Ford Bets Big on Small Engines

Before you go, we thought you'd like these...
Before you go close icon

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and research analyst Cat Baab-Muguira discuss topics around the investing world.

Car manufacturers like Ford are focusing on opportunities to boost fuel efficiency without sacrificing performance along the way, and the trend in the past has been a push toward electric or hybrid vehicles. However, Ford seems to be investing big in another game-breaking technology -- smaller engines. How exactly do smaller engines push the envelope? After all, GM introduced the tiny Geo concept years ago without much success. Well, in Ford's case, the Blue Oval is doubling down on advancements in turbocharged and direct-fuel-injection engines. They might be small, and perhaps carry a higher price tag, but the performance remains.

Obviously, Ford's not betting big on one technology, but investing in several to drive future fuel efficiency gains. Even better, the company recently reinstated its dividend and has done a remarkable job paying down its debt. But Ford's stock price is down over 20% over the past year. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.

The article Ford Bets Big on Small Engines originally appeared on Fool.com.

Isaac Pino and Catherine Baab-Muguira have no positions in the stocks mentioned above. The Motley Fool owns shares of Ford and Tesla Motors. Motley Fool newsletter services recommend Ford, General Motors, and Tesla Motors . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners