Ford doesn’t expect to turn a profit before 2011, but company CEO Alan Mulally foresees a market turnaround by the end of the year. Mulally says global car and truck sales have begun to stabilize and could show the first signs of recovery by the third quarter.
Mulally made his predictions at Ford’s recent shareholder meeting, according to The Detroit News. “We are very encouraged,” he said. “We’re going to see the start of this turnaround in the third and the fourth quarter.”
Ford CFO Lewis Booth added that government scrappage programs will have a large impact on the industry’s turnaround. Several countries around the global have already launched such programs with great success. Although incentives vary from country to country, all give consumers a cash bonus for turning in old vehicles for new ones with better fuel economy. The U.S. said to be on the verge of announcing its own cash-for-clunkers program.
Ford remains the only of the Detroit Three not to take a government loan, which could aid the Michigan automaker in its return to profitability.
