Ford, benefiting from turnaround and rivals’ stumbles, posts US$2.6B profit
Kelly Martinelli works on a pre-production 2012 Ford Focus at the Michigan Assembly Plant in Wayne, Mich., Thursday, July 22, 2010. Ford Motor co. said Friday, July 23, 2010, it posted net income of $2.6 billion in the second quarter as it continued to grab sales from rivals in a slowly recovering U.S. market.(AP Photo/Carlos Osorio)
DEARBORN, Mich. – Four years ago, Ford mortgaged everything down to the blue oval logo to save itself. now, even as Americans remain skittish about the economy, it’s reaping big rewards and stealing business from stumbling rivals.
Ford said Friday that it made US$2.6 billion from April through June, its fifth straight quarterly profit. The company, which reported record losses last year, now predicts it will end 2011 with more cash than debt.
With its two longtime Detroit rivals still finding their way after spending time in bankruptcy last year, Ford, which never took government bailout money, extended its success story.
President and CEO Alan Mulally said the company is ahead of where he thought it would be in its turnaround. it now sells the most popular pickup truck in the U.S., the F-Series, and the most popular crossover SUV, the Escape.
“Our performance this year gives us great confidence going forward,” he said.
In the past year, Ford has gained a bigger share of the American market, the equivalent of about 154,000 cars and trucks. Rivals Toyota, General Motors and Chrysler have all lost ground.
Toyota stumbled this year because of safety-related recalls. GM and Chrysler’s precarious financial positions had some people shying away from their cars for fear they would not be able to find service.
Mulally, a tough manager masked by a boyish face and gee-whiz demeanour, joined Ford in October 2006, a year into a turnaround plan that called for closing plants, cutting jobs and dropping some of its models.
He removed obstacles, put new managers in place and forced feuding parts of the company to work together. He had cards printed out for every employee exhorting people to work together and accelerate development of new products — and carries one in his own pocket. In weekly management meetings, he holds people accountable but also greets success with applause.
Michael Robinet, an analyst for the consulting firm IHS Automotive, credits Mulally with motivating the work force. but he said the biggest reason for Ford’s success is a complete overhaul of its factory and sales strategies.
When the company was losing billions last decade, it kept cranking out cars and trucks even if they weren’t selling, because high labour costs made it too expensive to shut down production.
But late in 2008, the United Auto Workers union gave up a provision known as the jobs bank, in which automakers had to pay laid-off workers even if their plants were closed.
Ford, benefiting from turnaround and rivals’ stumbles, posts US$2.6B profit
This is disturbing!
Kagan Says ‘Governmental Motive’ is Proper Focus in First Amendment Cases, Backs Limits on Speech That Can ‘Harm’
Applause for President Obama's Supreme Court nominee Elena Kagan at the White House on Monday, May 10, 2010. (AP Photo/Susan Walsh)(CNSNews.com) – Supreme Court nominee Elena Kagan said the high court should be focused on ferreting out improper governmental motives when deciding First Amendment cases, arguing that the government’s reasons for restricting free speech were what mattered most and not necessarily the effect of those restrictions on speech.
Photo from AP Photo: Washington Capitals center Mathieu Perreault (85) controls the puck from … http://www.daylife.com/photo…