Ford earns $2.7B in 2009, first profit in 4 years
DEARBORN, Mich. (AP) - Defying economic conditions that sent its U.S. rivals into bankruptcy court, Ford Motor Co. clawed its way to a $2.7 billion profit in 2009 and expects to stay in the black in 2010. It was the automaker’s first annual profit in four years.
Ford’s full-year revenue of $118.3 billion fell 14 percent from 2008, but the Dearborn-based automaker benefited from $5.1 billion in cuts to manufacturing, engineering and advertising and a $1.3 billion profit at Ford Credit. It gained market share in North and South America and Europe despite the worst U.S. sales climate in 30 years. Share in Asia was flat.
Ford CEO Alan Mulally said 2009 was “pivotal” but Ford has work to do.
“Ford’s transformation remains a work in progress and is far from complete,” he said in a conference call with analysts and media. Back in 2006, Ford was considered the weakest of the three domestic automakers.
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Ford earns $2.7B in 2009, first profit in 4 years
Maybe Ford really DOES have a Better Idea! Remember that slogan?
GM and Chrysler took federal bailout money. Have they shown a profit? Of any kind? I can’t find any data that says PROFIT made. But I did find this, a promise of profit.
DETROIT (CNNMoney.com) — General Motors Chairman and CEO Ed Whitacre promised Monday that taxpayers will make a profit on the $50 billion that Treasury has sunk into the company over the past 13 months. SOURCE
A $50 BILLION bailout from the government, and so far, we get a promise from GM?? That’s about all we’re going to get from Chrysler too I’m afraid.
On June 10, 2009, the sale of most of Chrysler assets to “New Chrysler”, formally known as Chrysler Group LLC was completed. The federal government financed the deal with US$6.6 billion in financing, paid to the “Old Chrysler”, formally called Old Carco LLC. The transfer does not include eight manufacturing locations, nor many parcels of real estate, nor equipment leases. Contracts with 789 U.S. auto dealerships, who are being dropped, were not transferred. SOURCE
Some sources are saying that IF Chrysler is able to show a profit at all, it will likely be sometime in 2010, if it happens. According to Chrysler CEO Sergio Marchionne, “Chrysler can be profitable this year if its sells 1.1 million vehicles in the U.S. and 1.65 million worldwide.”
Those sales targets represent an 18% improvement over Chrysler’s 2009 U.S. sales and a 27% jump from last year’s global total, both tall orders given that most industry leaders say they expect U.S. sales to rise about 10% this year to 11.5 million. SOURCE
I’m not a business major, but even I know that those sales figures are unrealistic in todays down economy. Unemployment is at least 10%, that’s what the government is willing to admit to. If the truth were told, those figures are several points lower that the actual number that makes the news. Americans aren’t going to buy enough Chrysler automobiles to cause that needed spike in sales. I know that I personally wouldn’t buy a Chrysler product.
I have to wonder, if Ford is doing so well, while GM and Chrysler are still struggling, where do you suppose Ford would be if they had taken federal bailout funds? I am guessing they would still be in financial trouble with no end in sight! Bailouts were handouts, on a massive scale, and handouts rarely help the recipient past some small, but immediate relief.
Previously, Ford was only willing to say it would be “solidly profitable” in 2011. It now predicts a profit - excluding special items - for 2010 because of signs of economic growth, lower costs and its ability to get higher prices for its vehicles, Chief Financial Officer Lewis Booth said. The 2010 Ford Fusion midsize sedan is selling for $2,000 more than the 2009 model because Ford is doing less discounting and customers are upgrading options. SOURCE
Ford is going to make it, and they have made it on their own. Hard work, American ingenuity, a desire to succeed and the will to make it happen, that’s what has saved Ford, and lack thereof is why GM and Chrysler are still treading water, and could still sink!
The bailouts have been a waste of time, money and effort, all from an administration that seeks to control, yes, I DID say CONTROL, they want to control America and ALL of Her people. If the car companies, as well as banks and AIG couldn’t do what Ford did, you know, just a little thing like SAVE their companies, what’s to say that IF these companies do come back, they won’t go right back to the same business practices that put them in the hole the 1st time?
Chrysler has been bailed out more than once you know. This is an ongoing effort, bailing out the Chrysler Motors Corp. See these stories from 1979 and 1983. Maybe they need to take a real close look at HOW they do business. Just sayin’…
I’ll ride a bicycle before I’d buy a car from GM. They hopped in bed with the muslim scum so let them and the union eat shit and die.
