Monday, November 2, 2009

If you buy American buy Ford

Ford's 3rd quarter figures were released this week highlighted by $1 billion in profit and a positive growth outlook for 2011. "http://www.foxnews.com/story/0,2933,571009,00.html". Of course spurring the number was the government cash for clunkers program, which brought many buyers in to Ford dealership's across the country. But what really help spur this turnaround were two things: Ford's decision not receive government bailout and ability to consolidate debt without going through bankruptcy. In the eyes of many Americans, this illustrated Ford's ability properly manage itself along other American companies.
When business was booming, Ford maintained it business model. It did not try to over expand it truck and SUV lines even though they were bringing in huge margins. Ford understood that all the external pressures pressing on the car market would soon be too much for truck and SUV sales. Early in this decade, Ford was truly committed to producing a hybrid car that would stylistic appeal to buyers as well be very economical. Ford also continued to develop its lower margin cars to be more efficient without a huge price increase. Ford used the boom in sales to strengthen its position against debt holders and it paid huge dividends when sales crashed. Ford managed to consolidate debt and cost production costs to avoid taking federal money or proceeding through bankruptcy. Their ability to remain flexible and to evolve are essential into surviving this new market.
And this is why I believe if you buy American you should buy Ford. They have demonstrated the proper way to tightrope profit margins with operating efficiency and customer satisfaction. They have a new sleek and fuel efficient product line that are very affordable while still offering some of there high value trucks such as the best selling F150. We all know that American cars are dependable, now it is time to recognize which to those makers we can count on no matter where the future will take us.

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