Ford makes $2.6 Billion on Q2

Ford has some serious momentum going right now, and this can been seen in many different areas.  Transaction prices for their cars are up, as well as sales totals.  The Fusion is definitely the most popular domestic car in its segment, and the stalwart F-150 continues to sell in big numbers. 

Look for Ford to continue this momentum with the launch of the Explorer next week and the upcoming compact Focus.  Both look to be very competitive offerings that will fetch higher average prices than their predecessors.

Still, the Blue Oval has a number of holes in its armor.  It has just announced the dissolution of the Mercury brand, a wise move considering every single car is a clone of a more popular Ford.  This will most certainly lead to conflict with dealers, though not to the extent of GM's woes when they cut Pontiac, Saturn, Hummer, and Saab.

The Lincoln brand is also a bit of a mess.  They've been unable to stay relevant next to Cadillac, to say nothing of competing with the German marks.  And like Mercury, their vehicles are all based on Fords which can be had for less money.

Then there is the issue of Ford's massive debt load it took on before the liquidity crisis.  This did allow them to avoid bankruptcy, but they must now deal with huge interest payments that Chrysler and GM don't.

Here' to hoping Ford can continue to make money in an ever more competitive auto industry.

[Businessweek]