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: How GM and Ford profits compare



Sal Collaziano
08-12-2010, 03:22 PM
How GM and Ford profits compare
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GM might have earned $1.3 billion during the April-June period, but that's half as much as crosstown rival Ford Motor, which may have more than three times as much debt but also has a longer track record as a profitable automaker.

As GM reports continued momentum in its turnaround, itís important to keep its mind the long, painful roads both took to improve.
Since 2005, Ford and GM closed plants, eliminated or sold brands and reduced dealerships.
While GM restructured with federal assistance, and now has the U.S. Treasury as a 61% owner, Ford took out a $23 billion loan in 2006, giving it the cash cushion necessary to be the only domestic automaker to survive 2009 without filing for bankruptcy.
Now, both are profitable again for the first time since 2007. But Ford is widely regarded as further along in its recovery.
But there are significant differences.
Fordís management team has been relatively stable since President and CEO Alan Mulally joined in September 2006.
GM, meanwhile, will get its fourth new CEO since March 2009 in September.
ďFord was going though a very rough time a few years agoÖ.and has had some time to get their house in order,Ē said Rebecca Lindland, director of IHS Automotive. ďBut GM is catching up quickly.Ē
Hereís a snapshot of how the Detroit automakers are performing:
Second-Quarter Net Income
GM: $1.3 billion (Year-to-date: $2.5 billion)
Ford: $2.6 billion (Year-to-date: $4.7 billion)
Profitability Track Record
GM: Has reported two consecutive profitable quarters
Ford: Has reported five consecutive profitable quarters
Dealers
GM expects to have 4,500 dealerships by Nov. 1. GM had about 6,049 before its bankruptcy.
Ford, which began the year with 3,550 Ford, Lincoln and Mercury dealers, is in the process of winding down its Mercury division. Many of Fordís 276 stand-alone Lincoln Mercury dealers will find it difficult to survive without Mercury.
Cash
GM ended the second quarter with $32.5 billion in cash on hand after generating $2.8 billion in cash during the quarter.

Ford ended the same period with $21.9 billion of cash on hand after generating $2.6 billion.

Debt
Excluding pension obligations, GM exited bankruptcy last year with $17 billion in debt and finished the second quarter with $8.16 billion in debt.
Ford reduced its total debt by $7 billion during last quarter, saving $470 million in annual interest payments and reducing its debt to $27.3 billion.
Products
GM has a stable of crossovers, including the GMC Acadia, Buick Enclave and Chevrolet Traverse, that are gaining market share. This year, itís also launching the heavy duty Chevrolet Silverado pickup, Chevrolet Cruze compact car and the Chevrolet Volt plug-in car.
Ford, meanwhile, is bringing to market a Ford Fiesta subcompact car, an all-new Ford Explorer SUV and an all-new Ford Focus compact car.
Employment
GM and Ford are adding jobs for the first time in years.
GMís total U.S. employment grew from 77,000 at the end of 2009 to 79,000 as of June 30.
Fordís North American work force grew to 72,000, up 2,000 from March 31 ó the companyís first quarterly employment increase since 2005.



More... (http://www.freep.com/article/20100812/BUSINESS01/100812046/1014/business01)

Sal Collaziano
08-13-2010, 12:43 AM
GM might have earned $1.3 billion during the April-June period, but that's half as much as crosstown rival Ford, which may have more than three times as much debt but also has a longer track record as a profitable automaker. As GM reports continued momentum in its turnaround, it's important to keep in mind the long, painful roads both took to improve.

More... (http://www.freep.com/article/20100813/BUSINESS01/8130319/1014/business01)

djhogie
08-13-2010, 06:58 PM
Without Mercury in the fold, GM will pass Ford in total sales.

ndwariga
08-13-2010, 07:11 PM
Ford really never overtook GM in north America, on a Global scale, GM is massive, probably still the biggest auto company in the world. Ford cannot hope to catch GM in the next five years from a units sold stand point, but they are off to a great start.
Without Mercury in the fold, GM will pass Ford in total sales.

Andrew L
08-13-2010, 08:05 PM
I have been keeping a spreadsheet of sales from the by the numbers from autoblog...

as of last month TOTAL

Ford has sold: 1,153,362
GM has sold: 1,254,859

They are pretty close but I doubt Ford is going to pull ahead this year

what IS interesting though is this

Ford Brand: 1,013,656
Chevrolet: 922,359

Mercury: 57,833
Buick: 61,517
Not that far off eh?

but look at this!

Lincoln: 49,348
Cadillac: 79,758

Almost HALF!

Mbukukanyau
08-13-2010, 09:50 PM
I have been keeping a spreadsheet of sales from the by the numbers from autoblog...

as of last month TOTAL

Ford has sold: 1,153,362
GM has sold: 1,254,859

They are pretty close but I doubt Ford is going to pull ahead this year

what IS interesting though is this

Ford Brand: 1,013,656
Chevrolet: 922,359

Mercury: 57,833
Buick: 61,517
Not that far off eh?

but look at this!

Lincoln: 49,348
Cadillac: 79,758

Almost HALF!
And those Buick numbers do not include the new product offensive they are about to unleash, and Chevy will be launching a record number, up to I hear something below Aveo is coming to the US, plus the Cruze and Aveo... Cadillac, between now and 2014 will have a new Escalade, XTS, S Class level, new CTS, ATS and even perhaps an XLR and a unibody SUV, .. do not forget they also have GMC,

Ford seriously need Mercury.

Andrew L
08-13-2010, 11:44 PM
And those Buick numbers do not include the new product offensive they are about to unleash, and Chevy will be launching a record number, up to I hear something below Aveo is coming to the US, plus the Cruze and Aveo... Cadillac, between now and 2014 will have a new Escalade, XTS, S Class level, new CTS, ATS and even perhaps an XLR and a unibody SUV, .. do not forget they also have GMC,

Ford seriously need Mercury.

I am not worried about Ford... with the Fiesta, Focus, New F-150, and Explorer for next year I think they will still be in the lead... but with out Mercury its going to be tough... Lincoln better get some friggen GOOD stuff soon... and it cannot be half assed done... like seriously good. the new MKS needs to improove its already good interior but add more leather like around the rear vents and rear seat controlls for climate and such... perhaps reclining rear seats... The new small Lincoln also needs to be a smash hit.... the MKX is looking promsing but we shall see... It already has a better engine lineup than the SRX and the SRX is selling fairly well.. if the MKX can outsell it then that would be a step in the right direction.

Mbukukanyau
08-14-2010, 01:43 AM
I hear the SRX is getting the 3.6 DI as a base motor, adding a 3.0 twin turbo as an upgrade motor and two mode hybrid variant..
I am not worried about Ford... with the Fiesta, Focus, New F-150, and Explorer for next year I think they will still be in the lead... but with out Mercury its going to be tough... Lincoln better get some friggen GOOD stuff soon... and it cannot be half assed done... like seriously good. the new MKS needs to improove its already good interior but add more leather like around the rear vents and rear seat controlls for climate and such... perhaps reclining rear seats... The new small Lincoln also needs to be a smash hit.... the MKX is looking promsing but we shall see... It already has a better engine lineup than the SRX and the SRX is selling fairly well.. if the MKX can outsell it then that would be a step in the right direction.

Andrew L
08-14-2010, 09:34 PM
I hear the SRX is getting the 3.6 DI as a base motor, adding a 3.0 twin turbo as an upgrade motor and two mode hybrid variant..

But when will this happen?