Bill Pierre Ford

Ford second-quarter results were just one more sign that the automaker is riding a wave — better cars, a positive image that respects its traditions and, of course, the bankruptcies that befell its two U.S. competitors.

In afternoon trading, Ford shares were up 9.7% at $7. For the year, they are up 67%.

“The results today show we are making progress on customer satisfaction, revenue, margins (and) fundamental restructuring,” said CEO Alan Mullaly on an earnings conference call.

“Consumers are much more aware of Ford, moving to consider and buy Ford: they really appreciate the full product line,” Mullaly said. “They believe that Ford is really building a strong business.”

Mullaly is “more confident than ever that we have the right plan” and reiterated that Ford expects to be profitable in 2011, but resisted when an analyst questioned whether the profits might come sooner, saying, “This is still a very fragile economy.”

While Ford said Thursday that it expects economic improvement in the second half, UPS(UPS Quote) was saying it sees no sign of improvement during the current quarter.

Ford’s outlook is not without headwinds. “What we are not committing to is (that) third quarter will be sequentially better than second quarter,” said CFO Louis Booth. “We are not guaranteeing we will be able to meet the sequential improvement.”

Booth said capital expenditures, down a bit in the second quarter, will rise in the current quarter, and noted that cash flow will decline in the second half, relative to the first half. Ford Credit had a strong second quarter that is unlikely to be replicated in the near term, he said, Additionally, Ford has increased production levels, betting on a recovery. “If we don’t see recovery, we’d be looking at production again,” Booth said.

Here’s one of the best ideas since sliced bread: a compact cargo van that, properly optioned, could just about serve as the family bus.

If the 2010 Ford Transit Connect doesn’t evoke in spirit, if not appearance, the 1960s Volkswagen Bus, you’re too young, you were too stoned to remember or you have no imagination.

PHOTOS/AUDIO: Ford Transit Connect with Healey’s comments
CHAT TRANSCRIPT: James Healey answers your questions

Ford says the official reason for modifying the Euro-market TC for the U.S. is to plug a hole in the market. It’s for business people who don’t want the cost or size of a big van but need something more utilitarian and robust than a minivan or hatchback.

But — wink, wink, nod, nod — there just might be a few surfers, artists, college students, vagabonds and unrehabilitated hippies to broaden TC’s appeal.
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Primitive by today’s hoity-toity standards, perhaps, but a delight all 480 miles from USA TODAY HQ in McLean, Va., to Knoxville, Tenn. A hefty bunch of that was in rain and wind so vicious that the radio station began yelping for everybody to get off the road in that “we’re all gonna die” way of weather warnings.

Transit Connect pressed on, its wipers flicking away rain as if the storm were a shower. The low center of gravity more than compensated for the tall silhouette to keep the TC stable in the fierce crosswind. Dry-road handling was good, too.

The four-cylinder engine, based on what’s in the Focus compact car, should have been unsuitable in the hills and against the wind, but it just growled louder and maintained. True, a five-speed automatic instead of the Transit Connect’s four-speed would have calmed the frantic up/downshifting. But what’s a bit of shifting back and forth between friends?

The work-truck cloth seats were remarkably comfortable even though (perhaps because) they lacked uncounted ways of adjusting. Less is more.

A ceiling-mounted shelf designed for invoices, computers, order pads and the like was perfect for maps, snacks and other road-trip detritus.

Lightly laden, TC rode smoothly. Usually, cargo haulers need weight aboard to ride smoothly.

Quiet for its ilk. None of the expected wind howl from such a bluff face, nor sounding-chamber resonances from the open, uninsulated cargo space.

Rear doors opened a conventional 90 degrees, or swung all the way around against the sides, where magnets held them. Good for loading docks.

Space between fender wells is 48.1 inches, just enough for standard-size building materials such as drywall — but not with doors closed; only 6 feet of fore-aft cargo room, not the 8 feet you’d need.

Totes up to 1,600 pounds, as much as a full-size pickup. Holds up to 135 cubic feet of goods, more than a full-size SUV. A quirk of its European-market origins: The hood is locked. Swivel the Ford logo on the grill to expose the lock, use the ignition key to open it. A security feature.

Ford-anointed suppliers sell a staggering array of racks, bins, shelves and other holders so the van’s just so when you pick it up at the dealership.

Transit Connect did have some issues:

•Rear visibility was terrible, and that’s with optional side and back windows (windowless is standard). A backup camera would be a useful option.

•The add-on Bluetooth module was a tacky hunk of plastic hanging from the steering column, in the way of other controls.

•The optional navigation system was terrible. Pronunciation sometimes was undecipherable. “Ravensworth” came out “raffenurn,” for instance. Instructions were late, more validation than guidance: “Turn right.” Ah, thanks Navi Girl; glad we made the correct move there.

Test vehicle had the optional second row of seats (no third row available). OK for kids, tight for adults.

Customization possibilities, commendable fuel economy, affable driving personality: Transit Connect is not just a tradesperson’s delight but a potential cult machine.

2010 Ford Transit Connect

•What? Small panel van for tradespeople who want better mileage, lower cost, trimmer size than a big van or truck, and more utility than a minivan, small wagon or hatchback. Front-drive cargo vehicle with sliding side doors, swing-open rear doors, built on a dedicated commercial-truck chassis, Ford says, not a converted car chassis.

•When? Went on sale June 23.

•Where? Made at Ford Otoson factory in Kocaeli, Turkey, a joint venture between Ford Motor and Koc, a Turkish industrial conglomerate.

•Why? Ford didn’t see anything else like it in the U.S., decided to modify the Euro-market Transit Connect and fill a need.

•How much? Starts at $21,475 including $695 shipping. Loaded test vehicle, equipped with a second row of seats, side-door windows, navigation and other passenger-vehicle accoutrements, was about $24,000.

•How powerful? 2-liter, four-cylinder engine rated 136 horsepower at 6,300 rpm, 128 pounds-feet of torque at 4,750 rpm, mated to four-speed automatic transmission.

•How big? 180.7 inches long, 70.7 inches wide, 79.3 inches tall on a 114.6-in. wheelbase. Weighs about 3,400 lbs. Carries up to 1,600 lbs. (as much as a full-size pickup), has as much as 135.3 cubic feet of cargo space, depending on configuration (more than a full-size SUV).

•How thirsty? Rated 22 miles per gallon in town, 25 mpg on the highway, 23 in combined driving (4.35 gallons/100 miles).

Test vehicle recorded 19 mpg in suburban driving (5.26 gal./100 mi.), 18.4 mpg on the highway (5.43 gallons/100 miles).

All driving done with light load, heavy foot. Highway test included hilly terrain and strong crosswind.

Burns regular, holds 15.4 gallons.

•Overall: Wonderful. Makes you want to open a shop so you can have one for deliveries.