Taking a forward look, Ford Motor Co. executives say they are confident they can sustain a robust pace of growth over the next couple years, and beyond.
Find out more about what Ford executives think of the automaker.
Ford Motor Co’s message to the world is, “we are a growth company.”
Ford said today its revenues leapt 12% in the third quarter from a fairly healthy base a year ago.
What’s more? Ford executives say they are confident they can sustain a robust pace of growth over the next couple years. Ford is likely to finish 2013 with around 6 million in vehicles sold worldwide – in two or three years Ford expects to be selling 8 million vehicles a year – an implied annual growth rate of roughly 10–15%.
Chief Operating Officer Mark Fields said Thursday he felt good about that prediction, assuming no big financial melt-down.
Ford isn’t a “mature company,” says Chief Financial Officer Bob Shanks, in an exclusive interview. Instead, Ford executives think of the auto maker as a technology company.
“That’s exactly how we see the company internally,” he said. “It certainly is anything but a rust belt industry company from the ‘80s and ‘90s.”
What about Tesla Motors Inc.? The electric luxury car startup led by technology billionaire Elon Musk has a market capitalization of $19.9 billion — roughly 28% of Ford’s $69 billion value — and it has yet to record a full-year profit.
Ford’s push to roll out new products around the globe is part of the revenue expansion. Its portfolio in China is roughly tripling from 2011 to 2015 and it is adding new products in Europe, South America, Russia and the U.S.
Mr. Fields said Ford expects 4% to 5% annual vehicle sales growth for nearly a decade in the global industry. This year, auto makers will sell about 84 million new cars and trucks. That figure will vault over 109 million by 2020, driven mostly by China, but also by the increasing motorization of smaller countries in Africa and Asia.