October 26, 2011
$1.65 billion profit on SUV Sales for Ford 0
Ford has reported a $1.65 billion profit in the USA for SUV sales for the third quarter of this year. This is reported as the second biggest record in their history. The Ford SUV section of the company’s American line-up in particular has had a major impact in helping the company achieve such great profits. SUV and pickup trucks make up 68% of the company sales across the country.
This is the tenth consecutive quarter in which Ford has seen a profit being made. Last year, the third quarter made a profit of $1.69 billion. The results published today represent great progress with the company maintaining their success.
They are the second largest car manufacturer in the U.S.A. Ford’s Chief Executive Officer, Alan Mulally is the man behind most of the recent achievements from the company. It was his idea to place a large focus on SUV’s which provide great fuel efficiency as well as being better catered for a more demanding market has clearly paid dividends for the company.
The newly revived Ford Explorer has an increase of 30% in terms of efficiency. The sales have almost doubled in 2011 compared to 2010. An average of $38,108 was paid for the Ford Explorer which is the best average since 2002 according to Edmunds.com.
The company’s overall utility vehicle sales are reported to have risen by 29%.
Production of cars and light trucks was increased by 12% to 656,000. This segment of the market achieved a £33.1 billion increase of profits.
Brian Johnson, a Barclays Capital Analyst has said that the truck market within the country was more profitable than expected. “North American truck production was a lot richer than we anticipated. Even with some cost headwinds, they’re making good money. Ford’s cost and engineering efficiencies are paying off.”
An average of $32,945 was paid for trucks in September which is an improvement from two years ago (According to Edmunds.com)
The fact that buyers are now paying more for Ford SUV vehicles such as the Ford Explorer has helped the company become more proftable. There is now more trust in buying the Explorer as its reliability issues seem to be behind them. With a double dip recession expected in America, will Ford continue to achieve such great heights?