Debt-laden Ford sees profits hit $1.7bn

Ford reported a 68 per cent rise in third-quarter profits to $1.7 billion (£1.1bn) as it grabbed a bigger share of the US car market.

The increase marked its sixth straight quarterly profit. But Ford's European operations posted losses of $196 million compared with a $131m profit a year ago.

Ford, which four years ago mortgaged its factories, blue oval logo and other assets to fund a huge restructuring, said it paid off $2bn in debt in the third quarter.

The company, which posted losses totalling $30bn between 2006 and 2008, borrowed $23.5bn in late 2006 to support its turnaround, leaving it with much heavier debt loads than rivals General Motors and Chrysler.

Paying down its debt is part of the company's efforts to regain its investment-grade credit rating, which it held before the global recession.