Small Cars Contribute Huge In Ford's Profits

Published: Monday, May 30, 2011, 12:23 [IST]

The Ford Motor Company on tuesday reported its best first-quarter earnings since the last 13 years. The popular truck maker has proved that it is one of the best car manufacturer by coming up with small fuel efficient cars.

In its first quarter Ford has earned $2.55 billion which is a 22 percent increase from its previous. The strong transformation has finally paid off with the significant profits through the sale of its small cars. Ford has been quite successful in convincing its customers with the sub compact car like Fiesta.

According to the Quarter results, Ford has acheived a profit of about $1,519 on each vehicle, an overall increase of 59 percent compared to the year earlier period. The growth rate, according to consulting firms, is not because of the idea of economic small cars but because of the unique features and options which none of its competitors feature.

The company's average sale price in the US has improved to $2,515, reports TrueCar.com. And Ford"s pretax earnings in North America is up by 50 percent, to $1.8 billion. Globally, the revenue rose 18 percent, to $33.1 billion.

Meanwhile, the shares which had Shares of Ford, which slid to 17 percent rose to 12 cents to close at $15.66 on Tuesday.