Due mainly to the fine showing of Ford’s North American arm, the carmaker has returned to profit and has in fact, recorded a $1 billion profit in the third quarter of 2009. Ford cited its cost cutting measures, increased market share and the US ‘Cash for Clunkers’ scheme. In addition, Ford predicts that it would be “solidly profitable” by 2011. In an interview with the Financial Times, Lewis Booth, Ford’s chief financial officer, said that the biggest improvements were made at the beginning of the year and that the company expects it will have positive cash flow in 2011. Despite this terrific news, Ford faces some setbacks if unions vote against planned reforms. Ford has submitted a proposal to its labor force to ban strikes until 2015, combine job classifications and freeze the pay of new workers. Ford is lamenting the fact that GM and Chrysler have agreed similar deals with their workforces. Ford argues that it needs a similar deal to prevent it being left behind its competitors with higher costs.
