Ford reported that it netted $2.6 billion in the past quarter, due to the increase in demand for ‘green’ cars and the slowly improving US economy. Additionally the fact that gas prices have been steadily increasing since the unrest in the Middle East has spread, has also stimulated demand for greener vehicles.
According to the Guardian, the company is leading the charge in posting “post-financial crisis highs.” While the US economy has still not completely recovered, companies in the auto-manufacturing sector such as Ford and General Motors have been receiving deserved attention for their impressive recoveries since the financial crisis.
On this news, the Dow Jones Industrial Average is nearing three-year highs, which is additionally stimulating confidence in investors on the FTSE 100 in London. Consumer sentiment in the United States and the United Kingdom appears to be reacting to the encouraging data on the status of the economic recovery.
The news from Ford appears to be part of a broader trend of consumers moving toward smaller vehicles. Apparently, because the demand has increased for these cars, the price has risen from an average price of roughly $30,000 last year to $31,000 this year, according to the Guardian.
The resurgent auto manufacturer credits its strong quarter largely to its enhanced distribution in global markets, particularly in Europe, South America, Asia, as well as Africa. These encouraging signs has led the company to project a 12,000 vehicle increase in their manufacturing output for the second quarter. Specifically, due to the Japan crisis, Ford sees an opportunity to fill the gap in the market.
While these signs are admittedly encouraging about the status of the global economic recovery, analysts warn not to rush the judgment. Tomorrow, it is anticipated that the Federal Reserve Board Chairman, Ben Bernanke, will deliver remarks in a press briefing. Interestingly, the Chairman’s timing is slightly anomalous in the respect that he will deliver these remarks directly after his meeting with the Federal Reserve Open Market Committee, which is in charge of adjusting the US interest rates.
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