Ford Motor Company Stock

If you are lucky enough to own a Ford motor company stock you are in possession of something that will provide you with excellent value over the long term. Share prices are certainly down these days thanks to the worldwide recession that has hit the United States Economy very badly, and the automobile industry in particular. However, your shares of the Ford Motor Company will be certain to increase in value in the long run.

From the time the Ford Motor Company was founded in 1903, it has always been at the forefront of technological innovation. This company has always managed to roll out vehicles that the market was glad to buy (the Ford Edsel was a notable and unfortunate exception) and the share price of the company has reflected this consumer confidence. The company, headquartered in

Dearborn, Michigan, first went public in 1956 with the sale of Ford Motor Company common stock at a price of $64.50 per share which was a considerable sum in those days. The stock has always been a popular one with investors since the time it was first traded on the New York Stock Exchange in March that year.

Ford motor company stock has been split six times so far. The first time this happened was in 1962. In 2000, the old Ford motor company stock was replaced with new common stock in keeping with the recapitalization of the company. In addition, investors were also offered shares in Visteon, a spin-off of Ford, to the tune of 0.130933 shares of Visteon stock for every share of Ford motor company stock they were in possession of.

There have been times when the share price of Ford has dropped, and indeed, this is the nature of business since it cannot exist in isolation of the countrywide and worldwide economic situation. The price of Ford motor company stock depends on a variety of factors, most of which are interrelated. Consumer demand is probably the first thing to be considered. There have been times when the company’s profits have been dragged down by a decrease in consumer demand. An increase in competition meant that consumers were demanding greater quality and selection without willing to pay more money. There have been various periods when the sales figures of Ford Motor Company have taken a severe beating because of competition from other US car makers as well as from highly efficient Japanese carmakers.

Ford was compelled to reduce costs in order to handle this problem and keep the Ford motor company stock price on an even keel because revenues had dropped. The company has also had to change its style of doing business in order to keep pace with changing consumer demand. The surge in fuel prices had hit this company very badly at one time because almost fifty percent of its product line consisted of vehicles that were not fuel efficient. Customers quickly shifted to fuel efficient vehicles, leaving Ford with a huge dent in its profits and Ford motor company stock therefore dropped in value.

Ford is putting a lot of effort into ensuring that its vehicles, including trucks and sports utility vehicles, are more fuel efficient than before because this is clearly what the customer wants. It is incorporating a lot of lightweight but strong metals in the engines and bodies of vehicles it manufactures so that they are more fuel efficient than before while still providing the power that customers expect from a Ford pickup truck or SUV.

There is good news for Ford investors because the company’s share price is set to rise, given that it has released news that sales for the month of June 2011 have increased by 14 percent over the same period the previous year. Almost all models across cars, trucks and utilities showed improved sales numbers. It is interesting to note that the newer fuel-efficient trucks have been welcomed quite enthusiastically by the market. Even the large and impressive Ford F-150 SVT Raptor has shown a steady increase in sales figures. This off road / performance pickup truck has a lot of admirers because of its rugged good looks and powerful 6.2-liter, 379-cubic-inch V8 engine even though it is far from being fuel efficient. Dealers are happy to put up a Ford Raptor for sale because they are sure to find a customer for it.

It is therefore very clear that Ford motor company stock continues to offer investors excellent value the same way it has done over the past half century. Going by the way the sales figures have picked up momentum, this seems to be a really good time to pick up the stock. There is no doubt at all that this stock is an American classic and will be favored by Americans for a long time to come.