Ford's third-quarter results, released yesterday, showed that the US automaker's cost-cutting drive is paying dividends as it posted a solid profit.

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

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

Particularly good news for Ford was that its once bleeding North American operations showed its first operating profit (of $357-million) since the second quarter of 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 upturn in the market, but we have seen (Ford) results that are favourable,” commented Feder.

He said that Ford was 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 expected to be solidly profitable by no later than 2011.

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