Report: Ford to report $2.6B second-quarter profit
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Joined: Jun 2002
Posts: 163
From: Tulsa,OK
Report: Ford to report $2.6B second-quarter profit
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Joined: Jul 2002
Posts: 470
From: Wichita, KS
Impressive especially considering the economy is still not doing that well and with 9% unemployment they can sell enough cars to make that sort of profit. Ford is certainly on a roll with greats products on every level.
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Joined: Mar 2007
Posts: 1,897
From: Greenville, SC
Wohoo! Frickin' AWESOME!
I agree with the comments in the link. If this keeps up, Ford is going to have the damn union on their back again trying to suck up the profits, once again, leaving nothing for new product design and for when times aren't good. No one ever seems to think about that...
I agree with the comments in the link. If this keeps up, Ford is going to have the damn union on their back again trying to suck up the profits, once again, leaving nothing for new product design and for when times aren't good. No one ever seems to think about that...
Last edited by Silverado C-10; Jul 24, 2010 at 12:58 AM.
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Joined: Mar 2001
Posts: 13,713
From: The Golden State
You know, I got into it with a couple of people here when I pointed out that Ford was going to become a strong financial player. These folks kept yapping something about Ford being morgaged to the teeth and GM was in far better shape simply because they had no debt.
Once again:
1. Ford cut massive amounds in the cost to manufacture cars and trucks.
2. Ford cut massive time from product development while increasing quality and all but elminating recalls.
3. Ford has built itself to become more profitable making far less vehicles than they did in mid decade... if sales grow greatly, Ford will become even far more profitable.
4. Ford has massive cash reserves, an extraordinary line of credit, and even loans they haven't used. They are also generating large amounts of cash.
5. The more Ford makes, the greater the value of the company, and the smaller the percentage of their debt versus their value and cash reserves.
6. This goes on long enough and Ford will never have to pay back everything they owe. They simply give shares of the company (after it shows a pattern of consistant profitability). That way Ford keeps the cash and effectively settles their debt for far less (as a percentage of their value) than they would if they paid cash.
Chrysler last year broke even despite selling up to 40% less vehicles than it did before the recession.
Chrysler is developing a series of new vehicles with no spending on the most expensive part of a vehicle (the chassis-architecture) thank to using Fiat's new chassis and the existing (and fully paid off) LX vehicles.
Chrysler's problem in recent years was in not having enough money to fully develop quality new products, NOT breaking even... or even making money.
If Chrysler can break even selling just enough vehicles to keep the lights on, and Chrysler makes money selling relatively old vehicles now that the public (and maybe some of the naysayers here) realizes Chrysler isn't about to implode any day, just imagine what will happen when Chrysler does replace it's entire lineup over the next 2 years?
The 3 US automakers are profitable again. I think it will last this time.
Even GM has REAL business people running it now.
Once again:
1. Ford cut massive amounds in the cost to manufacture cars and trucks.
2. Ford cut massive time from product development while increasing quality and all but elminating recalls.
3. Ford has built itself to become more profitable making far less vehicles than they did in mid decade... if sales grow greatly, Ford will become even far more profitable.
4. Ford has massive cash reserves, an extraordinary line of credit, and even loans they haven't used. They are also generating large amounts of cash.
5. The more Ford makes, the greater the value of the company, and the smaller the percentage of their debt versus their value and cash reserves.
6. This goes on long enough and Ford will never have to pay back everything they owe. They simply give shares of the company (after it shows a pattern of consistant profitability). That way Ford keeps the cash and effectively settles their debt for far less (as a percentage of their value) than they would if they paid cash.
Chrysler last year broke even despite selling up to 40% less vehicles than it did before the recession.
Chrysler is developing a series of new vehicles with no spending on the most expensive part of a vehicle (the chassis-architecture) thank to using Fiat's new chassis and the existing (and fully paid off) LX vehicles.
Chrysler's problem in recent years was in not having enough money to fully develop quality new products, NOT breaking even... or even making money.
If Chrysler can break even selling just enough vehicles to keep the lights on, and Chrysler makes money selling relatively old vehicles now that the public (and maybe some of the naysayers here) realizes Chrysler isn't about to implode any day, just imagine what will happen when Chrysler does replace it's entire lineup over the next 2 years?
The 3 US automakers are profitable again. I think it will last this time.
Even GM has REAL business people running it now.
Registered User
Joined: Apr 2005
Posts: 824
From: North of Cincy
Yes I do. I never bought into that though. Ford a large global company. Sure, North American supplies may have been tight for a short time frame but with a global reach, one can get supplies.
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