hey, deflationistas- Mulally Spurs Ford Growth With $2,700 More Revenue per Vehicle

[jk]

Mulally Spurs Ford Growth With $2,700 More Revenue per Vehicle
Nov. 3 (Bloomberg) --

Ford Motor Co. Chief Executive Officer Alan Mulally, after cutting nearly half the automaker’s North American employees, is commanding $2,700 more revenue per vehicle as he looks to put the company on a path to growth.

Mulally posted his first back-to-back quarterly profits at Ford yesterday with a $997 million net income. The carmaker was expected to make a $632 million loss, based on the average of eight analyst estimates. Ford’s U.S. market share grew even as it cut discounts, delivering $1.9 billion in additional revenue, 74 percent of it in North America.

That progress, boosted by Consumer Reports magazine declaring Oct. 27 that Ford’s quality is now “world-class,” had a bigger effect on the bottom line than the additional $1 billion in savings the automaker recorded in the quarter. New models, like the redesigned Ford Taurus and Fusion sedans, also sold with more options, like voice-controlled audio systems.

etc

http://www.bloomberg.com/apps/news?p...YFJv8HA&pos=12

btw, "cut discounts" = raised prices

[GRG55]

Re: hey, deflationistas- Mulally Spurs Ford Growth With $2,700 More Revenue per Vehicle

Mulally Spurs Ford Growth With $2,700 More Revenue per Vehicle...


...btw, "cut discounts" = raised prices

"cuts discounts" means subsidies provided by the taxpayer [Cash for Clunkers] instead of the company [Rebate programs]

I'm reserving judgement until we see what sort of auto market and manufacturers margins are achieved without all the distortions...

However, I do agree that whatever "deflation" we see in the retail auto market is going to come about because of "substitution" [to less expensive vehicles] and other data management outcomes showing up in the govt stats.