Don't get too happy about Ford's running a profit in the second quarter
July 26, 2007
When I saw the news story about Ford running a profit for the second-quarter, I was momentarily so happy that I almost put another scoop of Crasins on my oatmeal.
Living here in the heart of Michigan, the drumbeat from the auto industry has sounded more like a death knell. In Lansing a few years ago, GM's Oldsmobile brand was king. Everybody drove them and just about everybody in the middle class could afford them.
Now Oldsmobile is gone. It's like the repo man came in and stripped the town of any evidence that Lansing was the home of Olds. There's at least a generation of kids who couldn't tell a Olds 98 from a Toyota Camry.
That's why I was elated about Ford's news that it ran a $750 million profit for the April-June quarter. Granted there were special items to pump up the results, but on an operating basis, there was still a $258 million profit.
Today's news story says that Ford still has lower sales in the United States and that the profit reflected activity overseas.
Hmmm...so I guess today's news is not necessarily an omen of good things from Ford. Hopefully, it's pointing in a positive direction.
Technorati Tags: ford, alan mulally, auto industry, general motors, oldsmobile, lansing, michigan
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