Marketplace®

Daily business news and economic stories

Ford posts a quarterly profit

The automaker bucked the odds today, posting a net income of $100 million. Strong sales in Europe and South America, and employee buyouts are cited as contributing factors. Marketplace's Jill Barshay reports on the surprising news.

TEXT OF STORY

Lisa Napoli: Thanks to strong sales in Europe and South America, and employee buyouts, Ford Motor Company has posted a quarterly profit — a net income of $100 million. Jill Barshay reports in an age of rising gas prices, it’s not easy selling cars.


Jill Barshay: Ford has the same problem as GM and Chrysler. Its lineup is filled with pick-up trucks and SUVs, but Americans want smaller, fuel-efficient cars. David Healy of Burnham Securities says the 35-mile-per-gallon Ford Focus is selling out of showrooms. But at 15-grand a pop, he says Ford isn’t making money on it.

David Healy: Their most profitable models are selling poorly, and their least profitable or even unprofitable models are selling very well.

Healy says switching to alternative energy cars isn’t as easy as it sounds.

Healy: Ford is coming out with more hybrids and is talking very green at this point. But hydrogen or fuel cells are a long, long way away. So, Ford is going to have to make it on gasoline or diesel vehicles.

In New York, I’m Jill Barshay for Marketplace.

Related Topics

Tagged as:

Latest Episodes

View All Shows
  • Marketplace Morning Report
    31 minutes ago
    6:40
  • Marketplace Tech
    2 hours ago
    11:03
  • Marketplace
    14 hours ago
    25:19
  • Make Me Smart
    19 hours ago
    19:00
  • This Is Uncomfortable
    3 days ago
    56:05
  • Million Bazillion
    24 days ago
    32:45