Ford on the Way to Profit, Records Increasing Demand
"Our business plan assumed about the amount we got," Allan Mulally told Reuters. "It's very consistent with our plan.nWe will continue to size production with demand. But clearly with our market share gain, we're increasing production to support the desirability of Ford products."
Additionally, Mulally says the restructuring plan goes just like it should and the company expects, as initially announced, to return to profitability in 2011.
"We have no plans that we haven't announced," Mulally said. "The only plan is that we will get back to profitability in 2011."
Although Ford is the only Detroit Three member who tackled the economic chaos without support from the US government, the company was recently awarded $5.9 billion in US loans to invest in greener and fuel efficient models, hybrids and electric cars. Asked whether the company expects more funds from the state, Mulally said the need for federal loans will be evaluated as Ford gets deeper in the electrification process.
"We don't know," Mulally said. "It will be evaluated as we go. I think (Energy Secretary Steven Chu) said that he's anticipating that more money will be allocated because it's so important and a lot of the participants wanted funding. We're really on plan with our plan to finance our transformation. Clearly, we have sufficient liquidity and we've reduced our cash burn and we've also provided guidance that we are going to continue to reduce our cash burn every quarter through this year."