NEW YORK (TheStreet) -- "It's too early to tell," Jim Farley, Ford's (F) newly appointed president of Europe, Middle East and Africa, said about how the impact of the Takata (TKTDF) airbag recall will affect the company. He told TheStreet TV that Ford is working with the National Highway Traffic Safety Administration to resolve the problem.
The company will act quickly to resolve the issues, Farley told TheStreet's Ruben Ramirez at the Los Angeles Auto Show.
Many are wondering when Europe will start to pay dividends for Ford. "We have a lot of work to do," Farley said. But he noted that the Ford team continues to do a great job and the company's new products are really resonating with Europeans.
The new models have helped Ford to boost its market share in the region. Europe is also important because that's where the automaker develops its small car models and commercial vehicles, he explained.
One of the most successful vehicle categories around the globe is the SUV -- it's red hot right now, and represents about one in five purchases, Farley explained.
In the U.S., about one in every three vehicle sales is an SUV these days, and Ford is the leading seller in that category for the country. China's SUV sales are "exploding" right now, he added.
SUV sales have hit a tipping point, where drivers no longer need a specific reason to own one. Many drivers enjoy the flexibility and space associated with the bigger rides. Sales have also accelerated for SUVs now that fuel efficiency has increased. Some SUVs get close to 30 miles per gallon on the highway, making them practical and appealing for many drivers, he said.
Auto sales have had a "robust" start for the fourth quarter and will likely pick up pace going into the holiday season, Farley concluded.
-- Written by Bret Kenwell
TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORD MOTOR CO (F) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: F Ratings Report