Ford, the only member of the Detroit Three to decline a federal bailout, recently reported a surprising $1 billion profit.
That's right, ... an automaker turned a profit in the worst economy in a generation. Ford also managed to increase its share of the North American auto market by 2.2 percentage points. And it did this with higher prices and less discounting than GM.
GM, meanwhile, is still trying to find its footing after taking billions in federal aid and reorganizing in bankruptcy. For the third quarter, it reported yet another drop in sales...
Like GM and Chrysler, Ford has shed thousands of jobs, shuttered plants and streamlined operations. It has revamped product lineups and invested in new technologies.
Ford has long been smaller than GM, so maybe it was just easier to turn the ship there more quickly. Or perhaps Ford has made better calls on particular products and particular technologies...
Ford still has a mountain of debt -- money it borrowed before the credit collapse. This helped the automaker stay out of the federal wringer, but it's still a burden going forward.
And Ford was unable to persuade the United Auto Workers to rework their contract to bring it in line with those at GM and Chrysler. That could be an issue later with work rules and flexibility.
In short, Ford is hardly out of the woods. But it is still well ahead of its fellow Michigan-based automakers.
Lansing State Journal
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