Analysis Report
SUPERIOR INDS (SUP): Free Stock Analysis Report
OSHKOSH CORP (OSK): Free Stock Analysis Report
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