By on October 30, 2012

Shaking off a $468 million loss in Europe, Ford reports better-than-expected profits for the third quarter.

Driving profits are higher vehicle prices and lower costs in North America. According to Reuters, Ford reported an operating profit of $2.2 billion for the quarter, up from $1.9 billion a year earlier.

It was the best third quarter ever for the automaker. In North America, Ford made $2.3 billion. Ford expects to lose at least $3 billion in Europe over the next two years.

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22 Comments on “Ford Reports Best Third Quarter Ever On Higher Prices And Lower Costs At Home...”

  • avatar

    Where are Silvy and DeadWeight to remind us how One Ford is a failure and how Ford will never make money selling cars at BMW prices? Ford has now posted a pre-tax profit for 13 consecutive quarters.

  • avatar

    The Europe woes don’t look so bad in light of making 2.2 billion overall. Yes, Europe will be down for a bit, just like the US was down for a bit, and eventually China will be down for a bit too – everything is cyclical and markets will always go up and down. This just shows how silly it would be to pull out of Europe entirely, if you can make 2.2 billion net profit in one quarter, it’s not that hard to accept an average of 375 million per quarter loss in a struggling area that will eventually come back.

    • 0 avatar

      I’ll be honest, my father worked for ford for decades, but I was never a big fan (and my 2000 Focus didn’t help with that). Ford is making good profit, finally bringing out cars that people find interesting, not to mention they are actually taking action in Europe by getting rid of extra capacity and making the painful cuts where they are needed. The losses won’t continue in Europe forever, especially with the changes. Compare that to GM who doesn’t have the balls to tackle their overcapacity problem and keep getting involved with tie-ups they have no business doing (unless they just want to bleed cash, as we have seen).

      Seems sync and the dct transmissions are still sore spots for a lot of people, but personally that is a non-issue for me as I tend to drive manual transmissions and put my own stereos in everything…

    • 0 avatar

      NulloModo: Hear! Hear!

      That’s exactly the benefit of having a global presence. Renault is hurting in Europe? Who cares! They are more than making up for it in SOuth America as is Nissan elsewhere.

      Fiat/Chrysler the same, well, not exactly. Their survival depends on them becoming a player in some key Asian markets.

  • avatar

    this is much better news than the consumer reports nonsense from yesterday

  • avatar

    Glad to hear it. Ford probably has the most interesting line-up of the domestics, and it’s good to see that their solid work has led to solid results.

    As someone who is generally import-friendly (my rental experiences of domestics and the ownership experiences of friends left much to be desired), Ford is the only domestic automaker that makes things I’d seriously consider purchasing, like the latest Focus hatches or even the Mustang (as someone on the edge of Gen Y, I suppose this is important – or something).

  • avatar

    2.2 billion? More than enough to develop a new Ranger and a “Panther II”

  • avatar
    el scotto

    @ mkirk +1. How much of this profit is being used to pay down debt? Didn’t Ford hock just about all their assets? A hybrid 5MT 2WD Ranger? I’d be getting my codger on for at least a decade.

  • avatar

    Hopefully the quality issues will be dealt with in the same decisive manner as Ford’s European woes. I am not traditionally a Ford guy, but I have been pulling for them since the start of the carpocolypse!

  • avatar

    Imagine that. Profits go up when you cut corners.

    Bold moves indeed.

    • 0 avatar

      I usually buy Japanese, but my experiences with a Chrysler have me looking at American cars again. I will most likely buy a Ford for my next car. Ford has a number of vehicles that I like. I will look at Chrysler products again. GM, I will never consider after too many past problems with their junk.

  • avatar

    What drives Ford profits:

    1) Below market interest rates on loans subsidized by the Government;
    2) Lack of domestic competition since the government owners of GM and Chrysler have fixed prices in order to pay UAW wages and benefits;
    3) Lack of product investment as witnessed by near last place reliability rankings and poor packaging. Ford takes an older European sedan with back seat issues and introduces it as an all new Fusion.

    • 0 avatar

      So do you just go around making the back seat complaint everywhere that permits you to comment? You did it at least twice at TTAC and elsewhere too:

      Looks like the fanbois showed up late as Chocolatedeath said.

      1) below market interest rates are clearly unique to Ford and clearly do not help other carmakers
      2) GM and Chrysler’s labor costs are lower than Ford’s, even according to the Heritage Foundation, so will you please share what you are smoking?
      3) How is this an old Euro sedan? Ford of Europe did a lot of design work, and the same car is being launched in Europe (with different engine choices of course). It’s also hard to argue there wasn’t product investment.

      If you don’t like Ford, fine, but at least don’t make stuff up.

  • avatar

    Sorry the facts hurt. Ford took billions of government subsidized loans from the Energy department. Ford took many billions of low interest rate CP paper from the Fed. Then, with all this government money, Ford goes on to produce products that rank near the bottom according to Consumer Reports. Makes me so proud to be an American.

    Then, there is the labor cost issue. All the domestics are ripping off the American public with price tags designed to support excessive UAW labor costs and pension plans ( union & salary ). Hard to understand how some low ranking salary or union worker gets a better pension than an RN. Then, garbage studies are produced to convince the public labor costs are not a problem.

    I am looking forward to the democrats being thrown out of office in 1 week. Then, we can get rid of the crony capitalism feeding Detroit.

    • 0 avatar

      “products that rank near the bottom according to Consumer Reports”

      Remember you said that Consumer Reports had been infiltrated by the Obama administration to make Toyota/Honda look bad. That was your spin on why CR did not recommended the past few Honda/Toyota’s tested. Are they to be trusted now because you agree with them this month? Have the Obama infiltrators been fired from CR? Or are the Obama infiltrators picking on Ford because they want GM stock to increase?

      So what way do you want it?

    • 0 avatar

      Jimmy you are spot on. It’s sad to see Ford fall again, but then they never really recovered from the late 90s and early 00s. The only difference is that there is a new goof running the ship.

    • 0 avatar

      So Jimmyy you claim to work on Wall Street and have the nerve to complain about Ford taking out a loan they will pay back? Please tell me how that logic works.

  • avatar

    Glad to see Ford is doing well. Not a big fan of the new Fusion though, IMHO it was a mistake not to offer a V-6.

  • avatar
    jim brewer

    “Interesting” is a good way of putting it. Their passenger cars are kind of a hodge podge of random vehicles–not the carefully developed ever so incremental niche products that GM made famous. Personally, I love it; Ford is like an engineer’s wet dream. A more opinionated car company would be hard to find outside of Morgan. But that’s not an unalloyed blessing to the consumer.

    Sad fact is Ford continues to be way too dependent on its light trucks no matter what it does.

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