Ford in better shape after GFC: CEO

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Ford in better shape after GFC: CEO

19/12/2009 8:06:01 AM

The economic storm that battered the US automotive industry has forced Ford Motor Company into a better position, chief executive Alan Mulally says.

Ford has undergone an intense restructuring in recent years that has left it a leaner and more focused company.

"We're on a clear path to profitability now," chief executive Alan Mulally told reporters on Friday. "It's probably in the strongest position it's ever been in."

Mulally noted that 2009 was an intense year for the automobile industry - particularly in Detroit where Ford rivals General Motors and Chrysler declared bankruptcy after a massive government bailout - but said the prospects for 2010 are improving.

"We feel a lot more confident about the economy," Mulally said.

Ford managed to finance its restructuring without resorting to government aid and also escaped bankruptcy protection.

But it was unable to gain all of the concessions awarded to GM and Chrysler by the United Auto Workers union.

Mulally said "we're not disadvantaged" by the situation and noted that Ford had "a long history of working with the UAW between contracts".

The automaker declined to comment on news that GM will be winding down Saab after its second attempt at a sale of the Swedish mark fell through.

But chief financial officer Lewis Booth said the problems at Saab will have no impact on Ford's planned sale of its Swedish brand, Volvo.

"We're still continuing to negotiate with (Chinese automaker) Geeley (Automobile Holdings) and we're committed to selling Volvo," Booth said.

"Volvo will be sold."

http://money.ninemsn.com.au/article.aspx?id=985711