Meltdown 101: Ford Has Suffered Less Than Rivals

Ford Motor Co. has been riding a wave of positive public sentiment since it steered clear of bankruptcy protection and avoided taking federal bailout money — unlike its crosstown rivals, General Motors Co. and Chrysler LLC.

Worldwide market share is up. And at least two analysts are predicting a quarterly profit for the automaker, which is releasing its third-quarter earnings Monday.

But headwinds persist, including weak U.S. sales and labor troubles.

How has Ford managed to outperform its Detroit competition — and what challenges lie ahead? Here are some questions and answers.

Q: What is Wall Street expecting Ford to report for the third quarter?

A: That depends on who you ask.

Analysts surveyed by Thomson Reuters were predicting a loss of 13 cents per share, compared to a loss of $1.31 per share in the same quarter a year ago. But J.P. Morgan auto analyst Himanshu Patel predicts a profit of 16 cents per share, citing higher production, healthier margins and lower incentive spending.

Ford reported a surprise $2.3 billion profit in the second quarter, mainly due to debt reductions that cut annual interest payments. Ford says it aims to return to a full-year profit in 2011. The company lost more than $14.6 billion in 2008 and hasn't posted a profit since 2005.

Q: How did Ford escape bankruptcy protection and federal aid, unlike GM and Chrysler?

A: In 2006, Ford mortgaged its assets — including plants and its blue oval logo — for $23.4 billion to fund its turnaround plan. The credit markets later froze, making it impossible for its rivals to obtain similar financing.

Q: What else sets Ford apart from its domestic competitors?

A: Ford gets consistently solid quality and reliability rankings.

The automaker won kudos last week with the release of Consumer Reports' 2010 vehicle reliability rankings. The Ford Fusion and Mercury Milan midsize sedans beat out Toyota Motor Corp.'s Camry and Honda Motor Co.'s Accord, and 46 of 51 Ford vehicles had average or better reliability.