Posted on 11/02/2009 6:03:56 AM PST by Rummyfan
Ford, the only Detroit automaker to dodge direct government aid and bankruptcy court, surprised investors with net income of nearly $1 billion in the third quarter and forecast a "solidly profitable" 2011. The automaker said Monday earnings were fueled by U.S. market share gains, cost cuts and the Cash for Clunkers program, which drew flocks of buyers to showrooms this summer.
Ford's shares rose 58 cents, or 8.3 percent, to $7.58 in pre-market trading. The latest results signal that Ford's turnaround is on more solid ground. The company lost more than $14.6 billion last year and hasn't posted a full-year profit since 2005. While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments. Dearborn, Mich.-based Ford reported third-quarter net income of $997 million, or 29 cents per share.
(Excerpt) Read more at abcnews.go.com ...
It's almost as if Capitolism works better than fascism. However, the Democrats cannot stand to hear facts that disagree with their world view - so they will put their fingers in their ears, close their eyes and ignore this little bit (actually, only bit) of good news coming from the US Automotive indusry.
Good for them! Take that Government Motors!
I’m not surprised.
The UAW will fix this unfortunate situation.
Won’t last long... remember, the UAW members voted to not accept the contract that the union leadership endorsed. They want MORE MORE MORE...
I’m a Chevy guy, but if I was in the market for a new truck, I doubt seriously I would buy Government Motors.
I think my next car may just be a Ford. I fear that the government may find a way to penalize them, though, either through a “non-bailout receiver’s tax” or a heft surcharge that bailout recipients are somehow exempt from.
“I’m a Chevy guy, but if I was in the market for a new truck, I doubt seriously I would buy Government Motors.”
I’m a Chevy guy too. I still own an old Corvette. I will not buy a new GM product, not for the forseeable future. I do own stock in Ford, and will look at Fords first.
If you understand the first part of that sentence, the second part isn't a "surprise."
Glad to see the only American manufacturer that did not belly up to Obamamobile is doing well.
More likely, they will tax the “obscene profits” of Ford or put such regulation on it that they have to pass the costs onto the consumer and drive customers away.
All because they want their Government Motors program to not fail.
Ford should tell them to go pound sand. There are plenty of jobless people out there ready to step in.
I'll say it again, here is Sarah's VP Candidate.
My auto gnome tells me for quite a while that the H20 Cooler talk has been does this guy have a political future.
Also...
Shame on the UAW.
"If Alan Mulally is ok with his pay so are we". Dumb @$$es. Mulally is akin to a Ted Williams, Joe Dimaggio, and Tiger Woods. These silly rabbits on the line are probably good people, but they are not .350 hitters, they are replace-able and cannot command their pay given the competitve cost structures worldwide. Shame on them for not knowing basic Econ and Accounting....
Unfortunately, that is not an option. Their pants are located in union states - they can't just fire them - by law.
Second, even with the supposed profit, it costs a LOT to move a factory to a right-to-work state, train a whole new work force, and start all over. Far more than ANY creditor is going to give ANY auto maker at this point in the game.
“Won’t last long... remember, the UAW members voted to not accept the contract that the union leadership endorsed. They want MORE MORE MORE...”
I think it is more a matter of they don’t want cut, cut, cut. Normally, I would agree that since the unions tend to sync benefits and pay amongst the auto makers that the union should bite it, but in this case since gm and chrysler are not exactly doing anything free market, the Ford agreement should stand alone. I do find it interesting how aggressive unions are in this crappy economy. The Safeway talks are in a similar boat.
That’s true. But it seems like a reasonable ten- or fifteen- year plan.
I think I would be putting very public plans together to move manufacturing to more business-friendly areas. This would make a good bargaining chip, I would think.
train a whole new work force, and start all over
Might not be that much of a problem as many facing no job would probably move with the company I know if I had that choice I would move with them.
Me, I’ve driven Fords for 30 years.
You have summed it up in one sentence! Look for the Obamoids to find some way to punish Ford for its success. And what does this tell us about the upcoming health care fiasco? I wonder if all those people standing in line to get their kids' flu shots are having second thoughts about putting the government in control of the whole shebang.
I think it just may be time for me to buy my first Ford truck. Just a year ago, the thought would have been unthinkable.
They should abandon Detroit, buy up the Saturn factories in the south at twenty cents on the dollar, and break the unions by any means necessary.
The filthy UAW will be all over this with their greedy little communist hands.
Sorry I did not see your post!
IMO the only surprise is that the Obamaconomy didn't drag Ford down further.
And if rumors are true and it gets the “Eco-Boost” engine, it will get good mileage and be fun. That will drive his socialist butt crazy.
Ford concessions accepted in vote
More on the UAW here...
