Ford Turnaround Plan Pays Off

By J. Kelman,  Newser User
Posted Apr 26, 2007 10:59 AM CDT
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(Newser) – A loss is a win for Ford this morning, as the company's shares soared nearly 10% on smaller-than-expected first-quarter losses. Investors see the $282 million net loss—down from $1.4 billion in first quarter 2006—as a sign the company's ambitious turnaround plan is on track.

CEO Alan Mullaly has led a massive restructuring effort—cutting jobs, closing plants, and revamping the company's most popular lines—that is apparently starting to reap benefits. Revenue went up nearly 5%, even as sales volume fell, thanks in part to record profits at Ford's luxury group, which manages Jaguar, Land Rover and Volvo.