Ford has made its first quarterly profit in two years, but continues to lose money in its main US market where it said it probably will not be profitable until at least 2009. The carmaker is in the middle of a restructuring plan that includes closing 16 plants and cutting up to 45,000 jobs. In the past year, over 30,000 production line workers have taken pay-offs or early retirement packages.
Ford’s chief executive Alan Mulally said the profit is “something to be proud of” but investors should not think that Ford has turned the corner to consistent profitability. The second quarter worldwide profit of 547 million euros follows a loss of 213 million in the first three months of the year. For all of last year it lost nine billion euros.
On its plans for Jaguar and Land Rover, Ford said talks continue with “selected parties” who have expressed an interest in buying them, but added that there is no guarantee it will agree to a sale. Ford’s Premier Automotive Group, which includes Jaguar, Land Rover and Volvo, made a 101 million euro profit in the second quarter.