Ford is the only stock related to the automobile that I will approve right now

Jim Cramer, of CNBC, said Monday that Ford's stock was at the beginning of a multi-year return, thanks to its turnaround plan that is showing signs of success.

He gave his approval to General Manager Jim Hackett, who has been running the company for almost two years.

"The return of Ford is the people who really work, it's really a business, and I think it's just beginning," said the host of "Mad Money." "That's the title I'm ready to approve right now, because Ford understands that the auto industry stinks, and they're doing everything in their power to reduce their exposure to the worst aspects of the industry, while working like the fabulous and wonderful F-150 … the best truck in the world. "

After selling less than $ 10 a share for much of the past nine months, Ford is coming out of nature, cutting costs and focusing on profitable operations, Cramer said. The changes are needed to address cyclical and secular industry-wide declines related to ridesharing services and changes in car buying habits, he said.

Earlier this year, Ford ended the production of underperforming vehicles in Europe, Latin America and Russia to restructure its international operations. In March, the automaker named Tim Stone, a veteran of the Amazon, chief financial officer at a time when the auto sector is increasingly tied to the technological space. Last month, the company invested $ 500 million in electric vehicle manufacturer Rivian to assemble a new battery-powered electric vehicle, the host said.

Six months ago, analysts were worried about the dividend and the future of Ford. The company has put these worries to rest, said Cramer.

"Ford no longer wants to build cars everywhere, no matter what the cost – it does not want a single global strategy for all cars," Cramer said. "Instead, Ford only makes vehicles where it can generate real profits, otherwise nothing is worth it to be manufactured, and that's why I think this title is ridiculously cheap with a profit 7 times higher with an abundant yield of 5.8%. "

Ford's shares plunged about 0.40% during the session. Cramer said his 4 cent decline was incredible given the state of the auto market and trade tensions between the US and China that disrupted Wall Street on Monday.

According to Cramer, Ford plans to fire 10% of its workforce in China. Car sales in the country fell by 37% in 2018. Although his plan for China is unclear, profitability has begun to turn, he said.

The title has risen more than 35% in 2019, but it's still down 25% over the last five years, Cramer noted. The share price fell several years and hit a low of $ 7.41 last December, after reaching $ 17 per share in 2014.

Ford's stock fell 6% in January after announcing preliminary results lower than Wall Street estimates. But the street later applauded the company's full-quarter results, Cramer said. Bob Shanks, then CFO, illustrated the strength of the company's balance sheet, he added.

"I think Hackett did a great job in keeping the poor results of 2018 and then projecting confidence that the company would be able to change things in 2019," he said. "Jim Hackett is finally realizing his turnaround plans, creating a leaner, leaner and more focused company that can generate higher profits even when sales are declining.. "

In April, Ford had said it was earning 44 cents a share, surpassing Wall Street expectations of 27 cents, for a $ 40.3 billion business in the first quarter of 2019.

Disclosure: The Cramer Charitable Trust holds shares in Amazon.