Ford Motor Company (NYSE:F) finally unveiled its much awaited 2015 Edge, a midsized crossover vehicle that the company hopes will spur sales in the fast growing luxury vehicle segment. It is not every day that CNBC, according to its auto and Airline reporter, Phil Lebeau, talks about a redesigned vehicle, but with the Edge, it had to be an exception.
Ford Motor Company (NYSE:F) unveiled the luxury car at its Dearborn Michigan headquarters as a North American Cross over utility vehicle. According to Mr. Lebeau, Ford stands to enjoy a significant amount of sales with the model.
“Well, they are not going to be selling it in China and Europe, the potential for improved sales worldwide is significant,” he said.
Edge sales in the U.S for the older model, which needed a much needed update has been down by 8%; this is in contrast to the overall industry average that has been up by 4.1%. Edge is set to go on sale sometimes next year. The head of Ford Motor Company (NYSE:F) for America believes the crossover utility vehicles will enjoy improved demand in the U.S despite the concerns of increased gas fuel prices. There is belief that if Gas prices stagnate at the $3.80 and $4 range, then all will be okay without any large spike in terms of car sales.
Joe Hinrichs, Ford’s Executive Vice president said:
“Consumers are adjusting to gas prices in the $3.80 to $4 range as long as we don’t see any major spike. We think consumers will continue to be hot in the crossover vehicle segment.”
Joe Hinrichs believes pressure point will only arise if gas prices spike by up to 75 cents.
Car sales through may arouse some concerns on the part of Ford considering among the three major companies it is the only one that is on the negative at 1.8% with General Motors Company (NYSE:GM)’s sales surging by 2% and Chrysler 12.1% during May. The numbers for sold vehicles during June will be announced next week, and Mr. Lebeau believes sales might reach above 16 million vehicles.
Grisanti Brown & Partners, managed by Christopher C. Grisanti trimmed its stake in Ford Motor Company (NYSE:F) by 45% to 500,595 during the first quarter of 2014. While another hedge fund Covalent Capital Partners, managed by Robert Hockett upped its stake in the company by 11% during the same period and now owns 581,000 shares of the company.