It makes me glad I’m a retiree of Ford and not GM or Chrysler. Ford Motor Co will be around for a long time to come-I HOPE.
A man who has never worked a day in his life or run a business fired GM’s CEO and chose a new one… a guy who doesn’t know diddly squat about making and marketing cars!!! I worked several years for GM both as a production worker and in IT when I went to work for EDS. I can tell you GM sold their soul to the devil and the devil sold them out to the UAW!!!! The UAW is responsible for the inability of car companies to compete and for the collective demise of the American car companies . All the corrupt union does is get thieves and drunks back on at the expense of the employees that work and encourage laziness. I have no use for them.
I think the reason Ford is doing well is the fact they broke the UAW’s backside, and kept them operating within the realm of reason, long ago. Obozo saw to it the UAW got a payoff (at GM and Chrysler) and that is why you won’t see profits for the companies that the government took over. The only thing more corrupt than Government, is the Unions.
GM is taking the heat for too much expansion in models. Platform sharing for the sake of platform sharing across each and every line isn’t and hasn’t helped GM for some time. GM was and is too slow to react to developing trends. Further, no one wants a hybrid Escalade or Suburban. The new Chevy Malibu is a good car; the Buick LaCrosse is a good car, and the Chevrolet Corvette a budget supercar of unparalleled value, whose ZR1 can run with Ferraris, Lambos and Maseratis.
The rest are passable but — today — passable won’t win.
The Chevy Aveo is a complete turd. Pickup trucks and SUVs are no longer going to save GM. The 2010 Impala is now a downscale Malibu — bass ackwards. The HHR is interesting but its interior is not well thought-out. The Colorado is a loser as is the Cobalt, with the exception of the SS which is NO LONGER MADE. The Camaro has a nice exterior but, again, the interior is poor. The Avalanche is completely unnecessary. The Traverse is not selling and the Equinox doesn’t get the mpg indicated. Consumer Reports that GM and Chrysler vehicles are the LEAST reliable.
I’ll make only one point about Chrysler. I sat in a Chrysler 300, the Dodge Charger and the Dodge Magnum. They each have the IDENTICAL interior and the IDENTICAL dashboard. They obviously share the same platform, but this is the HEIGHT of laziness.
Quality — or LACK thereof — was the killer in this deal.
BZ
I drive a ford f150 265000 miles and still going strong,will more than likely buy another one.
Think of it? The taxpayers gave GM 50 Billion dollars and even with that infusion of money, they can’t show a profit. Face it, most of the money went to the union.
If I buy a new car, it’s going to be a Ford. I like the Challenger R/T as you have to take a second look at it to make sure it’s not a 70 Challenger R/T but I won’t buy one. I couldn’t buy a car from a company that took bailout money. Besides, I’ve got a Mustang GT sitting in my garage and two Fords in the driveway.
BobF: if I had to get a “killer” American Pony Car, I’d try to find any Ford Bullitt. Just love that green color and the mags and the exclusivity. Also, the new Mustang GT just got top honors from Car & Driver against the Challenger and Camaro.
BZ
What a difference a year and a half makes. GM was recovering, and Ford looked like it was about to go up in smoke. How ironic that the bailed out companies wallow in fail while Ford is returning to profitability.
Bloviating Zeppelin is very correct. Too many brands, and too much platform sharing. Why have SAAB and Saturn on the same platforms as the others? Both brands had followings, and had their own uniqueness. Brand engineering both were a waste, and ruined both.
Ford, on the other hand, quietly updated their car lines. The Fusion is great. My wife has one, and it is rock solid. Good quality and reliability. The new Focus is also reported to be quite good as well.
Kudos to Ford. While I’ve been a life-long GM guy, those days are over.
BZ, those Bullitt’s are nice. They didn’t produce a lot of them and they have a look to themselves. For 2011, Ford is bringing back the 5.0 for the GT. It’s going to be rated around 410 hp.
When I went into the dealership last June to buy my truck, I told the salesman I was there because they didn’t take bailout money. His response: “You’d be surprised how many people have walked in and said the exact same thing!”
Yep, you’re right. Ford definitely had a better idea. 😀
Next year it is a ford for me. GMC all my life and my parents, et al-now it is buy American buy Ford. Even just bought a ford tractor
Have a nice day Mr. Obama