The US car manufacturer, Ford, has reported a doubling of profits for the first quarter of the year with sales rising to $44.7 billion.

Profits from the first three months of 2004 rose to $1.95 billion, compared to $896 million at the same stage last year.

Ford has recently been forced to cut costs and these profit figures would suggest that their new policies are working, while also hinting at an upturn in the automotive sector's prospects.

"This is the best quarter we have achieved since we began our back-to-basics efforts more than two years ago," chairman and chief executive Bill Ford said in a statement.

"It clearly demonstrates our plan is working and building momentum," he added.

Some experts say that the strong results point to improvements in the industry's prospects, and even an upturn in the US economy.

Earlier this week General Motors surprised the stock market with a $1.3 billion first quarter profit, while European stock analysts have just upgraded their ratings on Ford and Delphi.

In addition there is expectation that DaimlerChrysler will report good quarterly results, while comments from Federal Reserve chairman Alan Greenspan to the Senate Banking Committee suggested growth in the economy was beginning to take shape.

Whilst outlining plans to start raising interest rates Mr Greenspan also alluded to rising consumer confidence.

In Europe, however, the picture remains gloomy, with the Power Information Network, an affiliate of JD Power and Associates, today reporting that the major European brands, including Mercedes-Benz, BMW, Audi and Volvo struggled during the January through March period.