For over 100 years, Ford (NYSE:F) has been innovating in the
automotive world. In its early days, the company revolutionized production
through the efficiency of assembly lines. Now, there is strong competition both
domestically and internationally. To stay ahead Ford must embrace new
technologies.
While some considered it a mistake, the switch to aluminum
in Ford’s F-150 shows that the company is forward thinking. GM continues to
mock them for this in advertisements, but aluminum allows Ford to reduce the
vehicle’s weight and therefore improve fuel economy. Pretty soon, GM and other competitors
will find that they are lagging behind. In addition, Ford is starting to get
serious with electric cars and autonomous vehicles. They are not leading the
industry in these areas at the moment, but they are pushing strongly ahead.
Over the last few years, the market has not been kind to Ford.
Share prices climbed above $17 in 2013 and 2014, but slowly declined to below
$11 last month. They are on the way back up, but the stock still seems
undervalued. This presents an opportunity to pick up a great company for a
great price, and collect a 5%+ dividend along the way!
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