Ford Posts 1 Billion Dollar Profit, Predicts More Profit in 2011

Ford Motor Company is not out of the woods by any stretch of the imagination, but it appears that some top-level vision and shrewd management decisions will allow the company to avoid the fate of GM and Chrysler. Ford, in fact, may be in position to thoroughly dominate the U.S. auto industry in the years to come. After managing to avoid bankruptcy and federal bailout money through restructuring debt and mortgaging assets in advance of the credit freeze, Ford is now realizing its first quarterly profit since 2005 and it believes that its prospects are improving faster than they had anticipated.

Ford now describes the outlook for 2011as likely to be "solidly profitable." The most recent quarterly gains are largely attributed to cost cutting measures more so than large gains in sales. However, the company did acknowledge that the Cash for Clunkers program was a boost to sales over the end of the summer.

It also appears that Ford has managed to gain the trust of the American consumer, perhaps as much by "not" being GM or Chrysler as by doing anything special on their own. But to Ford's credit, it's models are selling well in the U.S. and were among the most popular vehicles purchased during the Cash for Clunkers program.

With GM still struggling and Chrysler seemingly out of the picture, it appears that Ford is once again the dominant player in the U.S. auto industry. The company that started it all is now in position to regain its original stature and hopefully lead the U.S. auto industry into an era of innovation and sound management practices.