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$1 Billion Dollar profit posted by Ford

by albertacowpoke | November 2, 2009 at 12:54 pm

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The only North American Automaker not to take a government bailout has posted it's first profit in nearly a year.

Ford Motor Company has turned the tide by cutting manufacturing costs and closing plants.

Just this weekend Ford reached a deal with the Canadian Autoworkers Union, which was ratified over the weekend. The deal essentially freezes wages and cuts benefits, while it has workers contribute to others previously financed by the Company.

The Canadian Ford employees agreed to the deal with a guarantee that no more plants would be closed in Canada, except for two already on the chopping block. The Union which saw the light, regarding rising manufacturing costs, due to benefits and the rising Canadian Dollar, recommended ratification to the members at large.

While the profit is still below last years, this is a good sign for a turnabout for Ford. Is this another sign that the economy is on the rebound?

Ford posted a third-quarter profit on Monday of nearly $1 billion, its first quarterly profit in more than a year, beating Wall Street expectations.

Its North American operation posted its first profits since 2005.

"Our third-quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," Ford's president and chief executive, Alan Mulally, said in a statement. "While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger."

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a211423

at 13:38 on November 2nd, 2009

This is a good example of a leading manufacterer, unions, and employees coming to grips with the economy and making adjustments. Still, one billion is a lot of money even less than last year, and I realize they are in the car business to make a profit for their investors. (The moneyed rich we spoke of yesterday.) But at least everyone came to the table on this, and all parties are to be commended. This is the kind of creativity that is needed in this economy.

politisite

at 15:17 on November 2nd, 2009

No Bailout.. you mean business can survive w/out the Bush/Obama bailouts. I thought government was our savior? Guess not eh?

albertacowpoke

at 15:40 on November 2nd, 2009

Ford has also started to produce their more fuel efficient European models into the North American Market.

sara star

at 20:19 on November 2nd, 2009

How come the other Ford NP front page story says they did get a bailout?

Currently, due to the bailouts, Ford is the only one of the Big Three that's still publicly traded.

albertacowpoke

at 20:46 on November 2nd, 2009

I think the message in the other story is trying to point out that Chrysler and GM received bailouts. Ford is not and this is the reason they are still publicly trading.