Ford changes its focus from restructuring to expanding

Article by Christian A., on June 7, 2011

Ford Motor Co. is changing its focus from restructuring to expanding and predicts that by 2015, its worldwide sales will increase by 50% to 8 million vehicles each year. Ford is relying on the expected growth in Asia and the rising demand for small cars to boost sales.

In an interview in New York, Chief Financial Officer Lewis Booth said that in the past decade, Ford has proven that it was good at restructuring but he claims that growth is a “new skill” and “takes practice.”

According to CEO Alan Mulally, by 2020, small cars will account for 55% of vehicle sales and the Asian market will make up a third of sales.

He explained that to achieve this ambitious target, Ford has laid a “tremendous foundation.” Ford executives went to Wall Street and said that by 2015, total Automotive debt will decrease to about $10 billion.

This is a considerable drop from $16.6 billion at March 31, 2011 and from $33.6 billion at the end of 2009. Ford is hopeful that in the near future, it will return to investment grade and go back to paying dividends after "at an appropriate level of after-tax earnings."

From posting 6.1% in global automotive operating margins in 2010, Ford anticipates that it will increase to 8 to 9% in 2015. In addition, Ford expects that its operating margin in North America will be in the 8% to 10% range by 2015.

Topics: ford

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries