Ford Motor Company (F)’s Fusion and Escape Are Driving Success

Undervalued?
I think both General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) are undervalued today, for different reasons. General Motors is the No. 2 global automaker in sales and is making a concerted effort to take the top spot. It’s refreshing a ton of models to further boost its top-line sales that aren’t optimized because of old age – it owns the world’s oldest vehicle portfolio.

Ford on the other hand can’t yet compete with General Motors Company (NYSE:GM) on top-line-sales revenue; it doesn’t sell enough vehicles. What Ford has done, though, is even more important: It has created economies of scale and is running more efficiently than its competitors – taking home more of each revenue dollar. It’s U.S. margins for the first quarter were 11%, which is extremely strong.

Bottom line
If you were to combine the top-line sales of General Motors Company (NYSE:GM) and bottom-line efficiencies of Ford Motor Company (NYSE:F), the resulting fictional company would crush competitors all over the globe. Each one is striving to become that company by fixing its respective weakness. If Ford is going to accomplish this success it will need winners similar to the Fusion and Escape across its entire vehicle line.

The article Ford’s Fusion and Escape Are Driving Success originally appeared on Fool.com and is written by Daniel Miller.

Motley 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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