April 29, 2010
Ford: No Bailout Translates Into Big Profits
How happy are Americans that Ford didn’t take government bailout money? Apparently, happy enough to be spending their hard-earned cash on Fords–for the first quarter of 2010, the Blue Oval is posting a $2 billion profit, and has in fact sold 56% more cars and trucks in the first 3 months of 2010 than it sold a year ago. Their sales are so strong that they even have the best market share since 1977.
While GM is airing commercials that celebrate the fact it’s repaid it’s loans to the U.S and Canadian governments, Ford just wants to be sure Americans remember who didn’t need a taxpayer line of credit in the first place.
In a conference call on Tuesday, Ford CEO Alan Mulally refrained from pointing fingers at the recipients of government bailout money among the Big Three, but said that Ford “respected the shareholders, we respected the bondholders, we respected everybody that had invested in Ford, and now we’re creating a very strong business. I think that that resonates very well with our consumers.” It’s clear that, amid the publicity surrounding GM’s early payoff of its own loans, Ford is rushing to remind taxpayers that they’re the ones who didn’t need a line of credit in the first place.
It’s true that Ford has been hitting it out of the park with its product offerings lately, including the upcoming electric Focus and the return of the Mustang 5.0. However, it remains to be seen how our domestic auto industry will move forward from the recession and ensuing bailout drama, and which of the Big Three will emerge as stronger companies in the aftermath.
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