GM Profit Tops Toyota, Trails Ford as World Sales Seek Record
Ford Motor Co. widened its lead as the world’s top-earning automaker in the third quarter, and General Motors Co. overtook Toyota Motor Corp. amid record global sales for the industry, Bloomberg reported.
Ford has earned $6.37 billion in the nine months ended Sept. 30, already more than doubling last year’s profit of $2.72 billion. Honda Motor Co.’s $5.34 billion in profit is the second-highest this year. Bloomberg used net income in U.S. dollars for comparisons.
The industry is benefiting from global sales that may surpass 70 million vehicles this year, according to estimates by IHS Automotive and J.D. Power & Associates. Automakers restructured during the global recession by cutting brands, closing factories and firing workers, positioning themselves for higher profit as demand returned.
“They’re improving their top line and reducing costs, and that flows to the bottom line,” said Alan Baum, principal of Baum & Associates, an industry consultant in West Bloomfield, Michigan.
GM reported third-quarter net income of $2.16 billion yesterday, bringing the Detroit-based automaker’s earnings this year to $4.77 billion. That tops the $4.46 billion profit by Toyota City, Japan-based Toyota, according to data compiled by Bloomberg.
Toyota and Honda, Japan’s two largest carmakers, forecast weaker earnings in the second half of their April-to-March fiscal year as the yen’s strength against the dollar reduces the value of overseas earnings.
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