Tag Archives: Ford

Sustainable Investing, Value Investing & Speculation

Earth from Space

Investing for Sustainable Value – changing the paradigm – is critical – because we only have one earth.

This post suggests that investing in Cree, the Ford Motor Company, GT Advanced Technologies, Lighting Sciences, and Solazyme, are investments in companies that are shifting the paradigm toward sustainability. Investments in Cree, Lighting Sciences and Solazyme appear speculative at this time. Investments in Ford and GT Advanced Technologies appear to be “value” investments with significant margins of safety.

“Sustainable development is that which meets the needs of the present generation without compromising the abilities of future generations to meet their needs.” This canonical definition was offered in “Our Common Future,” a report to the United Nations by the Brundland Commission in 1987. Report here, see also wikipedia. “Sustainable Investing,” according to Krosinsky and Robins, is “an approach to investing driven by the long-term economic, environmental and social risks and opportunities facing the global economy.” Continue reading →

Is Ford Motor Co Sustainable? And is Ford a Value Investment?

Ford Fusion

Ford Fusion, available as a hybrid

Back in October, 2007, I wrote about the Toyota Prius and the GM Hummer in Prius v Hummer, the Battle for the Streets and the Prius v Hummer, the Battle for the Brains. (Spoiler alert – the Prius won). Now I’m thinking about Ford Motor Company. A few years back their tag line was “Ford Has A Better Idea.” That may not be the current tag line, but I think it is the case. I will go further and say that Ford is on the road to being  Sustainable car company, and is a Value Investment.

While Toyota deserves credit for developing the hybrid- the Prius was introduced in 2000 – Ford has an extensive lineup of hybrids and is putting the EcoDrive – which boosts mileage by 20% – on vehicles, from small cars to the F150 truck. And 40% of the F150′s sold today are sold with the EcoDrive engine. Continue reading →

Tipping Point for Gas?

Peter Gosselin, writing in the Business Section of LA Times, Saturday, May 24, 2008, writes that Ford, GM, and Chrysler are in serious trouble because of the price of gasoline. He quotes Robert DiClemente, chief U. S. economist at Citigroup in New York “The economic outlook has been taken hostage by the relentless surge in oil prices.” Gosselin adds that Ford Motor Co announced Thursday, May 22, 2004, that it was abandoning any hope of making a profit this year or next now that sales of its gas-guzzling pickup trucks and Explorers have plunged.

Gosselin and Bill Vlasic, writing in the(Click here) (or here for New York Times home)quote Ford CEO Alan Mulally saying the auto industry has “reached a tipping point” where energy costs were fundamentally changing what kind of vehicles Americans buy.

While Gosselin and Vlasic write that Ford, GM, and Chrysler are in trouble, Toyota and Matsushita Electric are investing US $192 Million / 20 Billion yen to build plants to manufacture batteries for hybrids (Click Here).

You can see this by looking at the stock value of these companies. An investment of $2,000 in Ford and General Motors, on Dec. 24, 1999 would be worth Toyota and Honda would be worth about $540 today, not counting the value of any dividends paid, as both Ford and GM lost 73% of their value. On the other hand, An investment of $2,000 in Toyota and Honda stock on Dec 24, 1999 would be worth about $2,860, not counting any dividend payouts because Toyota increased 11.36% and Honda increased 72.53%. These data can be found on the Google financial pages, (click here).

Date Investment 12/2000 5/2008 % Change
Toyota $1,000.00 $1,113.60 11.36%
Honda $1,000.00 $1,725.30 72.23%
Ford $1,000.00 $274.10 -72.59%
GM $1,000.00 $273.20 -72.68%
       
Toyota & Honda $2,000.00 $2,838.90 41.95%
Ford & GM $2,000.00 $547.30 -72.64%

Mr. Gosselin can be reached at Peter.Gosselin (at) latimes.com

(Please Note that I am not licensed to sell investment advice. This should not be construed as such.  It is just an interesting observation. Note also that I have no investment in any of these securities. I do own a ’99 Chevy Malibu and a ’99 Mercury Sable. My next car will get 45 mpg, which means it will probably be a Prius.)