Ford has announced it has returned to profit, after successful cost cutting measures, increased market share and the US ‘Cash for Clunkers’ scheme.
The firm posted a $1billion (£612million) profit in the third quarter of 2009 and it said it would be “solidly profitable” by 2011.
Ford was the only one of the Detroit Three not to enter Chapter 11 bankruptcy protection earlier this year. Its North American arm was profitable for the first time since the first quarter of 2005, which was the main reason behind Ford’s overall return to profit.
Lewis Booth, Ford’s chief financial officer, told the Financial Times: “The biggest improvements that we made were made at the beginning of the year. We’re still saying we’ll be solidly profitable in 2011 with positive cash flow.”
Ford’s cost cutting hopes could be hit, however, by unions voting against planned reforms. Ford has proposed to ban strikes until 2015, combine job classifications and freeze the pay of new workers.
GM and Chrysler have agreed similar deals with their workforces and Ford argue that it needs a similar deal to prevent it being left behind its competitors with higher costs.
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Re: Ford returns to profit
Watch the union workers destroy this good news. Even the union reps want to agree. Proposals have been agreed in Canada amongst unions, their memebrs and Ford.
What Ford did was admirable - sulf sustainment and sharp management meant no government bailout. I bet Ford must be thinking why bother going through all that effort!
Re: Ford returns to profit
Just as the American Fusion came on par/better on customer satisfaction surveys with Camry/Accord, while as hybrid provides better fuel economy than a Camry hybrid (and way better to drive according to journalists).
Fantastic job, Mr Mulally.
Re: Ford returns to profit
at last some good news for the car industry.Ford would be wise now to retain Volvo.otherwise Volvo are doomed i fear