Bailout Nation Mentality: Ford Workers Reject Further Concessions
The whole idea of collective bargaining over pay by labor is seriously flawed, because it moves factory workers into management and gives them great power to determine their own pay and labor costs. But the problem is that factory workers don't understand much about corporate strategy and the need to be competitive with foreign companies. So effectively moving factory workers into management has had devastating consequences for many companies, including GM. This problem got so bad that Caterpillar had to simply refuse to agree to the UAW's demands for higher pay and endured a long strike before letting the UAW workers return under their previous contract terms. Cat is just fortunate that they don't have much competition from US companies, otherwise the unions would have struck against them to pull market share away from them into other US companies, to put extra pressure on Cat. This is how they always attacked the auto companies, by screwing one company to force it into a bad contract, then going after the other companies for a similar deal.
Congress is bought and paid for by labor unions, who have no business having so much power to manage corporations. If they want to get into management, the unions should start their own companies and see if they can find anyone who wants to invest in those companies.
The White House is also currently bought and paid for by labor unions, and that could end up costing a lot of good American jobs that could move overseas.
Dear Harry:
The embarrassing profits shown by the rogue Ford Motor Company should be taxed as windfall and channeled to the union victims of Ford’s corporate greed. I have directed that legislation be crafted by one of the associations run by Obama’s czars to this effect. Please include the provided language in a non-related bill scheduled for a Friday vote.
Cordially,
Nancy
Every time I hear her talk about “immoral profits” I have to go outside and walk around the block to cool off. If she thinks business profits are immoral then the logical conclusion is that she’s really a Marxist and believes in a state-run communist economic system. And that woman is Speaker of the House?!! How did this happen? People in SF are insane now.
I don’t know about anyone else, but I’m rooting for Ford. It goes far beyond not wanting to buy from Government Motors too.
Capitalism is hands down the best economic system in the world. There’s isn’t a prayer of a chance I would buy from a Fascist business, when there’s a good Capitalist business down the block.
Communism, no! Capitalism, yes!
If anyone thinks I would contribute to Communism being seen as a better bet than Capitalism, they need to think again.
...welcome Chevy guys!....say goodbye to the Govt Motors Dark Side forever....and btw, I too am a Ford stock owner...I’ve owned Ford pick-ups since 1965, but drove Chevy Impalas for 28 years when I was selling on the road....but that’s not why I bought the stock...I bought the stock because I liked their prospects and really admired the fact that they had the balls to go it alone without the government interfering...I’m pulling for them to make even more money in the coming years just to rub it in Obama’s face.
Stonewalls, driving my new F-150 to town today to pick up some bales of straw.
Ford is all I ever bought and that will be my next car in 2011.
Drive the Ford 500. Love it.
Looking forward to driving the new Ford Taurus with 365 HP and all the other goodies it comes with such as laser and warning for blind spot.
I just helped Ford’s Q4 numbers. Have a nice shiny 2010 Mustang GT.
Looked at the new Camaro - and loved it, GM has a winner in that car. It was nice enough I was actually willing to hold my nose and help Government Motors.
But, bottom line, Ford made me a deal I could not pass up.
Chevy refused to match and lost the sale over a difference of less than $1000 on the sale of a $30000 automobile.
And that is the bottom line, Ford did what they needed to do to make the sale and make thier customer happy. Including a direct quote, “You tell us what we need to do to close this sale”. Chevy said “this is our price take it or leave it”
More on the UAW here...
Bailout Nation Mentality: Ford Workers Reject Further Concessions." Amazing the most easily replaced have the biggest mouth.
Good for Ford to show a profit. My problem is why could Ford opt out of a bailout fiat dollars when a bank like Wells Fargo could not. A gun was held to there head to take the money. Why not Ford? What now will the Union do? If the union screws around with Ford, there will be a big outlash against them. About time.
Ford Fiesta (hatchback and sedan models shown here):
Ford Focus ("photochop" of the 2011 model):
No thank you.. Ford, like the others have supported all the leftist garbage I hate...
Those pip-squeek cars are good for nothing but single person commuting. - They can’t carry anything, and they’re basically unsafe because they must share the road with real vehicles (trucks, SUVs, Semi-tractors)
That would almost be true ten years ago, but the current models from Ford of Europe are actually very nice vehicles that are quite safe (remember, European automakers have dramatically improved automotive safety since 1997, when the European New Car Assessment Programme (EuroNCAP) safety tests started). I recent had a chance to sit in one of the Fiesta Movement Ford Fiesta five-door hatchback test cars and was amazed by the amount of interior space considering how small the car is. Indeed, the Fiesta is going to be a HOT seller once the car arrives in dealerships around May 2010.
Spend some time in an impound lot or a wrecking yard, and then tell me how safe these tinfoil balls are.
I’m a fan of Ford products, but realism is a virtue in this area.
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