Who says you can't make money selling smaller, more fuel efficient cars? Ford CEO has been preaching that less can be more at Ford, and in the first quarter that strategy paid off. Ford made $2.6 billion in the quarter earning $.62 a share. With auto revenue being $31 billion, Ford easily beat the street which was forecasting $.50 a share on $29.7 billion in auto revenue.
It was Ford's most profitable first quarter since 1998. No wonder Ford CEO Alan Mulally was ebullient when I talked with him minutes after the earnings came out. Mulally told me, "We're in the best position we've ever been in."
Need proof? Ford is now net cash positive with automotive gross cash exceeding debt by $4.7 billion. Its revenue jumped 18% and profits surged 40%.
But this is Detroit, and this is Ford.