This year, Ford Motor Co. has maintained its lead when it comes to global profits but what’s more remarkable is that General Motors Co. has overtaken Toyota Motor Corp. to take second place. Amid the continuing increase in global sales for the industry, GM posted a third-quarter net income of $2.16 billion, pushing its earnings this year to $4.77 billion.
Meanwhile, Toyota reported a $4.46 billion profit in the nine months ended Sept. 30. These figures are based on data compiled by Bloomberg. IHS Automotive and J.D. Power & Associates estimate that the industry has benefited from global sales that may exceed 70 million vehicles this year.
During the global recession, carmakers have cut brands, shut down factories and terminated workers. And now as demand is recovering, these carmakers are positioning themselves for higher profit.
Alan Baum, principal of Baum & Associates, an industry consultant in West Bloomfield, Michigan, said that the automakers are enhancing their top line and cutting costs, and “that flows to the bottom line.”
He clarified that Toyota is not anymore the “go-to auto company” for buyers who are looking for a reliable and safe vehicle. This year, Ford has posted earnings of $6.37 billion – more than double its full 2009 profit of $2.72 billion.
Autodata Corp. said that Ford's new Fiesta subcompact and Super Duty versions of its pickups are being sold at higher prices and this had aided in widening its market share in the US by 1.5 percentage points through October. [via autonews - sub. required]