| So far, so good. That was the message that the | | | | operations over last year. We have three quarters to |
| Ford Motor Co. is trying to convey in connection with | | | | go and the quarters are lumpy. There are lots of |
| its first quarter earnings. Ford CEO Alan Mulally said, | | | | moving pieces through the quarters. Then |
| "'We exceeded our expectations across the board." | | | | year-over-year it can be a tough comparison because |
| Those expecting more bad news were astonished by | | | | the plan is to go down in production - you know, to |
| Ford's better-than-expected sales results with a net | | | | the lower demand and the changing model mix. But |
| loss of $282 million that surpassed Wall Street's | | | | clearly even with all of the headwinds we are facing, |
| expectations and triggered a diffident rally in the | | | | our best estimate is that we will actually improve the |
| automaker's stock. This is the Ford's way of saying | | | | automotive operations this year, the first year of our |
| that it is back to profitability. But the battle has just | | | | turnaround," Mulally noted. |
| begun. | | | | Mullaly, formerly Boeing's CEO, has been with Ford in |
| The automaker said that it lost $282 million in the | | | | the past six months. When asked about his biggest |
| first quarter of the year - a noteworthy | | | | frustration, he answered: "I don't have a frustration. |
| improvement from its $1.4 billion loss a year ago. | | | | It's hard work and you've got a lot of people |
| Ford's first quarter revenue totaled $43 billion and | | | | involved. This is just such a positive indicator that the |
| that amount is up from the $40.8 billion in the | | | | plan is working." Ford has been busy checking on the |
| previous year. | | | | quality of the Volvo distributor rotor and other auto |
| In an interview Mulally intimated, "We exceeded our | | | | parts. This is to ensure outstanding customer |
| expectations across the board, meaning across all of | | | | feedback. |
| our brands and across all of Ford operations. | | | | He added, "This is a wonderful transformation of a |
| Across-the-board improvement. Improvement on the | | | | great company and it didn't do anything wrong, it |
| revenue side and also improvement on the | | | | was focused on big SUVs and trucks. The world |
| productivity and the cost side. And that's why we're | | | | changed. People want a full product line, delightful |
| very encouraged about this. Because our plan | | | | cars, fuel-efficient, reliable, great quality across the |
| addresses the restructuring on the cost side and the | | | | entire family. And that's what we put in place, to |
| quality side, but also with the acceleration of new | | | | aggressively restructure and (adapt) to the changing |
| product it addresses the revenue side. So to see | | | | world and get back to profitability and to accelerate |
| these results gives us a lot of confidence that we | | | | new product development. And to see - for |
| have the right plan." | | | | everybody to see - that this plan is working gives a |
| When asked about the areas the automakers did | | | | lot of encouragement to keep going." |
| worse than expected, Mulally said they do not have | | | | When asked about his meeting with the Ford family, |
| an area that they did worse. He added, "One kind of | | | | Mulally simply said, "I had the pleasure to meet with |
| neat thing that came out - maybe we didn't share it | | | | them and I just gave them an update on the |
| as clearly as we could - creating a viable Ford Motor | | | | business. And their message I think was that they |
| Co. and this transition is not just about the Blue Oval | | | | were very supportive." |
| in North America. This is about all of our operations | | | | In regard Mulally's meeting with the employees, the |
| worldwide and all of our brands. And our plan is to | | | | CEO said, "It was a very gratifying meeting. I had a |
| improve our quality and our productivity and make | | | | chance to share our story and the progress in each |
| cars and trucks that people want across the entire | | | | of the areas of the world and each of the brands. |
| Ford operations. And part of what you saw today | | | | We had about 400 people here in Detroit and then |
| was that plan working. Not only did North America | | | | we were netted with everybody else around the |
| exceed their plan, everybody did. Which is a great | | | | world. Of course it's a great story to be able to |
| story." | | | | share because it represents all of their hard work. He |
| "With the guidance that we have given - the reason | | | | concluded, "And to see their smiles and hear their |
| that we went through that very carefully - it's a very | | | | great questions about the business and going |
| good story that through 2007 year-end we believe | | | | forward and the transformation. I thought it was a |
| that we are going to improve our automotive | | | | terrific meeting. |