Ford Swings To Big 2009 Profit

This just in: the Ford Motor Company has announced that the automaker turned a profit in 2009, registering a $2.7 billion gains thanks in part to significant debt reduction moves and other changes. That is important to note because Ford, like so many other automakers, sold fewer models last year.

Ford’s gain reverses steep losses sustained for the previous three years. Moreover, Ford made money while its two American rivals—General Motors and Chrysler—were overhauled thanks to federal government orchestrated bankruptcies and billions of dollars in loans and grants. Ford avoided government assistance and saw its share of the all important US sales market increase despite fewer cars sold.

Saving Money

Belt tightening played a significant role in helping Ford make a profit last year. But the automaker also rode on the back of several success stories in the form of new models and technologies including, but not limited to the Ford Fusion and Fusion Hybrid, EcoBoost, Lincoln MKT, new Mustang, SYNC, all new Ford Taurus, and numerous product changes and upgrades.

Following the announcement of its profit, Ford management said that it should post a strong profit in 2010 without the benefit of accounting gains. This year Ford will be advancing its One Ford initiative where as many as six European models will find their way to the North American market.

New Models

In 2009, Ford began to import the first of these models, the Ford Transit Connect van. Late this spring the Ford Fiesta will be introduced, its “B” or subcompact segment model. By early next year an all new “C” or compact segment Ford Focus will hit the market followed by a European inspired Ford Escape, new minivan, and one other product.

Ford will also welcome a significantly updated Lincoln MKX later this year. Other models slated to be changed within the next 12-18 months include the Ford Explorer which will transition from an SUV to a crossover.

Big Debt

Ford is still carrying a significant debt load–$34.3 billion to be exact—while they’re also sitting on $25.5 billion in cash. Soon after Ford CEO Alan Mulally came onboard in 2006, the automaker hocked most of its assets to finance product development. That move paid off because when the stock market collapsed in 2008, Ford had the money they needed to press on while GM and Chrysler ran out of cash.

Ford’s gain comes as its chief Japanese rival struggles with a historic recall and product shut down. Toyota is expected to announce its second straight year of significant losses when their fiscal year ends on March 31, a stark contrast to the fortunes of the Blue Oval.

Source: Ford Motor Company

Ford Kuga: Mercury, Maybe?

Ford Kuga...not the Mercury Cougar.

Every time I hear the words “Ford Kuga” I think of “Mercury Cougar” the Lincoln-Mercury coupe that once defined Ford’s upscale brand. Though the translation of the word isn’t certain, I’m almost positive that Kuga isn’t a play on Cougar, despite their similar pronunciations.

New Ford Kuga

The Ford Kuga is a compact crossover that sits on the Ford Focus body, which means that it is slightly smaller than the Ford Escape. The Kuga represents one of six European models that Ford plans to either build or sale (import) in the United States over the next few years, dramatically transforming Ford’s vehicle line, at least at the lower end of the spectrum.

Last week, word broke that Ford will build the Kuga at its Louisville (KY) manufacturing plant and ship some of that capacity back to Europe. The American dollar has weakened considerably of late, making it cheaper for Ford to build the Kuga here and ship it over there.

No Unique Mercury?

Though the Kuga is slated to become a Ford, I think that it is unfortunate that it won’t be sold as a Mercury, at least exclusively. Ford’s people hauler line up is crowded and will only become more so as new models become available for sale. The Escape, Explorer, Edge, Flex and Expedition currently comprise the automaker’s SUV/crossover line up with the C-MAX expected to join the Kuga about the same time – by 2011.

Mercury, on the other hand, has a thin line up. This is in part due to the brand being joined with Lincoln which has been getting all of the “MK” attention of late. MK represents the nomenclature for Lincoln’s newest models which include the MKT, a large crossover and the MKS, its large sedan.

The Mariner, Milan and Mountaineer are the three modern models sold under the Mercury name, along with the aged Grand Marquis a car fit for the livery set. It has almost ten years since Mercury had a vehicle for sale unique to itself when, you guessed it, the Mercury Cougar was sold through 2002. True, the car retailed as the Ford Cougar in Europe, but it had no Ford twin in the United States.

Mulally Backs Mercury

Rumors of Mercury’s demise were rampant a few years back, but chairman Alan Mulally issued a stay, promising to bolster the brand over time. With Ford getting the lion’s share of new products and Lincoln receiving some fresh loving, could the time be approaching when Mercury will benefit with some fresh product exclusive to itself?