Ford (NYSE:F) has had an uneven ride this year. It went through fluctuating stock prices and faced significant downfalls in its stock prices a couple of times. In addition to this, its CEO retired and Ford is probable to have a 2 billion decrease in its profits before tax this year. It wasn’t unexpected that Ford would not have a smooth ride in 2014, but it is expected that 2015 would be a better year for Ford (NYSE:F) and the biggest question regarding the assumption Ford’s Market share.
Ford has two major markets, the U.S and the Chinese market with the greatest downfall in terms of market share in the U.S amongst all its competitors for the year 2014. There are two major reasons behind this decrease in sales. The first is that when Ford started to produce the aluminum-bodied 2015 F-150 in one of the plants of its F series, it lost sales of about 90,000 units. From the year 2011 Ford has been able to increase sales of its F-Series by just about 14 % each year.
But in the year 2014 Ford faced a 1.4% decrease in its sales compared to its previous year sales. Ford’s 2015 F-150 is thought to be groundbreaking as it’s a fuel efficient, full sized truck but it will have to post large sales in order to regain the lost market share of Ford. The second reason for the decline in market share is that Ford (NYSE:F) focused on the rental fleet sales which provided it with a very small margin. Now when the demand for the rented cars declined Ford’s sales are affected and this is the reason why in November, Ford had a decrease of 1.2 % in its sales
Now let’s come to the Chinese market. Ford (NYSE:F) although entered late in the Chinese market, in the year 2012, but it had a rapid growth and is soon expected to catch up with its competitors. Ford has been having double digit growth since it entered the Chinese market and will have to continue to do so if it wants to achieve the goal of 6% market share in China by the year 2015. There is another milestone for which Ford is eyeing for and that is to become the third best-selling foreign automobile maker in China after surpassing Nissan.
This seems possible as in the month of October the sales gap between the companies was of only 76,914 units and as Ford had a growth of 22% in the month of October compared to Nissan’s growth of 3.5% in the same month in China, it is expected that soon Ford (NYSE:F) will surpass Nissan. It is expected that Ford (NYSE:F) will have more sales in the year 2015 but it should also try to regain its loss of 90 points in the U.S stock market and improve its sales performance to reach the 6% market share goal in the Chinese market.