Detroit News
Dearborn automaker focuses on core; recall pulls competitor off track
It wasn't very long ago that Ford Motor Co. was in the spot Toyota Motor Corp. finds itself now: struggling with recalls, bad publicity and financial losses. Today, the two automakers appear to have switched places.
Ford is on top of the U.S. auto industry. Its laser focus on its North American business and core brands helped the Dearborn automaker generate its first full-year profit since 2005.
After reporting annual net income of $2.7 billion for 2009, Ford Chief Executive Alan Mulally on Thursday predicted the company would earn money again this year, achieving sustainable profitability well ahead of schedule.
Mulally described 2009 as a pivotal year for Ford, the only U.S. automaker to get through a horrendous industry downturn without going bankrupt.
It was a pivotal year for Toyota, too. The Japanese automaker lost money for the first time in 59 years, and expects to lose money this year. Now Toyota is grappling with a pair of damaging recalls involving sudden acceleration that threaten its once sterling reputation for safety, quality and reliability. Even as Toyota said Thursday it is close to a fix for the latest recalled models, Congress called a hearing for Feb. 25.
Toyota's woes may be the result of its push to become the world's biggest automaker. In its quest to overtake General Motors Co. -- which it did in 2008 -- Toyota may have expanded too much and too fast. In a once unimaginable scenario, some of its American customers are nervous when they get behind the wheel of their Toyotas. Toyota says it's doing everything to recapture their confidence.
The industry upsets highlighted this week serve as a reminder that in the auto business, companies can spiral from winners to losers in a very short time -- and recover again.
It wasn't very long ago that Ford Motor Co. was in the spot Toyota Motor Corp. finds itself now: struggling with recalls, bad publicity and financial losses. Today, the two automakers appear to have switched places.
Ford is on top of the U.S. auto industry. Its laser focus on its North American business and core brands helped the Dearborn automaker generate its first full-year profit since 2005.
After reporting annual net income of $2.7 billion for 2009, Ford Chief Executive Alan Mulally on Thursday predicted the company would earn money again this year, achieving sustainable profitability well ahead of schedule.
Mulally described 2009 as a pivotal year for Ford, the only U.S. automaker to get through a horrendous industry downturn without going bankrupt.
It was a pivotal year for Toyota, too. The Japanese automaker lost money for the first time in 59 years, and expects to lose money this year. Now Toyota is grappling with a pair of damaging recalls involving sudden acceleration that threaten its once sterling reputation for safety, quality and reliability. Even as Toyota said Thursday it is close to a fix for the latest recalled models, Congress called a hearing for Feb. 25.
Toyota's woes may be the result of its push to become the world's biggest automaker. In its quest to overtake General Motors Co. -- which it did in 2008 -- Toyota may have expanded too much and too fast. In a once unimaginable scenario, some of its American customers are nervous when they get behind the wheel of their Toyotas. Toyota says it's doing everything to recapture their confidence.
The industry upsets highlighted this week serve as a reminder that in the auto business, companies can spiral from winners to losers in a very short time -- and recover again.
No comments:
Post a Comment