News Flash: Capitalism Works (part II)

See my previous blog posting on this subject here.

According to numerous news websites including www.businessweek.com, Ford reported a 43 percent increase in sales from the previous year. In fact, because of Toyota and now GM recall woes, Ford became the #1 US seller of cars. How long that will last is anybody's guess.

That represented 18.2 percent of all cars sold in the US, with GM turning in 18.1 percent. However, GM only posted a 12 percent increase, largely due to the fact that GM with all of it's brands has a much larger market space.

However, with Ford posting a 2.7 billion dollar profit fourth quarter 2009 shows something else. Quality and efficiency are up significantly, and Ford is effectively meeting the needs of the new consumer who, scared by high gas prices, are trading SUVs and trucks for efficient sedans and coupes.

In other words, Ford is continuing to provide the customer with a high quality product at a price the consumer is willing to pay. Ford is also hiring again, as is GM, although they are hiring newer workers that will work for less than the retirees that they are replacing. Both Ford and GM are rehiring laid off workers as well.

Capitalism works.