Ford makes $1.2 Billion in third quarter 0

Ford-to-concentrate-on-SUVs-in-ChinaFord has announced that they have made $1.2 billion for the third quarter of the year. Although it sounds like a lot, the company will be disappointed with that figure.

During the same period last year, the American car company made $2.6 billion. That represents a 54 percent drop in profits. Some of the factors are down to the costs of recalls and economic troubles in Europe and the rest of the world. 23 new models have also been in the pipeline for this year which would have been a major factor.

The aim is to raise the profits for the rest of the year going into 2015. Ford is banking on those 23 new models to help achieve better results.

There have already been some hiccups along the way however. Ford’s third quarter automotive pre-tax results are lower than 2013 (Apart from the Middle East and Africa markets). Third quarter earnings per share are down 45 cents per share when compared to the same period last year.

Mark Fields, the President and CEO tried to address these matters saying “Clearly, there’s a lot of a things going on in the world. We expect this to be a growth industry, and we’re a growth company in that industry.”

12 of the 23 new model launches have been completed according to plan says Fields. He also mentioned that the aluminum bodied F-150 pickup also due soon. With a successful launch of this model, it could help counter the 8 percent third quarter volume drop in North America.

Such high hopes have been placed on the pickup truck. Many experts believe it will be revolutionary.

It has been noted that Ford changed their philosophy when it comes to developing engines and drivetrains. They are aiming using lightweight materials and small displacement engines. These have been seen in the new Mustang and F-150. Once this new philosophy finds its feet, profits are expected to go up.