Ford Motor Co. (F) recently announced the redesigning of the Louisville Assembly Plant. The company made an investment of $600 million for the renovation of the plant which commenced operation in 1955. From the 1990s until 2010, Ford Explorer was produced in the plant. After the transformation, fuel efficient vehicles like Escape will be manufactured.
The Louisville plant happens to be the most flexible domestic assembly plant having the capacity of manufacturing six different models simultaneously. It can also produce small, medium as well as large vehicles.
Ford also announced the launch of the new Escape, which will be offered for sale this month. The new Escape will ultimately pave the way to the ultra-competitive small SUV category for the company.
Ford has already created 1,800 hourly jobs at the Louisville facility and plans to add 1,300 more with the beginning of the plant’s third shift. The vacancies were filled by the present workers of Ford in Louisville and also from places where the plants are either closed or decreased in size. The company expects that hourly employment in its Louisville plant will be boosted to 4,200 by the end of the year.
Michigan-based Ford Motor is one of the largest automobile producers worldwide. It is the global producer of trucks and automobiles, as well as car and equipment rental and financing. Although U.S. is Ford’s primary selling ground, Europe, South America, and the Asia-Pacific constitute the Company’s other major markets. The company’s key competitors include Chrysler Group LLC, General Motors Company (GM), Honda Motor Co. (HMC), Nissan Motor Co. (NSANY) and Toyota Motor Corporation (TM).
Currently, Ford retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have a long-term (more than 6 months) Neutral recommendation on the stock.
FORD MOTOR CO (F): Free Stock Analysis Report
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