$1 Billion Dollar profit posted by Ford
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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Columbia, South Carolina, United States