Tomahawk, WI 11/15/2013 (BasicsMedia) – Ford Motor Company (NYSE:F) has its CEO Alan Mulally for all it is today. The company has been getting a lot of things right and its future looks too bright to view with the naked eye. Well, the Blue Oval company has been able to maintain positive run longer than most its rivals in the U.S. and globally. The F’s success story can be seen in how its small cars like Focus, Fusion and Fiesta have been able to gain market share even in places that it has historically performed dismally. The company’s SUV line is also incredible; it’s paying off sooner than anticipated.

Given what the good executive has done at the U.S. carmaker, he has created a legacy, earned a reputation and gained ranking among CEOs. But there is a story behind this. In 2006 when Mulally came on board to lead one of the biggest U.S. carmakers, Ford, he had “One Ford” plan to turnaround the company. How was that going to be possible when recession was just beginning to take its toll on major corporations? The rest is now history, but what is known is that between 2006 and 2008, the Blue Oval plugged its $30 billion hole in losses and started delivering profits in 2009. This was when its rivals Chrysler and GM were facing baptism of fire in the height of economic slowdown.

The “One Ford” Plan

The “One Ford” plan seems to have built its premise on restructuring the company and making it profitable in the prevailing market demand. It was not going to be easy, but it did happen, it’s happening. It’s still going to happen. However, as much Mulally’s plane has worked so far for the automaker,  there is still much ground to be covered, especially in regard to the company’s vehicle platforms and Europe operations. The CEO is rumored to be planning his exit next year, but the question is whether his successor will be able to carry on with the remainder of the “One Ford” plan.

Currently the company has 15 vehicle platforms, and there is need for consolidation of this number to a much smaller one. The plan mentions 2017 as the year when it expects to cut its platform by six – from 15 currently to 9 by the envisioned year.  Its rival in the U.S. GM is looking at slashing its own to 14 in 2018. The challenge in the plan is attaining 85% global car sales for its core vehicles.  Even more challenging is transforming Europe operations. Ford Europe is still operating in losses and now the company needs to increase its efficiency in the market, perhaps by cutting capacity. In the last quarter Europe resulted in loss of $228 million. Compared to the same quarter the previous year, the region was able to plug the hole by $240 million. And sequentially, it plugged the hole by $120 million. These are commendable improvements. By trimming its capacity in Europe, the company looks at saving more than $500 million each year.

Considering the amount of work that still needs to be done to bring Ford Motor Company (NYSE:F) to the levels that investors can enjoy the juice of their investment, perhaps prevailing on Mulally to remain at the helm for a few more years beyond 2015 would be recommended. As at now, Ford remains a positively looking stock for one to take position in ahead of even better season in the near term.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.