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
Nathanael Baker is the Managing Editor of EnergyBoom. He has researched and reported on the issues of renewable energy, sustainability, and climate change for over two years. He has provided research to the New York Times and The Economist, as well as being published on different media outlets including, The Energy Collective.
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