The New Ford Flex Will Feature The Company's EcoBoost Engine Technology
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Losing $1.4 billion dollars is not a good thing, but for the Ford Motor Company, it's almost a miracle. Many financial analysts had predicted losses of $2.5 billion or more for the automaker. The earnings reports indicate that Ford is serious about sticking around for a long time, even as General Motors struggles through its restructuring plan and Chrysler is on the verge of bankruptcy. Is there one thing that contributes to Ford's longevity? Nope, there are a lot of things.
First and foremost is that the company has maintained fiscal liquidity. While GM and Chrysler slide deeper into debt and rely on bondholders and investors, Ford, as of March 31, had over $21 billion in cash on hand. Even if Ford didn't make any fiscal changes, they could still survive at this pace to the end of 2010 without asking for any bailout money, but the company is making some big changes.
The 2010 Ford Fusion Hybrid Is One Of The Most Efficient Hybrids On The Market
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One of the weapons in Ford's arsenal is their new lineup of vehicles, which reach into markets the company hasn't previously penetrated. For example, the new 2010 Ford Fusion Hybrid manages to get great gas mileage (a conscientious driver can get 43 mpg city), and the impending introduction of the company's EcoBoost engines into the Ford Flex and Lincoln MKS will further cement their reputation as a producer of efficient cars.
The company is also working hard to reduce waste from their production process. Representatives from Ford said that they had already reduced production costs by $1.9 billion this quarter, and they were on track for an overall $4 billion reduction by the end of the year. One of the main contributors to this is by making "global cars." Rather than develop different platforms and models for different regions of the world, Ford is focusing on making cars that can be sold in many different markets with only negligible alterations.
The 2010 Ford Fiesta Will Be Built On A "Global Platform"
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There are two other big factors that are helping Ford survive in tough financial waters: GM and Chrysler. Many sales in the past few months have been to customers who are wary of buying a car from a company that may not be there in a year, so they are turning to Ford. Also, there are other buyers who have political objections to the use of federal tax dollars as a bailout for GM and Chrysler and they want to support American-made vehicles, so Ford is their main buying option. Whatever the particulars or the motivations, Ford is strongly positioned to stick around for a long time, based on the quality of their vehicles, instead of loans and bailouts.
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