Ford CEO Expects Solid Profits for 2010
By wchung | 21 Mar, 2026

Ford’s chief executive said the second-largest U.S. automaker should be “solidly” profitable in 2010 as it recovers from a sharp downturn in the car industry.

Speaking to shareholders at Ford Motor Co.‘s annual meeting in Delaware on Thursday, Alan Mulally said the company should also see “continuing improvement” into 2011. But executives would not say when the company will reward shareholders by reinstating a dividend.

Mulally’s predictions follow four straight profitable quarters for Ford, which has rebounded better than most rivals from a historic plunge in auto sales during the recession. Ford posted staggering losses in 2008 and early 2009.

Mulally said an improving economy will help the automaker this year and next. It will also get a boost from the release of new products this year, such as the Focus subcompact in the United States.

“Ford has the right plan to lead us through the near-term economic and operating pressures, and continue to deliver profitable growth,” he said.

The automaker has seized market share from rivals General Motors Co. and Toyota Motor Corp. in the past year, with well-reviewed new models.

But there are no clear plans to reinstate a dividend despite recent profits. Ford last paid a quarterly dividend in 2006. Executives said they are focused on shoring up the company’s balance sheet.

“It is the very early days in our recovery. We still have a lot of debt,” said company chairman Bill Ford Jr.

Ford’s debt totaled $34 billion at the end of the first quarter — putting it at a disadvantage to GM and Chrysler, which shed much of their debt in bankruptcy court last year.

Bill Ford acknowledged that competitors enjoy a lower cost of credit, but he did not envy that they were propped up by government bailout money.

Asked whether Ford risks becoming complacent, Bill Ford said that the current recovery is different from past ones. Instead of trying to drive up sales of existing cars and trucks, Ford has rebounded through deep restructuring and development of new products.

“The fact that we were able to make money last year in the worst car market in 18 years shows that this is different,” he said.

The chairman also said the company would like Mulally to stay “as long as he wants” in response to a shareholder question about whether the CEO will retire.

Mulally, 64, has led Ford since 2006, seeing it through the industry’s downturn and the current recovery in auto sales.

Ford faced questions over its investments with Goldman Sachs following government fraud charges against the bank over its packaging of mortgage securities.

Lewis Booth, Ford’s chief financial officer, said Goldman accounts for less than 20 percent of Ford’s investment banking business.

Ford shares were unchanged at $12.68 in midday trading.

STEPHEN MANNING, AP Business Writer WILMINGTON, Del.