Summary Box: Ford product investment cuts profit

AP News
Posted: Jul 26, 2011 2:02 PM

PROFIT FALLS: Ford Motor Co. earned $2.4 billion in the second quarter as global sales rose 7 percent, but its profit was down 8 percent compared with a year earlier.

THE REASON: The company spent $400 million more than it did last year to engineer and advertise new vehicles, especially in China and India, where it plans to roll out 15 cars in the next four years.

NEXT MOVE: Chief Financial Officer Lewis Booth said that after three years of restructuring and the recession, Ford is strong enough to invest more heavily in its future.