Ford’s third-quarter results have shown that the US auto-
maker’s cost-cutting drive is paying dividends, as it has posted a solid profit.

Ford Motor Company of Southern Africa (FMCSA) president and CEO Hal Feder says its parent – which, unlike fellow US manufacturers General Motors and Chrysler, did not opt for Chapter 11 protection from bankruptcy and government aid infusions – has reported 
a pretax operating profit of $1,1-billion, which is a $3,9-billion improvement on figures for the third quarter of last year and a $1,5-billion improvement on figures for the second quarter of 2009.

The company has also reduced costs by $4,6-billion in the first nine months of the year.

Particularly good news for Ford is that its once bleeding North American operations have shown their first operating profit (of $357-million) since the second quarter 2005.

The Asia-Pacific and Africa region notched up an operating profit of $27-million.

Ford also managed to raise $2,8-billion in cash in the third quarter, with the company’s cash balance – once a major concern among investors – at $23,8-billion.

“We have not seen a major up-
turn in the market, but we have seen results that are favourable,” 
comments Feder.

He says Ford is investing heavily in the growing Asia-Pacific region going forward, with a $550-million assembly plant to open in India in 2010, and a $490-million 
assembly plant to open its doors in China in 2012.

Ford expects to be solidly 
profitable no later than 2011.

In South Africa, FMCSA 
currently ranks fourth in terms of sales volumes, behind 
Toyota, Volkswagen and General Motors.

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