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.
05/15, 11:50 AM
posted by:
RaineMan
Well… I guess some optimism can’t hurt… half of this recession is people thinking “Times are bad, I better save my money.” anyways.
But I seriously doubt we will see any measurable recovery until late 2010 at the earliest… though I’m leaning more towards 2012.
05/15, 12:10 PM
posted by:
A4
Yeah Alan, and if I had wheels, I’d be a wagon.
05/15, 12:44 PM
posted by:
Borat
Based on yesterday news of further job losses this optimism is borderline insane. I hope they all right, for my own sake, but realistically I think they fool of kaka as they have been since Earth cooled off.
05/15, 2:36 PM
posted by:
Fleming in Tennessee
He’s pretty much been spot-on thus far….time will tell. Ford is gaining market share month over month while others are not. He’s got the magic touch, and I notice the stock is headed back up again. I’m anxious to hear more about future Mercurys. Mercury just might turn out to be Fords Crown Jewel. This year marks Mercurys 70th Anniversary.
05/15, 4:54 PM
posted by:
Dwide Schrude
I hate to say this but Mercury’s 70th Anniversary should be its last.
05/15, 6:05 PM
posted by:
yarddog82abn
YOU KNOW, 2 YEARS AGO FORD WAS IN A BAD SPOT, TODAY IT SEEMS THEY WILL BE THE ONE’S THAT WILL LEADING THE AMERICAN AUTO INDUSTRY’S TO IT’S NEW BEGINNINGS….
THE GENERAL WILL SURVIVE, AND CHRYSLER WILL LIVE ON, WITH THE NEWS OF TOYOTA SHOWING IT’S WOUNDS OF A BAD ECONOMY, THERE JUST MAYBE A NEW No.1 ON THE TOP OF THE HILL, EVERY GREAT CHAMPIONSHIP TEAM ALWAYS COMES BACK TO DOMINATE….
YOU JUST NEVER KNOW….
05/15, 6:14 PM
posted by:
Blakkarr
If that assessment ring true, then it is good news for GM and CHRYSLER who could use some good news…
05/15, 6:47 PM
posted by:
JakeK66
Well, Mercury has been sort of a bit part for awhile anyway. If the Ford/Lincoln dealers are left seperate, I think Mercury should remain – since it’s only a couple or so models and it really doesn’t hurt anything giving them some volume models, but if Lincoln and Ford dealers merge – then Mercury should get the ax, no question.
05/15, 11:08 PM
posted by:
tyler_is_aero_tt
I hope so. Ford has been putting out some really awesome products lately.
05/16, 10:58 PM
posted by:
Bankruptcy2009
Raineman times are definitely bad if you lost your job then the Recession continues for you and your family in terms of a financial Drought!
05/17, 9:25 AM
posted by:
SoTXFord
This guy is doing good things at Ford and as an investor, he’s making me money. I just hope that this gamble with retooling the SUV plant for the new Focus will pay off.
05/17, 1:53 PM
posted by:
carstuff
Jake, that combining into one dealership franchise is already in process. And GM/Chrysler has been doing the same combining/paring for years now. Bankruptcy just allows it to happen much quicker and cheaper.
“The second-largest U.S. automaker is paring urban dealers and combining Lincoln-Mercury stores with Ford-brand retailers, said Ken Czubay, vice president of sales and marketing. Ford had 3,723 dealers as of March 31, down 16 percent from 2004.”
05/17, 7:25 PM
posted by:
Pazzo Canguri
Dont get too ****y buddy…..troubled times aint over yet…