Ford Motor Company's shares jumped 10% due to it beating revenue loss targets. Originally, Ford was projected to make $24.8 billion, but instead was able to generate $27.2 billion. This represents an $11 billion drop in revenue, less than previously expected. Ford remains on track to become profitable in 2011, after restructuring its entire company, cutting costs and increasing cash-flow.
As a whole, the company is more focused on smaller, more fuel-efficient vehicles, as well as its profitability and bottom-line. Ford's foresight in restructuring and pursuing better vehicles in 2006 allowed it the time to maneuver in the face of one of the most severe recessions in history. While GM and Chrysler are struggling to emerge from Chapter 11, Ford is also enjoying increased consumer confidence and applause because they have yet to tap government funds to stay alive.
"Our underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet," commented Ford CEO Alan Mullaly.
Ford posted a 10.9% drop in car sales in June, and fared much better than GM and Chrysler, whose sales dropped 33% and 42% respectively.
***Are you interested in purchasing a new vehicle this summer, from Ford or another American manufacturer? If so, you should be well aware of the CARS (cash for clunkers) program to see if your trade-in qualifies for a rebate. Also be sure to secure your financing beforehand to get the best car loan rate possible.***
