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April 29, 2010

Ford: No Bailout Translates Into Big Profits

By Stephanie Porteus

HotRodHoney

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.

Comments

FRSGUMP
Jun 16, 2010 at 1:16 pm

Ford is the new No.1 as far as I’m concerned. I’ve always prefered them over all the rest. Even my own family members have razzed me over the years for this. I really don’t care tho, because if we were all the same, it would be a boring life. Seems to me that Ford never needed a bailout because they know what they’re doing. GM, I think, is one of the biggest reasons our economic situation is the way it is today.
If there is one thing I could tell the consumer, it would be NOT to ever go with leasing, especially thru GM. Another thing that doesn’t make sense to me is the “Cash Back” advertising. If you are trully going to get it back, then WHY have to give it to start with?
If there was one thing I’d say to all automakers, it would be to lay off with so much plastic and gadgetry. There’s hundreds of old classic vehicles out there, even in scrapyards and you know what?,,,,the doorhandles are still working great. Not like today’s pot-metal pieces. And while you’re at it, bring back some REAL chrome.

Fordguy66
May 1, 2010 at 11:18 pm

Well done Ford. Hell, despite my username, congrats to GM for paying off their loan. Obviously both these companies are doing something right. Now what the hell, Chrysler? I think they need to bring back their old slogan… “If you can cope with the fact that we’re getting our ass handed to us by Ford and GM, you could be Dodge material!” Yea, that just might work.. lol

dragorphan
Apr 30, 2010 at 4:13 am

More sales = more profit and more jobs this is good for Ford and better for America. As for GM paying off the loan early good job as well. What about Mopar have they done anything right yet?

GTwildfire
Apr 29, 2010 at 5:12 pm

I think it’s more than just the refusal of bailout money. Ford’s reputation has taken a major upswing, they did about as good a job as any automaker, ever, in reinventing FORD. Not taking the money helped, no doubt, but it’s definitely not a sole factor in Ford’s recent success.

JoeCool6972
Apr 29, 2010 at 5:10 pm

GO FORD!!!

retroman
Apr 29, 2010 at 11:21 am

Good for Ford. It’s good to see that American manufacturers are doing well again. I think alot of Ford’s recent success is from the management’s ability to think quickly and provide products consumers want. I like how they started shipping stuff over from their European market (like the Fiesta) and sharing alot more in the vehicle line. They’ve really managed well.

Bick66
Apr 29, 2010 at 6:26 am

I agree, good for Ford. I’m happy to see Ford doing well and I think it’s great that GM paid their loan back early. Each of the big 3 are producing better cars these days and I’m proud of all of them, bailout or not.

VeryEvilCrownVic
Apr 29, 2010 at 5:09 am

Good for Ford. It’s nice to hear about an American company making money amidst all the recession talk.

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