Arthur Wheaton, an expert on the automotive industry and senior extension associate at Cornell University’s ILR School, is available to discuss Ford’s quarterly earnings and the automotive industry in general.He says:
“The Ford earnings for the third quarter were better than many expected, but such quarterly earnings reports do not give a full picture of the progress being made at Ford. The actual situation is more complicated.
Wheaton says, “Ford's monthly sales reports are not robust, but it has been better able to keep incentives and discounts lower than previous years, making higher profits per sale. Going forward, Ford may lose some sales for lack of discounts – but the resale values and profits per vehicle are strategically more important. Ford also has been aggressive in cutting capacity in Europe. These very difficult and painful decisions are necessary for long-term success.”
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