Post by TonyV on Jan 30, 2010 1:36:17 GMT -5
Posted: Jan. 29, 2010
How ford did it
Key factors that helped Ford earn a profit
Products: The success of hot products, such as the redesigned Ford Fusion and all-new Ford Fusion Hybrid, which became the best-selling car made by a domestic automaker in 2009 and won numerous awards, and the redesigned Ford Fiesta subcompact car, which became the second-best selling car in Europe in 2009.
"One Ford": Made progress on its "One Ford" plan by selling Jaguar and Land Rover in 2008 and reduced its ownership of Mazda from 33% to 11% in 2008, allowing Ford to concentrate on Ford, Lincoln and Mercury.
Cost cuts: Reduced manufacturing, engineering, pension, advertising and incentive costs by $5.1 billion in 2009.
Loans: Took out $23.5 billion in loans in 2006 to help it survive -- a move that gave the company the reserves it needed to survive the global recession that began in 2008 without asking for emergency federal loans.
Reduction in debt: Found creative ways to reduce its debt in 2009, moves that resulted in a $4.7-billion onetime accounting gain and led to improved credit ratings.
Plant closures: Closed 14 assembly and parts plants over the past four years and reduced its total North American workforce by about 41% since 2006.
Lowered inventory and incentives: Ford reduced its total inventory of cars and trucks in the U.S. from 441,000 at the end of 2008 to 382,000 at the end of 2009. With fewer cars to sell, Ford was able to cut incentive spending by 26.1% in 2009 to an average of $2,701 per vehicle, according to Autodata.
Sources: Ford, Free Press research
How ford did it
Key factors that helped Ford earn a profit
Products: The success of hot products, such as the redesigned Ford Fusion and all-new Ford Fusion Hybrid, which became the best-selling car made by a domestic automaker in 2009 and won numerous awards, and the redesigned Ford Fiesta subcompact car, which became the second-best selling car in Europe in 2009.
"One Ford": Made progress on its "One Ford" plan by selling Jaguar and Land Rover in 2008 and reduced its ownership of Mazda from 33% to 11% in 2008, allowing Ford to concentrate on Ford, Lincoln and Mercury.
Cost cuts: Reduced manufacturing, engineering, pension, advertising and incentive costs by $5.1 billion in 2009.
Loans: Took out $23.5 billion in loans in 2006 to help it survive -- a move that gave the company the reserves it needed to survive the global recession that began in 2008 without asking for emergency federal loans.
Reduction in debt: Found creative ways to reduce its debt in 2009, moves that resulted in a $4.7-billion onetime accounting gain and led to improved credit ratings.
Plant closures: Closed 14 assembly and parts plants over the past four years and reduced its total North American workforce by about 41% since 2006.
Lowered inventory and incentives: Ford reduced its total inventory of cars and trucks in the U.S. from 441,000 at the end of 2008 to 382,000 at the end of 2009. With fewer cars to sell, Ford was able to cut incentive spending by 26.1% in 2009 to an average of $2,701 per vehicle, according to Autodata.
Sources: Ford, Free Press research