Car insurance: Ford returns to profit for first time since 2005
Tuesday, 03 November 2009
Ford, the only major US car company to avoid bankruptcy this year, has returned to profit for the first time since 2005, car insurance customers may be interested to hear.
The company, which has been picking up market share from its bankrupt rivals Chrysler and General Motors, said that its North American operations had reported its first pre-tax operating profit - $1.1billion (£675 million) - since the first quarter of 2008.
"Ford is making tremendous progress despite the prolonged slump in the global economy," said chief executive, Alan Mulally.
"While we still face a challenging road ahead, our transformation plan is working and our underlying business continues to grow stronger."
Mr Mulally refused to give a short-term profit forecast, declining to update guidance for next year, but promised that the company would manage "solid profitability" in 2011.
The turnabout came after the revived demand for its vehicles enabled Ford to avoid some of the deep discounting it previously used to get people into showrooms.
The quarterly profit coincided with the US government's "cash for clunkers" scheme which provided a taxpayer subsidy for drivers who traded in their old vehicle for a more fuel efficient new car.
Posted by Claire Carter
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