By John Addison (7/23/09). Ford has returned to profitability, benefiting from increased market share which is the likely result of improved mileage. Ford earned almost $2.4 billion for the quarter, but it was the result of a large one-time gain associated with the debt reduction actions completed in April. The pre-tax operating losses were $424 million; an improvement of $609 million from year-ago results.
Ford has gained U.S. market share for January through June 2009. Wards Six month market share:
GM 19.8%
Toyota 16.1%
Ford 15.9%
Honda 11.1%
Chrysler 9.8%
Ford also gained share in Europe and Asia, boosted by the fuel efficient Fiesta.
In contrast with GM and Chrysler, Ford is the only U.S.-headquartered manufacturer with vehicles qualifying for the Clean Fleet Report Cars with the Lowest Greenhouse Gas Emissions. Both the Ford Fusion Hybrid and Ford Escape Hybrid are in the top 10 list.
Ford is on target to meeting CAFÉ with average fuel economy in 2010 being 20 % better than 2005.
The Focus will be increasingly important to Ford’s success as it lowers manufacturing cost with a global version and when it offers an electric version in 2011.
In 2012, the Ford Escape Hybrid, already the most fuel efficient SUV, will get a lot more efficient by also being available as a plug-in hybrid. The PHEV Escape Hybrid is already being tested in a number of fleets. By 2012, Ford will offer multiple
EcoBoost engines will be delivered in over 1 million vehicles globally, delivering better mileage through turbocharging and direct fuel injection.
Ford could have greater market share than GM by 2012, unless GM transforms its entrenched culture centered on large heavy vehicles as the only way to generate adequate profit margins. In the next few years, Ford will face increased competition with Toyota and Honda both offering hybrids for less than $20,000. Ford will also face intense EV competition with Nissan, BYD, and a number of emerging electric vehicle makers.
In the future, oil price increases and oil shocks will deliver market share to makers who minimize consumption of petroleum fuels. Winners will build the best hybrids, plug-in hybrids, and electric vehicles. Ford is investing nearly $14 billion in the U.S. over the next seven years on advanced technology vehicles, including $5.9 billion in loans from the U.S. Department of Energy for advanced fuel-saving vehicles.
“In 10 years, 12 years, you are going to see a major portion of our portfolio move to electric vehicles,†Ford CEO Alan Mulally stated earlier this year. Now Ford is executing its electrification strategy.
Ford Q2 Earnings Presentation
Earnings Transcript
