Post by ScottR@KTP on Feb 12, 2010 16:43:29 GMT -5
Ford Passing Toyota in U.S. Market
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Companies:
o Ford Motor Co.
o Toyota Motor Corp.
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F 11.12 -0.06
Chart for FORD MOTOR CO
TM 77.05 +1.05
Chart for TOYOTA MTR CP ADS
{"s" : "f,tm","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Zacks Equity Research, On Friday February 12, 2010, 1:25 pm EST
According to a report by auto research website Edmunds.com, Ford Motor Co. (NYSE: F - News) has become the second-biggest automaker in the U.S. behind General Motors. With this, Ford has overtaken Toyota Motor Corp. (NYSE: TM - News) in the wake of Toyota's damaging parade of recalls.
According to the website, Toyota is expected to lose more than 1 percentage point of the U.S. market share to hit 16.45% in 2010 due to its global recall of 8.5 million vehicles related to their problem accelerator gas pedals and braking systems. Meanwhile, Ford is expected to achieve 16.57% of the market in the year following General Motors with 18.12% of the market.
Toyota’s recent series of recalls have been highly focused and criticized, eroding the image of the automaker. Its latest recall included highly popular vehicles such as the 2010 Prius hybrid. News has recently leaked that the U.S. regulators are also reviewing dozens of complaints about potential steering problems in new Toyota Corolla vehicles.
Toyota loyalists are now having second thoughts prior to purchasing their vehicles. For years, Toyota has been praised for maintaining both superior quality and high resale value.
In January, Toyota lost more volume than any other automaker in the industry, due to the recall. Sales fell 16% to 98,796 vehicles, which comprised all the recalled models -- Camry, Corolla and Avalon cars and the Matrix hatchback, the Tundra pickup, RAV4 crossover and SUVs including Sequoia and Highlander.
It was the first time since February 1998 that Toyota's monthly U.S. sales fell below 100,000 vehicles. Car sales decreased 10% to 60,634 units while light truck sales slashed 24% to 38,162 units.
Kelley Blue Book -- the largest automotive vehicle valuation company in the U.S., which considered Toyota as the best brand for resale value two months ago -- has stated that resale value is now worth $200 to $500 less per recalled models (a decline of 1%–3%).
The Edmunds.com estimated resale or trade-in values of Toyota vehicles to fall up to 10% in the short term. Edmunds' estimate for the trade-in value of a 2009 Toyota Camry has fallen by 4%–6% to $13,967 while the 2009 Toyota Corolla has declined 6% to $11,233.
On the other hand, Ford steered ahead by posting a sales gain of 26.4% to 116,534 units in January. The automaker bagged a 16% market share during the month, up from 14% in January 2009.
Ford’s car sales rose 43%, crossovers 20%, SUVs 8% and trucks and vans 14%. Sales of Ford, Lincoln and Mercury branded cars rose 24.1% to 112,406 vehicles. Despite being up for sale, Volvo clocked a 41.9% rise in sales to 4,128 vehicles.
The company, which was on the verge of a bankruptcy in the middle of 2009, has turned in a profit of $8 million (excluding special items) in the year, driven by favorable net pricing, structural cost reductions, net gains on debt reduction actions and strong Ford Credit results. In fact, this was the company's first annual profit since 2005.
FORD MTR CO DEL (F): Read the Full Research Report
TOYOTA MOTOR CORP (TM): Read the Full Research Report
Zacks Investment Research
zacks
o
Buzz up! 68
o Print
*
Companies:
o Ford Motor Co.
o Toyota Motor Corp.
Related Quotes
Symbol Price Change
F 11.12 -0.06
Chart for FORD MOTOR CO
TM 77.05 +1.05
Chart for TOYOTA MTR CP ADS
{"s" : "f,tm","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Zacks Equity Research, On Friday February 12, 2010, 1:25 pm EST
According to a report by auto research website Edmunds.com, Ford Motor Co. (NYSE: F - News) has become the second-biggest automaker in the U.S. behind General Motors. With this, Ford has overtaken Toyota Motor Corp. (NYSE: TM - News) in the wake of Toyota's damaging parade of recalls.
According to the website, Toyota is expected to lose more than 1 percentage point of the U.S. market share to hit 16.45% in 2010 due to its global recall of 8.5 million vehicles related to their problem accelerator gas pedals and braking systems. Meanwhile, Ford is expected to achieve 16.57% of the market in the year following General Motors with 18.12% of the market.
Toyota’s recent series of recalls have been highly focused and criticized, eroding the image of the automaker. Its latest recall included highly popular vehicles such as the 2010 Prius hybrid. News has recently leaked that the U.S. regulators are also reviewing dozens of complaints about potential steering problems in new Toyota Corolla vehicles.
Toyota loyalists are now having second thoughts prior to purchasing their vehicles. For years, Toyota has been praised for maintaining both superior quality and high resale value.
In January, Toyota lost more volume than any other automaker in the industry, due to the recall. Sales fell 16% to 98,796 vehicles, which comprised all the recalled models -- Camry, Corolla and Avalon cars and the Matrix hatchback, the Tundra pickup, RAV4 crossover and SUVs including Sequoia and Highlander.
It was the first time since February 1998 that Toyota's monthly U.S. sales fell below 100,000 vehicles. Car sales decreased 10% to 60,634 units while light truck sales slashed 24% to 38,162 units.
Kelley Blue Book -- the largest automotive vehicle valuation company in the U.S., which considered Toyota as the best brand for resale value two months ago -- has stated that resale value is now worth $200 to $500 less per recalled models (a decline of 1%–3%).
The Edmunds.com estimated resale or trade-in values of Toyota vehicles to fall up to 10% in the short term. Edmunds' estimate for the trade-in value of a 2009 Toyota Camry has fallen by 4%–6% to $13,967 while the 2009 Toyota Corolla has declined 6% to $11,233.
On the other hand, Ford steered ahead by posting a sales gain of 26.4% to 116,534 units in January. The automaker bagged a 16% market share during the month, up from 14% in January 2009.
Ford’s car sales rose 43%, crossovers 20%, SUVs 8% and trucks and vans 14%. Sales of Ford, Lincoln and Mercury branded cars rose 24.1% to 112,406 vehicles. Despite being up for sale, Volvo clocked a 41.9% rise in sales to 4,128 vehicles.
The company, which was on the verge of a bankruptcy in the middle of 2009, has turned in a profit of $8 million (excluding special items) in the year, driven by favorable net pricing, structural cost reductions, net gains on debt reduction actions and strong Ford Credit results. In fact, this was the company's first annual profit since 2005.
FORD MTR CO DEL (F): Read the Full Research Report
TOYOTA MOTOR CORP (TM): Read the Full Research Report
Zacks Investment Research