Behind New Philosophy Ford Posts Best Third-Quarter in 20 Years
Ford Motor Company's surging profits in the third fiscal quarter of 2010 could mark a return to glory for the American automaker, which has been mired in debt.
Although Ford (NYSE: F) was the only American car manufacturer to escape the economic recession without receiving government bailout funds, it had, like its American colleagues, lost a significant piece of its market share to Asian manufacturers and posted a US$14.8 billion loss in 2008.
However, a change in business philosophy has helped produce six straight profit producing quarters, including the most recent quarter which saw Ford generate US$1.7 billion in revenue -- the company's best third quarter in 20 years.
Ford's new business strategy is focused on building better quality cars, while also becoming a leading manufacturer of fuel efficient vehicles. As such, the iconic automaker has declared it wants to be a leader in hybrid and electric vehicle technology.
Ford expects to not only be debt free by 2011 but also cash rich -- currently the company says it has a $20 billion cash cushion. Alan R. Mulally, Ford's chief executive, says the company is embarking on a new era: "We have moved into a new chapter for Ford: building cars and trucks people really want and value, and continuously improving our quality and productivity."
Read the full story at the New York Times: Ford Posts 6th Consecutive Profitable Quarter
Image credit: Ford Motor Company
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