North America has been a bright spot for Ford Motors (NYSE:F) in 2012. Sales were up 4.7% in the U.S. and its F-series continued to be the highest selling pickup for the 36th year in the running. Its model refreshments such as the Fusion and the Escape generally drew positive responses from the industry and the consensus seems to be that the automaker is making better, more stylish and fuel efficient vehicles.
With General Motors (NYSE:GM) debuting the new Silverado and Sierra last month and F-Series alone accounting for 30% of Ford’s total American sales, there was no way the automaker was going to take this segment lightly.  At the Detroit Auto Week, Ford took this opportunity to showcase its 2015 concept F-150 called the Atlas. The pickups will be fitted with the EcoBoost engines and will be more fuel efficient than the previous ones. Ford is also looking to boost the mileage of the new versions by reducing the total weight through the usage of lighter materials such as aluminium and carbon-fiber. 
We estimate Ford’s broader segment of trucks contribute about 28% to the the company’s stock value.
Lincoln Gets A Makeover
Lincoln is currently languishing at the eighth spot in the American luxury car market. Ford has made its intention of reinvigorating the Lincoln brand no secret. It plans to do so by introducing seven new or refreshed models in the next four years (including a new MKZ sedan). It has also increased its marketing spend with the company buying an ad spot in Super Bowl. At the Detroit Auto Week, it showcased its new MKC model, a luxury crossover. 
Part of the reason why Lincoln’s standing have fallen over the years is because Ford focused too much on Aston Martin, Jaguar, Land Rover and Volvo in the preceding years. Now that these brands have been sold off, the automaker can focus solely on re-establishing the Lincoln brand. Although generally low on volumes, the luxury vehicles usually have higher margins and thus a resurgence of the brand could add a significant amount of cash to Ford’s profits.
We have a $13 price estimate for Ford, which is about 5% lower than the current market price.Notes: