“The auto business is pretty steady and coming back up a little bit,” Mulally, 65, told reporters today at the University of Michigan in Ann Arbor. “We’re right there at the bottom, and if we get this economic development expansion, we’re going to be fine.”
Since arriving from Boeing Co. in 2006, Mulally has revived the second-largest U.S. automaker by bolstering the namesake brand and improving quality. Redesigned models such the Taurus and Fusion sedans helped propel the automaker’s U.S. sales to a 17 percent increase this year through August, double the industrywide gain of 8.4 percent.
Ford was the only major U.S. automaker that didn’t file for bankruptcy last year and didn’t require a government bailout. The company earned $4.7 billion in the year’s first six months, its largest first-half profit since 1998.
“I am so encouraged by the laser focus the administration and the Congress has on additional steps to really get our economy going again after one of the toughest recessions we’ve ever had,” Mulally said. “It’s coming back slower than past recessions, but I know we’ll figure it out.”
Consumer Confidence
Confidence among U.S. consumers dropped to a one-year low in September, according to the Thomson Reuters/University of Michigan preliminary index of consumer sentiment released today. The index fell to 66.6 from 68.9 in August, less than the most pessimistic forecast in a Bloomberg News survey, indicating the biggest part of the economy is being handcuffed by a struggling labor market.
“The pent-up demand is tremendous; the world is really ready to buy a car,” Mulally said. “We just need a little bit more consumer confidence to know we’re growing the economy.”
Barclays auto analyst Brian Johnson yesterday raised Ford’s rating to “overweight” from “equal weight” and said the shares may rise to $16 in a year, $1 higher than his previous target.
Ford rose 5 cents to $12.49 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 25 percent this year
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