Ford Motor Company recently reported a $12.7 billion loss for’ the year of 2006, a record-breaking low for the domestic automaker.’ Of course, this comes in the wake of the news that GM made a profit of $1.9 billion in the third quarter of 2006, and it is expected that they also turned a profit for the fourth quarter.’ What is GM doing right that Ford is doing wrong?’ The answer, as I understand it, is not much; with time, Ford too will turn a profit.

In the past year alone, Ford undertook two restructuring plans and laid the groundwork for a slew of new vehicles to be introduced, something GM did just a couple of years ago.’ What’s worse, $9.9 billion of that $12.9 billion loss was the cost of buyouts and plant closures.’ It wasn’t too long ago that Chrylser and GM were in the same boat, only to be much better off in the years to come.

Now that this bad year is behind us, Ford has a lot to look forward to.’ With a newly-designed 3.5-liter V6 and six-speed automatic transmission, Ford management is getting eager to put this new equipment in just about any car that will fit it, from the aging Freestyle to the Five Hundred to upcoming Lincoln models.’ Speaking of Lincoln, Ford showed some exciting concepts at the Detroit Auto Show a few weeks ago, hinting at a revitalized line making its way to the market place by late next year.

Volvo, a Ford subsidiary, is wowing crowds with the redesigned S80 and new C30 sedans, and is close to releasing an inexpensive XC60 crossover SUV to compete with the likes of the Acura RSX.’ Mazda had a great year, leading a top reliability survey and selling a great number of Mazda3s and CX7s, both of which have been great hits with consumers and critics alike.’ Later this year, we can look forward to the CX-9 and a redesigned Mazda6, which promises more power for a car already praised for a tight ride.

Even Aston Martin is turning a profit.’ Jaguar, admittedly, is in a bit of trouble.’ But rather than providing the same old recycled designs that have failed Jaguar so miserably in the past decade, the XF concept (slated to become the replacement to the entry-level X-type sedan) is a bold and refined car that is finally adequately powered.’ Many pundits are hopeful that new cars like the XF could be the silver bullet that save Jaguar after years of languishing as a failed brand.

There is also talk on the grapevine that the Ford Explorer, one of the company’s best sellers, will change its focus and become a car-based crossover.’ A crossover Explorer, with decent gas mileage and a smoother ride, would definitely be a hit in today’s changing market.’ It sold like hotcakes despite the fact that it rolls over, gets very poor mileage, provides a so-so ride, and has a notoriously horrible transmission that upshifts all too eagerly.’ If they actually built an Explorer that was up to snuff, I have no doubt that people will line up in droves to purchase one, as they do for Honda Pilots and Toyota Highlander.

2007 is going to be a great year for Ford, and I predict that late in the year, we are going to see profits for the first time in too many years.’ I argue that domestics are in fact not dying.’ They are simply making the organizational and product changes that they need to in order to survive with such harsh competition from their Japanese rivals.’ Not only will domestics make a comeback, they will do it with one hand tied behind their backs – Japanese automakers make an average of $2900 profit per car more than their American counterparts, which can be explained almost exclusively by ‘legacy costs.” America is back, and we’re ready for action.