Inside Ford's Best Year In A Decade
Regular TTAC readers know that there’s more to a successful performance from an automaker than pure volume alone. Average transaction prices, market share, and incentives all play a role in translating production numbers into profits. Luckily, our pals at TrueCar have broken all that lovely data down, and they’ve sent over the numbers behind Ford’s recently-announced $8.3b profit, the Blue Oval’s best performance in over a decade. And, as you can imagine, a performance like that requires not only a hefty increase in volume (up nearly 20% on the year) but also improvements in market share (up 1.23%), and transaction price. Yes, incentives stayed stronger than they perhaps needed to be, but they now make up a lower percentage of the average transaction price. And that, ladies and gents, is how you make a $5.4b pre-tax operating profit in the US market alone [Q4 and historical data after the jump].
More by Edward Niedermeyer
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Wow...disappointing results. http://www.cnbc.com/id/41311347 http://www.dailyfinance.com/story/ford/ford-shares-tank-on-worse-than-expected-earnings-results/19819553/ Why would anyone expect anything other than disappointment from Ford?
2005 was really their best year. How is it that Ford could make more money in 2010 with less market share and selling a million fewer cars? Was it the $500 less per vehicle in incentive that made all that difference? Decreased labor costs? Better corporate structuring? Someone enlighten me.