Ford Motor Company had a very good day on Wednesday October 7, and Wall Street celebrated the firm’s achievements by buying up stock heading into market close on Wednesday afternoon. The firm revealed on Wednesday that sales in Europe were up by more than 10 percent. At the same time, fears of union reprisals on its factory lines subsided.
Ford finally gets some good news
While the auto market reels from news of the VW diesel scandal, and what looks like a slow down in both the US and China, Ford Motors will be glad for a reprieve. On Wednesday, after the markets had closed in Europe but before they were finished for the day in New York, the firm said that sales rose by 8 percent year over year in September.
Sales in Europe were the high point. Sales in the continent rose by 10% to 9,778,800 for the first nine months of the year.That puts the firm’s total market share in the region at 8.1 percent. The sales bump appears to be thanks to a rise in sales of the firm’s Mondeo and Focus. Sales of the cars rose 45 percent and 37 percent year over year respectively.
The good news on sales was compounded by a breaking story that a deal had been reached between rival Fiat Chrysler Automobiles NV and Union UAW. Late on Wednesday night it was revealed that the firm had come to terms with the union over working conditions.
That matters to Ford Motor Company because strikes have a way of growing. The UAW in Ford’s Kansas City plant, which makes America’s most widely bought vehicle the F-150, came to terms with the firm on October 4 over conditions.
Auto workers have a huge amount of influence, as might be expected, on the value and future of Ford. Keeping the union happy, whether it be at Ford’s factory or at those ran by Fiat Chrysler, is a key part of the business. Knowing that the firm’s plants are safe from strikes, for the time being at least, is music to the ears of shareholders.
Ford Motor Company stock relieved
Ford Motor Company shares were selling for $14.74 by the time the market closed on Wednesday. That’s an increase of 3.04 percent over their opening price. The upward move will be taken with relief by holders of the stock.
Shares in the firm have been rocky so far this year, rising through the middle of the year to a high of more than $50 before falling sharply to below $30. The shaky US economy, signaled by the jobs report last Friday, and the dodgy data coming out of China, the world’s biggest car buyer, have hurt the firm’s value significantly.
The union lull combined with better sales for Ford across the world will help, but quite a few people bought into the Dearborne, Michigan firm back when shares were selling for $50 or more. It’s going to take a lot of good sales reports to get the firm back there.