Business

Ford's profit
by Barbora Misakova

We are living in the times where the big ones have problems as well. Economy crisis we are hearing about so often is not finicky at all and so the problems came also to the car industry. Famous names such as Ford, Chrysler or General Motors had to face them as well, and from the beginning it looked really tragically. Now when the situation is slowly calming down only some of these companies are able to go on and fight with their new challenges and also competitors. From the named ones probably only The Ford Motor Company knows what to do. This American multinational corporation based in Dearborn, Michigan was founded in 1903 by Henri Ford and it has been in continuous famil! y control for over 100 years. Today it represents the fourth-largest automaker in the world. In 2006 the automaker reported the largest annual loss in its history which represented $12.7 billion. Return of profitability was estimated on 2009, not sooner. Today the Ford is making money again. In the third quarter the Ford’s profit reached nearly $1 billion. Even though the Ford’s situation is far better than in GM or Chrysler, they still didn’t win. It is truth that Ford’s cars are popular, but there is still one big exclamation mark hanging above. Consumer confidence is still low and unemployment high and these two factors usually have the biggest influence on the demand. What is more, the company’s debt remains a concern. Total amount of Ford’s debt is $26.9 billion. Company is also unable to cut its labor costs.

related story (sgx15793): http://news.yahoo.com/s/ap/20091102/ap_on_bi_ge/us_earns_for...

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 3:12 PM