Ford earned a tidy profit for its recently completed quarter and expects to return to profitability if and when car sales turn up. Since the current rate of new car buying is on a 24-year cycle, which cannot last, the odds of this happening are pretty good. The possible hitch is unfair competition from the Government Motor Company (GM). Ford has done this the old-fashioned way by managing its way out of a crunch. GM, on the other hand, became a beggar and recipient of Federal alms from an administration and Congress anxious to placate the auto unions. If GM's sales continue to tank, what are the chances of its dumping cars at below cost prices to keep those same union jobs and thereby imperiling Ford's recovery? Stay tuned on this story.
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Makes me want to buy a ford.
ReplyDeleteKind of.