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Cheap gas has Ford investors nervous over 2015 F-150

Gasoline in the US continues its weeks-long descent with prices down about 13 cents a gallon over last week to $2.544, which is lower by around 69 cents/gallon from this time last year, according to the US Energy Information Administration. Many drivers are welcoming the lower bills at the gas station as a fantastic holiday gift, but Ford investors are somewhat spooked over the potential sales implications for the 2015 F-150. Market analyst Rod Lache of Deutsche Bank recently downgraded Ford's stock from a buy to hold, according to TheDetroitBureau.com, and his report to investors may have played a part in a drop in the company's share price. Lache praised the truck's powertrain and lightweight technology, but wrote, "We question whether consumers will pay the price for this content with $2-$3 gas," in his report, according to the website. Whether buyers actually turn away from the F-150 is mostly speculative at this point because it only recently began production. With around 700 pounds of weight loss thanks in parts to its new aluminum parts, the latest Ford pickup offers up to 26 miles per gallon on the highway, plus segment-best payload and towing ratings. Prices are up somewhat in part to pay for additional standard features, though. Still, any further dip in Ford's stock is bad news this year. According to TheDetroitBureau.com, the company's shares are down about 7.5 percent this year. On December 15, the price fell to $14.28, the lowest since November 10. Related Video:

Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

Ford making Fusion production moves to challenge Camry on volume

The Ford Fusion may already beat the Toyota Camry in terms of models offered, transaction price and sales increase so far this year, but if the Fusion wants to make a run at the title of best-selling car in the US, Bloomberg reminds us that volume is key. Opening a second production line at the Flat Rock, MI assembly plant will reportedly allow Ford to produce around 350,000 Fusions annually, which compares Toyota's ability to crank out 475,000 Camrys and Honda's capacity to build around 450,000 Accords.
For the Fusion, that's an extra 100,000 units compared to the car's current pace, and the article adds that the Fusion is "Ford's best shot" to regain the passenger car sales crown - a title it (or any other US automaker, for that matter) hasn't held since the mid-1990s. Despite hiccups with recalls and fuel economy numbers, the Ford Fusion is still red hot when it comes to sales. Fusion sales are up 13 percent so far this year (compared to a 0.6 percent decrease for Camry), and its average transaction price of $26,343 is about $2,300 more than its rival from Toyota.
The Fusion's popularity has helped Ford improve its sales in California; the Dearborn-based automaker has a market share of 18 percent in the state, which is just a fraction of a percentage behind Honda. And this popularity should continue as Ford ups Fusion production and expands the model lineup even further for 2014 with a new 1.5-liter EcoBoost engine soon to become an option.