Ford, a year ago in danger of being dragged down with a collapse of its nearly bankrupt Detroit rivals, is projected to report nearly $1 billion in first-quarter profits Tuesday, the strongest indication yet that the U.S. auto industry is bouncing back more quickly than expected. The expected profit announcement will follow news last week of General Motors' early repayment of $5.8 billion in government aid and word that Chrysler is on the path to break even this year.
Though taxpayers might never be fully repaid the nearly $85 billion in aid they provided the industry, and a singed Michigan must move aggressively to diversify its economy, a more optimistic outlook is sweeping through parts of Detroit's hallmark automotive sector.
"A year ago at this time, we were fearful General Motors would fail and take the whole industry down with it," Bill Ford, executive chairman of Ford Motor, told the Free Press on Thursday. "What a difference a year makes."
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said the industry is at the cusp of "a really significant turnaround point," noting that it came "much faster than I think most people anticipated."
Business at Ford, which bypassed federal assistance, hasn't been stronger since the SUV craze collapsed. Customers increasingly prefer Ford's high-quality, technology-loaded, fuel-efficient cars, leading Ford to gain market share in the U.S. and Europe.
But Bill Ford says his great-grandfather's company has learned some hard lessons and won't return to the days of self-celebration.
"We're very pleased but very cautious," Ford said. "I know how quickly things can change, and I know how quickly self-satisfaction turns into self-destruction."
