Ford Revs Up Profits
Eat your heart out, Government Motors.
Ford Motor Company – the only one of America’s “Big Three” automakers to refuse government bailout money – defied Wall Street experts by posting a billion dollar profit this week.
The company also said it would be “solidly profitable” by 2011 – although a deal with the United Auto Workers union that would have brought the company’s labor costs in line with government-run GM and Italian-owned Chrysler fell through, causing some to question the rosy forecasts.
And of course, the administration of President Barack Obama will back the unions to the hilt, meaning Ford is essentially competing with one hand tied behind its back.
Still, Ford’s turnaround – compared to the struggles of the bailout recipients – is remarkable.
Analysts were expecting close to a half-billion dollar loss, but the leaner, meaner Detroit automaker beat expectations for the second quarter in a row.
For those of you keeping score at home, GM and Chrysler took an estimated $65 billion in bailout money over the past year – and that’s not including the $3 billion “Cash for Clunkers” bailout.
Comments
By Come On Down on November 3rd, 2009 at 9:48 am
If Ford wants to save on costs, maybe they should move their operations to a “Right to Work” state like South Carolina.
By Rick on November 3rd, 2009 at 9:50 am
Now wait a damn minute….you can’t be saying that the free market works? How dare these greedy nocount yankees actually have a profit. Why, the next thing ya know, they’ll want to move to South Carolina to partake of the Wal-Mart greeter employee pool. The UAW had better get their butt boy Barack on Fords butt and change the dynamics…why, in this day and age…a profit. Shame on you Ford for providing a return to the investors and a job to the union employees. (Ya’ll come on down to South Carolina, build a plant, and enjoy a right to work environment fer a bit)Why, next thing ya know, you’ll want to provide a quality product to your customers thereby expanding market share instead of providing a place for indigent slugs to hang about and whine about their lot in life. How dare you thrive while so many are lining up for handouts. Hang on, gotta work up some more indignation……
By vicupstate on November 3rd, 2009 at 9:52 am
Didn’t Ford received loan guarantees from the Feds as part of the bailout? Ford was in better shape to begin with than GM and Chrysler, so it should come as no surprise that would continue in the short term. If GM and Chrylser had both tanked, there is certainly reason to believe than Ford as the lone domestic automaker would have been negatively affected as well.
By follydude on November 3rd, 2009 at 10:39 am
not to rain on the parade, but Ford slashed costs by $1 billion in the 3rd quarter.
Ford has a heavier debt load than GM & Chrysler and the expectations are that unless drastic concessions are made with the UAW, such solvency won’t been seen in the future.
how many more factories can you close and how many more workers can you cut?
By countryboy on November 3rd, 2009 at 10:44 am
I own a new Ford and after the bailout won’t ever own another GM or Chrysler product. And I strongly agree with “come on down”… Ford should move operations to a right to work state and tell the union to go pound sand (just not on our coast line). Unions bear a significant part of the blame for our current economic mess, along with liberals in Congress.
By Liberty For Me on November 3rd, 2009 at 9:27 pm
I will never own a Government motore car.I guess it will be Toyota for me.At least they are being built in the south without unions crooks
By No Way! on November 3rd, 2009 at 10:08 pm
Again, Obama is involved in something that fails, nothing new there! Government Motors (GM) will continue to fail under Obama and the car czar. I am pretty sure that Obama couldn’t open the hood of a car if he had to. I am willing to bet he is asking the UAW to put pressure on Ford to fail. I agree with the idea that Ford should move to a right to work state = South Carolina.