If there’s a hotter automotive stock on the planet than Ford these days, I’d like to know what it is. After bringing home $2.1 billion in the first quarter of 2010, Ford’s follow-up act was to bring in $2.6 billion in the second quarter. Just in case you need reminding, they’ve accomplished this in the worst economy in decades, amidst tightening credit.
What’s the secret to Ford’s success? Per Autoblog, it’s the trifecta of restructured (i.e., lower) costs, a dynamic product mix and positive reviews of their automobiles. Imagine that building great cars in all segments and pricing them competitively was all it took for success in the auto business. Who knew?
Ford is enjoying huge increases in truck sales, with F-150 models up 25% for the quarter and Super Duty sales up a staggering 55%. The new Taurus is a big hit as well, and the new model is selling for an average of $6,300 more per vehicle than the car it replaces. The new Fiesta should have a positive impact on Ford’s earnings in Q3, so I anticipate more good news from the blue oval brand in October.