Also in this playlist...
This transcript is automatically generated
Take a look at shares afford the stock is trading down seventeen cents an -- right at thirteen dollars per share the auto -- beating the street was solid profits.
What Clinton and joins us now does wanna -- the man behind the -- of Ford Alan Mulally list thank you very much -- -- coming in net income 2.4 billion but slightly lower from the year ago period which was two point six billion.
Let's bring in the president and CEO of Ford Alan Mulally to talk about this quarter but.
-- I'm more interested in the four recorder that -- currently in at the moment.
You -- did a lot of things in the quarter that just passed you paid down a lot of debt you obviously you're stealing sales away from other car companies she beat analysts' estimates.
But what's the one thing He didn't do that you'd like to achieve in the current and future quarters.
Well I think everybody lives is you know very concerned about the uncertainty.
In the economic environment both in the United States and in Europe and also.
The intentional slow down to fight inflation in Asia Pacific.
And the guidance we gave today is very modest economic growth in the United States going forward.
But we believe that the economy is gonna continue to expand and and we clearly have the products -- people really do want in value so that's the basis.
Of our forecast of -- even improving.
Our 2011 performance over 2010.
OK as you look through the economy through that Ford prism do you feel like Alan that we're in -- -- really muddy part of a soft patch or are we pulling ourselves out and are we growing and with that mean that you would up Q3 production.
Well and we did announce the production for the third quarter and it's a little bit less than the second quarter but.
Year over year it's an increase based on the strength of the product and and the demand.
But you know I think the key thing -- -- is that.
The average age of vehicles is gotten to be nearly eleven years.
But the fuel prices escalating people want fuel efficient vehicles whether -- fiesta our -- this and F 150 we have those.
So we're being conservative but we actually think that we have the vehicles with this market that people really do want value for the rest of this year will.
That's the one thing that work really did it during the height of higher oil and then you continue to do it as oil prices lowered in 2009 and that was that you push for fuel efficiency exactly today.
The president the administration saying that the new cafe or fuel efficiency standards that they are aiming for for 20/20 five would be about 54 point five.
Miles per gallon per vehicle when you see that number Alan do you earlier us and say there is no way we can do that -- -- push back or we you feel that you can achieve.
Those kinds of cafe fuel efficiency standards.
Below is a -- -- comment on the specific numbers are being talked about because clearly we are part.
The solution of designing the fuel efficiency standards going forward.
Just like -- that you covered so well what we did in 2007.
Because fuel efficiency is a reason to buy and we made a commitment to consumers.
But on every vehicle whether they want an F 150 or whether they want to you know dynamite -- Ford Fiesta.
That that every vehicle and every class is gonna have the best fuel efficiency so we're gonna continue to work.
But the government on one national standard that harmonize is on not only fuel efficiency but also CO2 reduction.
And we have one standard for the United States we can deliver that fuel efficiency to our customer.
So let me push a little bit on this -- -- -- cuts have smart engineers but when I saw that number of me I'm -- for fuel efficiency but they're almost 55 miles per gallon.
That that's a Quantum -- -- and that it could you would she is it I guess is what I'm thinking you know if you can believe that you can do what they say but -- -- doing.
Well we have a number of vehicles today that are over forty miles per gallon -- as you well know and part of it is the mix of vehicles and as we move towards towards having a really robust balance portfolio.
A small medium and large cars -- -- -- That gives Ford a real advantage to be able to.
Improve the vehicles that at the -- so we're talking about with with the with the government.
Why I believe him in US ingenuity so I'm going to I'm going to go with that think that's probably do it let me go to your workers UAW labor contract expires -- September 14.
The discussions Begin -- this week.
This brings us to the workers out there at the UAW president Bob king is saying that.
The UAW is done granting concessions they feel that they gave enough during the financial crisis and they feel that you know what.
Now that the company has pulled itself out and and the -- shot and a little more brightly and and UN and of course.
Bill Ford deservedly so got big cash bonuses they feel that you know what.
It it brings a little hollow for -- to ask us to make more concessions to -- you guys really look at labor laborers discussions at this point.
I know a lot of it is proprietary at the moment but you think the come to a deal.
I sure I sure think so -- and I think you really really hit hit the main point is that we are in a completely different place.
Then -- we were five or six years ago where we were losing market share and losing money.
And we are now -- will be growing the business has as report again today in the second quarter.
We've also announced that we are going to be hiring 7000.
New employees great jobs great careers.
We're exporting the vehicles now more than ever that new explorer at a Chicago is going to be export of 93 different countries.
We're actually creating jobs along with great vehicles and a strong business so.
Everything about these conversations had been how do we continue to improve the competitiveness of -- every element of competitors.
Because we are together creating.
He profitably growing company for the good of all us and that's the focus of our.
Negotiations again and and not not degree continue to improve our competitiveness -- and that actually grow the business for the good of all of us.
At just super quickly the death sailing do you think -- really have to raise -- and then deal with the other issues in this nation.
Well the debt ceiling this clearly one tactical issue in the near term but.
I think it's so important what the conversation is is dealing with that the budget deficits in addition to the trade deficits but also.
More and more the conversation now is what are we gonna do collectively.
To create an environment where businesses can grow and expand.
Because that is the key for the United States.
And all of us going forward.
Alan Mulally president of Ford on these numbers better than expected thank you so much and and will of course is always watch the fort story thank you Alan.
Thank you list.
And Cherilus send it back to you but again -- -- it -- a couple of issues years the labor contract.
That is ahead of them the matters and of course how did they meet those cafe standards in the future certainly a stock default all of us throughout the afternoon -- -- from the newsroom thank you very much -- thanks Alamo well.
Filter by section