Ford Reaches Best Results Since 1998

Ford Motors Co. has reached their highest First Quarter Profit since 1998 and a lot of it is due to their new energy efficient vehicles. With the increasing prices of gasoline, Ford is able to increase the price of their car because of the benefit of needing less gas. The cars that are currently very popular are their small cars such as the new Fiesta and Explorer. Ford claims it's profit raised 22 percent to $2.6 billion this first quarter which is a very strong increase in this economy. The company continues to climb since they suffered near bankruptcy 5 years ago. Their strongest growth occurred in Asia where there was a 31 percent increase in profit.



2011 Ford Explorer

 Ford President and Chief Executive Allan Murphy is very content in his company's delivery of the first quarter. In the US, the Explorer's sales doubled for the SUV which is more fuel efficient than previous version. The Fusion saw a 27 percent increase. With the rising gas prices, consumers are buying smaller which causes a profit loss for Ford. Even with this, they have been able to manage their car prices to stay relatively high, especially because of the Sync Entertainment. Ford has also suffered some negatives such as a decrease in their Lincoln sales by 11 percent.

Ford also lost some market share, the lost two of their brands. They sold Volvo and shut down Mercury.

The company has become more disciplined, they have stopped producing more than they can sell, by doing this it leads to big discounts. They continue to pay off their debt and are making substantial progress. With the March 11 Earthquake, plants in Asia have taken a toll but so far they have not affected the base of the entire company. Three plants are closed this week due to lack of parts. Even with this success, investors will be keeping their eye out for any troubles throughout the company production.

I feel that this is a prime example of how determination takes you a long way in life. Ford was close to bankruptcy and they went through a crisis but with hard work and a positive attitude they lifted the company back up again. It also displays the effects that take place after such a horrid event. It's 5 years later and Ford still owes over 16 billion dollars. Even with such a burden on their shoulders they are still managing to be one of the top car companies. This story is remarkable and I believe it's a good motivational story for determination and perseverance.