Ford's Focus Electric at the Shanghai Auto Show. Image: Ford Motor Company
A mix of new cars, higher transaction prices and rising domestic and European sales helped Ford Motor Company earn a profit of $2.6 billion in the first quarter of 2011. If you’re keeping score, that was Ford’s best first quarter performance in 12 years, and it out-shined last year’s Q1 profit of just over $2 billion. Total revenue came in at $33.1 billion, which represented an increase of $5 billion over the first quarter of 2010.
This latest performance shows that the auto giant is quick to learn lessons on product mix. Rising fuel prices in 2008 gave Ford a dismal performance for the year, since their product mix was heavily weighted towards trucks and SUVs. Ford still sells a lot of both, but the new F-150 and Explorer models are more fuel efficient than their predecessors. Ford’s also got more fuel efficient offerings in their product line, like the 40 MPG Fiesta and the 40 MPG Focus. Even the Mustang, revamped for 2011, gets noticeably better fuel economy than the models sold in 2008. In other words, Ford offers fuel-efficient vehicles across virtually every product category, and is in a much better position to weather rising fuel prices than they were in 2008.
It’s not all good news in Dearborn, and Ford is advising investors to expect lower quarterly results later in the year as the automaker struggles with increasing commodity and transportation costs, seasonality and costs related to long term product plans. Still, it looks likely that the days of Ford losing money may be behind them, even if it is too early to project any kind of year end numbers.
Source: Automotive News
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
