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Ford could be turning the Corner


Monday, February 15th, 2010

The past five years have been brutal for the big three, as they have been squeezed by changing market demographics, because of high oil prices. As a result, several high profile bailouts were given to GM and Chrysler, with many worried that Ford would be next. However, it appears as if Ford could be in the process of rebranding its image as a green car company. What is happening is: Ford is set to begin selling multiple models that are either hybrid or electric vehicles in 2011. With the company announcing, that their troubled Mercury brand will begin selling one hybrid model next year. Combine this with the fact, that the company has been showing dealers how they can increase their overall profits by going green, is only evidence that a major turnaround is taking place. This is significant, because for the first time in over five years, Ford was able to stop the hemorrhaging that was occurring in auto sales. As profits, were 15 times higher at the various dealers in 2009, than they were in 2008.

What this shows, is that after struggling for years to figure out how to reinvent itself. It appears as if, Ford could have finally begun to produce the cars that are in most demand. This will help the company over the long run to change its image; which is the key to being able to attract the younger demographic, in key markets such as: the East and West coast. If Ford continues with their strategy, they could quickly emerge as one of the world's strongest auto makers.

 



Article by Chris Seabury

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com