Ford reports an exceptionally strong first half of 2010 and causes optimism for the U.S. auto industry.

• Ford’s second-quarter earnings were much stronger than expected and the company is on track for “solid profits” in 2010.
• Ford plans to discontinue its Mercury brand and sell Volvo to China’s Geely in the 3rd quarter because it wants to focus on mass marketing Ford and Lincoln brands.
• Ford was the only large U.S. automaker to avoid bankruptcy in 2009, and is therefore in greater debt than GM and Chrysler.
• Ford paid back 7 billion dollars of debt in the 2nd quarter (now $27.3 billion in debt) and plans to continue debt reduction.

Facts & Figures

• Second-quarter net profits were $2.6 billion, compared to $2.26 one year ago.
• Ford revenue increased by $4.5 billion to $31.3 billion.
• This is the 4th consecutive quarter that Ford has reported profits.

Best Quote

“We delivered a very strong second quarter and first half of 2010 and are ahead of where we thought we would be despite the still-challenging business conditions.” -Alan Mulally, Ford Motor Co., Chief Executive

Tags: auto industry, automotive, cars, debt, earnings, economy, Ford