Tuesday, April 29, 2008

Ford back to profits

Ford’s Chief Executive Officer Alan Mulally arrived in the US troubled car manufacturer from Boeing Co. in September 2006 with great urgency. Apparently, it didn’t take him too long to prove himself as a result-bringing leader after Ford reported a second profitable quarter, this time by $100 million.

Alan Mulally is now just a breath away from his goal to returning Ford to profitability next year after the sum of $15.3 billion consecutive losses in 2006 and 2007, proving all analysts expecting Ford to continue its downfall, fundamentally wrong. And because for many, numbers can sometimes do the talking more effectively, Ford’s first quarter net income is plus 5 cents a share compared with a loss of $282 million, or 15 cents, in last year's first quarter.

Maybe difficult to comprehend, nevertheless true, it is for the North American division why Ford plunged into losses for two years now while Ford Europe and other units have reported profits. The company has already cut 46,300 jobs in North America the past two years and in 2007 negotiated a new labor contract to reduce its U.S. labor expenses.

Anyway, the truth is that Ford is expected back on the top, a position well deserved for the world’s 3rd car manufacturer and to be honest I have already eyed upon the new Ford Mondeo Titanium X and left astonished.


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