As with any surprising result, there must be some reasons behind the achievements. In Ford's own words, the main reason behind the company's success were the year-over-year market share increase in North America, South America, and Europe, record growth in China, and the immense success of the Ford Fiesta. Also worth mentioning are Ford's cost cutting measures, as well as the US CARS program.
“Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy,” Alan Mulally, Ford CEO said in a release. “Our solid product lineup is leading the way in all markets. While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger.”
Ford posted a $30.9 billion Q3 revenue, down $800 million from the same period in 2008. The manufacturer's structural costs were reduced by $1 billion in the quarter, mainly by cutting manufacturing and engineering costs (including slashing benefits, laying off personnel, and the development of global platforms).
“The Ford team delivered another solid quarter of results with strong contributions from all our business regions,” Lewis Booth, Ford CFO concluded. “Positive cash flow, a stronger balance sheet and a third quarter operating profit are evidence that Ford is meeting the global economic challenges.”
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