WSJ Tip: How to Get the Best Deal on a New Car
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Detroit could be on the cusp of an upswing, and that could mean big changes for car buyers.
Detroit November 6, 2009; AnnaMaria Andriotis writing for The Wall Street Journal reported that this week, Ford Motor reported its first profitable quarter in North America in more than four years, and new monthly sales suggest the firm is not only benefiting from cost cutting but also a pickup in demand for its cars and trucks. The auto maker said October sales rose 3% over the year-ago period.
The most optimistic interpretation of Ford’s results is that the beleaguered auto industry has finally found its way. But the scope of the rebound remains to be seen. Ford, which posted a third-quarter profit of $997 million, is the only auto maker of the Big Three that didn’t file for bankruptcy protection this year, and its turnaround plan has shown more signs of success than those of Chrysler and General Motors.
One thing is certain: The auto industry is changing, and those changes will have a real effect on the decisions consumers make when buying a car. For example, if Ford’s sales continue to rise, the company could end up raising its prices, as well, says Efraim Levy, an equity analyst who covers Ford at Standard & Poor’s.
