Thursday, July 23, 2009
Ford reports more progress on its turnaround efforts. A one-time gain enabled it to turn a profit for the quarter. While the company continues to burn cash at a substantial rate, it does appear to making strides toward turning its core auto operations profitable. It's not out of the woods yet, but there's light at the end of the tunnel. Of course, cutting costs, improving quality, and reducing debt will help the firm stop the bleeding, but to ultimately have sustainable profits, Ford will have to be a leader in new product development. A major test will be this year's introduction of several new models, including the all-new Taurus championed personally by CEO Alan Mullaly. If the Taurus becomes a hit, Ford could have a bright future ahead.