For Ford Shareholders, What a Change from 2009
WASHINGTON - During the depths of the auto industry's collapse a year ago, Ford told shareholders at its annual meeting that they might have to wait until 2011 before the company started making money again. It turns out they didn't have to wait that long. Thanks to well-reviewed cars and trucks, aggressive cost-cutting and goodwill from consumers for avoiding a taxpayer bailout, Ford Motor Co. has posted four straight profitable quarters, the Associated Press reported. It has also more than doubled its stock price from below $5 last May, and seized market share from floundering rivals such as General Motors Co. and Toyota Motor Corp. Ford now expects to be solidly profitable this year. And that likely means happier shareholders at Thursday's 2010 Ford meeting in Wilmington, Del. But there could still be some tough questions for Ford Chairman Bill Ford and CEO Alan Mulally. Ford had $34 billion in debt at the end of the first quarter, much of it stemming from the company's 2006 decision to mortgage its factories and other assets for $23.5 billion to restructure its operations. The debt puts Ford at a disadvantage to GM and Chrysler Group LLC, which have only a fraction of Ford's debt after shedding most of it during bankruptcy reorganization last year. Ford spent $1.5 billion in interest last year, or $311 per vehicle it sold worldwide. With the recession over and auto sales slowly improving, Ford will likely benefit more than many of its rivals, analysts say. Ford has been taking share from Toyota, which has recalled more than 8 million vehicles globally because of safety issues. It has newer products and a perception of higher quality than Chrysler and doesn't suffer from the taint of the federal bailout as GM does. New Ford vehicles, such as the Fiesta subcompact for global buyers and Explorer SUV for North America will likely help the automaker expand into new markets and grab a greater share of U.S. sales, Merkle said. Those vehicles go on sale in the U.S. later this year.
More Industry

Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →