Car Biz Weekly

Amid the endless  news of the weakened auto industry, glimmers of hope are beginning to surface. The brightest of these glimmers may be at Ford, which has reported a net income of $2.3 billion in the second quarter of this year. While the company still posted a pre-tax operating loss, Ford still managed to cut losses dramatically compared with last year.

Ford’s improved financial reporting is due to a number of cost cutting initiatives, improved market share, and encouraging results from Ford Credit, the automaker’s financial arm. A Ford dealer in Los Angeles says that all of these factors combine to ease the pain of the ongoing worldwide financial crisis.

With Ford continuing its restructuring and recovery, one Ford dealer specializing in car loans Salinas is hopeful that the automaker will get out of the red by 2011. That’s a bold goal considering that there is no end in sight for the auto industry’s recovery. In addition, Ford Credit is showing healthy figures, thanks to a $646 million profit in Q2.

While other Big Three automakers are emerging from bankruptcy and starting over, Ford is continuing to make the changes that seem to be yielding results. In an effort to turn things around, Ford has already made dramatic cuts, which has included prominent brands says Denver Auto Loans. In the coming months, consumers can expect more changes to come to Ford via the automaker’s lineup as well. Continue reading ‘Ford Continues Drive Towards Profitability’

Month after month, automakers and car dealers have seen dismal sales numbers have driven plenty of people out of business. However, June sales may be a turning point, as the month showed glimmers of hope for sales. The question remains whether this glimmer of hope is a sign that the worst is over.

General Motors finished the month with a 33 percent decline in sales, down only slightly more than analysts predicted. In addition, Toyota and Chrysler both faced declines that were worse than predicted. The only automaker to perform better than expected was Ford.

While auto sales data from June is by no means overwhelmingly positive, Florida Commercial Trucks points out that the sales numbers have improved compared with other months earlier in the year. June sales overall slipped from 9.9 million cars to 9.7 million cars. But despite the declines, June still marked the second best performing month yet this year, which again may not be too exciting, but it’s something.

The auto industry has a long way to go before it can return to its former health. Rather than a sharp bounce back, auto sales are likely to recover only gradually over a long period of time suggests Yonkers Used Cars. But analysts with Edmunds.com suggest that the leveling off of sales declines seen in the month of June is at the very least a sign of stabilization.

Other analysts have been even more optimistic, stating that current auto sales suggest that the worst is now over. A sign that this optimism is warranted is the fact that GM saw a 10 percent increase in sales in the U.S. compared with last year. Peoria Chevy says that the overall decline at GM was actually attributed to a huge hit to fleet sales. With Chrysler already out of bankruptcy, its partnership with Italian automaker Fiat has yet to have an effect on its lineup. Meanwhile, a used cars Saginaw dealer suggests that fleet sales have also hurt Chrysler’s overall sales figures.

As already mentioned Ford has fared better, both increasing market share and performing better than predicted. It still faced a sales decline, but the drop was not nearly as bad as recent months. In another encouraging sign of momentum according to Jersey City Lincoln Mercury, Ford has also noted declines in inventories and will also be increasing production for the third quarter of this year.

Typically, Korean and Japanese automakers have been far more resilient when compared with the Big Three. However, automakers such as Toyota have not been immune to the devastating effects the economy has had on the auto industry. Toyota June sales were worse than predicted. Both Honda and Nissan saw significant sales declines as well, but were relatively aligned with predictions. Continue reading ‘June Auto Sales May Suggest Hope’