Ford Motor Co.’s second-quarter profits of $2.6 billion blew away all expectations, solidifying the company’s recovery and going a long way to help the economy of its home state of Michigan.
Fellow “Big Three” automakers General Motors Co. and Chrysler Group have yet to report their earnings, but the early word is that sales have been encouraging.
More importantly for Ford, the higher profits were due to a 20 percent increase in sales, reflected by higher prices for vehicles sold. This is important for the company, as it means that it didn’t have to resort to discounts, promotions, and other deep incentives to entice consumers to purchase a car.
Chief Executive Officer Alan Mulally’s turnaround plan has been especially swift. The company has relied on a steady stream of freshly designed new models such as the redesigned Taurus, Mustang, and the Fusion and Edge, all of which are popular among consumers.
Ford on Monday will also unveil the newly redesigned Ford Explorer SUV, and later this year, it will introduce its highly anticipated new Ford Focus, based on the European version of the car that has been extremely popular overseas.
The $2.6 billion profit was the fifth straight profitable quarter for the Dearborn, Mich.-based automaker, which is also the No. 2 carmaker in the United States.
The results are even more impressive considering that the U.S. automobile market is still relatively weak, after touching a 30-year low in 2009.