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Ford posted a $2.1 billion profit for this quarter, beating market expectations by a full year despite a lull in the new vehicle market. Ford has undergone a series of cost-cutting measures, including plant closures and layoffs, but has also introduced a torrent of new product in nearly every segment.
Ford hasn’t earned $2 billion profit since 2004, when the company sold 17 million vehicles. Expectations for this year include sales of fewer than 12 million cars and trucks. Ford’s strong performance has been attributed to a number of factors. New products like the Fiesta, Mustang, Edge and Fusion have been extremely well received by the automotive press and well as consumers. Sales of the full-size Taurus are up 96 percent from the previous generation. Ford’s image has also remained strong, as it avoided taking government loans (unlike rivals GM and Chrysler), and avoided the quality problems that have plagued Toyota.
However, Ford’s executive chairman told the New York Times that the success of the company was attributable to its own strengths, not the weaknesses of its competitors.
“I don’t know how much it really helped because it’s all about the product,” Mr. Ford told reporters after a speech in Detroit this month. “People will come into our showrooms but if they don’t see anything they like, they’ll go elsewhere.”