Tomahawk, WI 01/06/2014 (BasicsMedia) – Ford Motor Company (NYSE:F) had long considered China a growth market. The company is spending about $4.9 billion to boost its manufacturing capacity in the market. When the management decided on this decision to double output capacity in China, many investors were left wondering whether the company had a chance to succeed in there.

But even with questions hanging around, the CEO Alan Mulally had China in the bigger picture. If some investors doubted the chances of Ford Motor Company (NYSE:F) in China, the latest company’s sales data is the answer.

In 2013, Ford Motor Company (NYSE:F) had its best year in China in many years. The sales were up 49 percent and it climbed to the fifth position in the order of largest foreign automakers in the market.

In the month of December along sales rose by 35 percent over the same month last year. In overall, Ford Motor Company (NYSE:F) sold more than 935,810 cars in China in 2013. This dwarfed Toyota which previously finished with among the largest foreign automakers in the market. Toyota sold about 917,500 units last year, realizing a small gain in sales of 9.2 percent.

The good performance registered by Ford Motor Company (NYSE:F) in China in 2013 is reason enough why the ongoing manufacturing expansion in the market is justified. However, why the company is making all efforts to ensure that it capture the largest share of the Chinese auto market, it helps to look at its opportunities and challenges in international operations.


Investors who have held this stock a little longer understand that Ford Motor Company (NYSE:F) has come along way into its present profit status. The company’s opportunities can be seen in many international regions. To begin with, China’s auto market is expected to increase significantly and this offers opportunity for Ford Motor Company (NYSE:F) alongside other automakers that already have presence in the market.

The company’s effort to penetrate the passenger and pickup market in China is also a good strategy that is expected to boost its sales. In China, Ford Motor Company (NYSE:F) is also partnering with strategic players to boost sales figures. These are part of the developments which culminated in the just reported record sales for last year in China.

Beyond China, Ford Motor Company (NYSE:F) is also succeeding in Africa, Middle East, Latin America and India which rank high among its priority global markets. The company is expected to boost production in these regions, introduce new vehicles as well as upgrade existing platforms. Moreover, the company is finding good partners to boost its sales.

As company, Ford Motor Company (NYSE:F) has tried to bring down its operating cost. It has adjusted its workforce numbers and negotiated deals with suppliers to ensure that its sales earn good margins. In this sense, the company’s ongoing global expansion is expected to help it realize even better profits.


As much as there are a lot of opportunities, Ford Motor Company (NYSE:F) is also faced with challenges which investors should be aware of. The company’s Europe operations are still under pressure. The pressure is also seen in the U.S. where the company is still recovering from the shock of the financial crisis. The company’s late entry into international markets such as China is also giving hard time catching up with competition.

 All in all, Ford Motor Company (NYSE:F) is good bet for investors looking for a growth and safer investment stock in the auto industry.

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