Ford's headquarters in Dearborn, Michigan. Photo credit: Ford.
Other economic indicators are still sluggish, but new-car sales in the U.S. have roared ahead recently, thanks in part to cheap financing deals spurred by super-low interest rates. Few automakers have benefited more than Ford (F +3.54%), which has posted booming profits -- and Ford stock has recently boomed as well.
Now, though, interest rates are starting to rise. Are the automakers worried? Should Ford shareholders be worried? On the contrary: Ford executives are very glad that rates are rising. While higher interest rates will make car loans a little more expensive, they'll also help Ford by lowering the risk of its pension portfolio.
Say what?
If you're invested in Ford stock, pay attention: Risks surrounding Ford's pension plans may have been holding Ford's stock price back for the last couple of years. In this video, Fool contributor John Rosevear explains what you need to know -- and why today's rising interest rates could turn out to be a boon for Ford shareholders.
