Ford: Read It & Smile

The headline says it all: FORD POSTS THIRD QUARTER 2009 NET INCOME OF $1 BILLION; CASH FLOW TURNS POSITIVE; NORTH AMERICA PROFITABLE The company is not out of the proverbial woods yet, but it sure has the clearing in sight.

The headline says it all:

FORD POSTS THIRD QUARTER 2009 NET INCOME OF $1 BILLION; CASH FLOW TURNS POSITIVE; NORTH AMERICA PROFITABLE

The company is not out of the proverbial woods yet, but it sure has the clearing in sight. And they’re cutting the path to get there.

Alan Mulally, Ford president and CEO, stated, “Our solid product lineup is leading the way in all markets. While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger.”

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One key factor—beyond the products themselves—is that it reduced its structural costs in the automotive portion of its business by $1-billion. This is via lower manufacturing and engineering costs (yes, including headcount reductions), as well as the implementation of common global platforms and common product development processes. The company had targeted structural cost reductions of $4-billion for 2009. Through the first nine months, it has reduced costs by $4.6-billion.

Note that they’re not cutting their way to prosperity. For example, there are plans for about $5-billion in capital spending. Through the first nine months, they’ve invested $3.4-billion.

Big kudos to the people in Dearborn and elsewhere in One Ford.