News / Economy

Ford Leads Turnaround for US Auto Industry

Multimedia

TEXT SIZE - +

The Ford Motor Company says its net income rose nearly 70 percent in the third quarter, its best performance in nearly a decade. The US automaker easily beat Wall Street expectations, reporting its sixth straight quarter of growth with net profits of $1.7 billion between July and September. General Motors and Chrysler are also expected to show gains when they report earnings next week. It's a sharp turnaround from just a year ago when two of the big three US automakers were in bankruptcy proceedings.




After shedding billions of dollars in debt, analysts say both General Motors and Chrysler are poised for a comeback.

Ford, the only US automaker to refuse a government bailout, has posted the strongest numbers, with six straight quarters of growth.

Despite a slowdown in its worldwide sales, Ford CEO Alan Mulally says aggressive cost cutting has helped the company boost profits. "We've come through this horrible recession. We kept investing in the future, we have the products that people really do want and value, and now we are switching over to profitable growth mode which is great for everybody," he said.

Together, the nation's big three automakers expect to invest $2 billion in their Michigan operations - thanks in part to tax breaks from the state. Auto analyst Jeremy Anwyl says the incentives could create as many as 2,300 new jobs. "The risk is if they don't offer these incentives that other states will and these jobs will go elsewhere," he said.

The United Auto Workers says laid off workers will be called back first, after which new employees will be hired at lower wages negotiated by the union. UAW representative Jimmy Settles calls it a "win-win" situation. "It's better than layoffs. We get a chance to have additional members, which mean additional families paying taxes, paying into the community, buying cars, being consumers -- so that's always a plus," he said.

Especially for thousands of workers - laid off after automakers closed plants last year. "Excited to be home and excited to have a job that I know I can stay here and have the stability with Ford Motor Company. This is it. This is home and we're not going anywhere, we're here to stay," he said.

Despite all the talk of a comeback, Chrysler has yet to post a profit. And GM, once the world's largest automaker, remains partially government-owned. Analysts expect auto sales in the US this year will also fall short of the average 16 million units sold before the start of the recession.  

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Resigns

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

World Currencies

EUR
USD
0.7287
JPY
USD
103.22
GBP
USD
0.6027
CAD
USD
1.0991
INR
USD
60.191

Rates may not be current.