Thread: Smaller Cars Lift Ford’s Profit to $2.55 Billion

Smaller Cars Lift Ford’s Profit to $2.55 Billion

By NICK BUNKLEY
Published: April 26, 2011

DEARBORN, Mich. — The Ford Motor Company reported on Tuesday its largest first-quarter profit since 1998, even as sales shift to smaller, more fuel-efficient cars.

"As someone who's driven Saabs for 20 years, I'm fairly sure my next car will be an American, and it will be a Ford. I'm sure Henry would be proud."
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Ford earned $2.55 billion in the quarter, or 61 cents a share, up from $2.09 billion, or 50 cents, in the period a year earlier. The results should ease some concerns that the company was losing momentum after fourth-quarter earnings missed expectations, though quickly rising gasoline prices and earthquake damage to auto parts plants in Japan still pose a threat to Ford and the rest of the industry.

Shares of Ford, which had fallen 17 percent in the last three months, were up as much as 3 percent on Tuesday.

“Our team delivered a great quarter, with solid growth and improvements in all regions,â€

A lot of Fords cars in this range are actually made in Mexico but I see it as a good thing because they are competing with Japanese and Korean made cars. Mexicans are more likely to spend income on American made components and consumer goods than are Japanese, Koreans and Chinese.

Increased fuel efficiency

Ford Motor Company announced it will accelerate its plans to produce more fuel-efficient cars, changing both its North American manufacturing plans and its lineup of vehicles available in the United States. In terms of North American manufacturing, the company will convert three existing truck and sport utility vehicle (SUV) plants for small car production, with the first conversion starting in December 2010 at its Michigan Truck Plant. In addition, Ford's assembly plants near Mexico City, Mexico, and in Louisville, Kentucky, will convert from pickups and SUVs to small cars, including the Ford Fiesta, by 2011.

http://en.wikipedia.org/wiki/Ford_Motor_Company