Ford Motor Company (F): Top Dog in Consumer Loyalty

GM has been slower to launch new vehicles and redesigns after its government bailout led to a cash crunch. That’s about to change as GM continues to improve financially, and new models begin to roll out during GM’s strategy to redesign, refresh, or replace almost 90% of its models by 2016. I believe that the jump in consumer loyalty reflects the early stages of success from that strategy. In addition to its regular lineup, GM’s luxury Cadillac line reported its best year-to-date sales increase since 1976.

In addition to the surge in sales, roughly 70% of Cadillac ATS buyers are purchasing their very first Cadillac. That’s a huge percentage, and represents a chunk of market share stolen from other brands — a huge win for Cadillac, and a large reason for Cadillac’s jump in consumer loyalty.

Bottom line
In the first quarter, the one from which Polk has derived its information, something took place that hasn’t happened in almost two decades; all three of Detroit’s automakers gained market share in the U.S. It’s clear that consumers are reacting favorably to all of the newly designed vehicles coming off their production lines.

There are still hurdles for these automakers to jump over, such as reversing huge losses in Europe, but this could be a great time to buy into the automotive rebound. As consumer loyalty, vehicle quality, and market share continue to increase Ford’s top line revenues and bottom line, profits should follow. The future looks very bright for Ford Motor Company (NYSE:F) investors, and it could warrant a position in your portfolio.

The article Ford Stock: Top Dog in Consumer Loyalty originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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