Ford... what's going to happen?

[XcYZ]

It keeps on getting uglier and uglier at Ford. The cuts they're planning on over the next 24 months are huge.

Is the UAW killing them? Do they really have fork lift operators making over $100k a year?

I hope they can right their ship before its too late. All we need it Toyota gaining more market share.

Comments?

[MaxHarvard]

They made comments about shutting down the Town Car... so many taxi/limo companies are just gonna buy Caddy's

[Hdesign]

Maybe Renault/Nissan will buy them, they seem to be fishing for the Big 3 lately.

[Colvindesign]

Ford and GM are both in big trouble.

The problems are more than one single thing. Except if you call their way of doing business one single thing. They have been doing business the same way for years, but things around them have changed, they adapted in ways that were quick fixes that have hurt them tremendously in the long run.

Competition, 50 years ago, they competed with themselves. Today, the competition comes from every conceivable angle, and it is better and cheaper. How have they dealt with this? Rebates and advertising. Both cost them huge amounts of money, that they simply cannot afford to sustain.

Hind-sight is always twenty/twenty. So we can say they shoulda this shoulda that all day. The real question is what they should do now.

The entire business model at both companies needs to be thrown out. It just does not work anymore. Everything from conceptualization to production all the way to sales and service, needs to be rethought.

Bringing in Boeing's Mullaly, might do the trick, but I highly doubt it.

There are ways to beat the competition and profit from it. I would propose selling a major stake in the company to one of the largest finance companies in the US. Then, I would set up a program with that company to finance all vehicles at a maximum of 10% apr. THis means if you go over to Toyota, and they quote you 22% (it happens more than you think), then you can go to Ford and they will give you 10%. If you have excellent credit, you can still get 0% or whatever they decide to use. This alone could save buyers over 100 dollars a month. This is a major selling point.

Next, in line with this program, I'd develop a city/inexpensive vehicle. Plastic body panels, heat, air, a cd player and power steering/brakes, offered in clean diesel and a small displacement gas, it could best 50 mpg and cost under 10,000. The best selling cars of all time (by a huge margin) were small cheap well engineered cars. Combined with a platform that could be shared with other inexpensive vehicles up to midsize vehicles, it would provide adaptability and higher profit per unit. Teamed with low apr guarantee, it would be very affordable to those who otherwise couldn't get a car. As long as it was designed the right way, it could become the next (original) beetle. This car would also be a global vehicle and could sell as many as 1m units annually. Ford probably has most of th ecomponents in it's bin to make this happen today. This could also have parts and sub-assemblies built all over the world at different ford plants, making it even less expensive to produce.

Jaguar, Aston, and LR would all be put on the auction block, but only up to a certain percent. I would say what else I would do with them, but I don't think anyone would like it. I don't mean dismantling them either.

Next, each vehicle would have a price point. below that point and you are losing money. Above that point and you are making money. This point would not include rebates, or excessive advertising. Then each month's sales numbers would dictate the next months budget for rebates and advertising. This would also be a way to break it down and see what is costing the most, what costs too much, and where changes need to be made.

Finally, incomes and salaries from the top to the bottom, would need to be re-evaluated. Hourly wages are out of hand. My father worked for General motors, and would tell me about the old man who worked for 40 years pushing a broom. He didn't want to retire, and because of when he was hired they couldn't force him to. He made over 60 dollars an hour. There is no need for that. I'd say 10 dollars an hour is insulting to a worker on a production line, but 60 an hour is excessive. Also 6m a year for a CEO who underperforms, is excessive as well.




Sorry for throwing my 2 cents at it, but these topics really get me going. They do nothing but throw Harvard grad after Yale grad at the CEO chair and none are prepared adequately to fix things the way they should be fixed. It takes a whole new perspective, and they just don't get that. By the time they do, it will probably be too late.

[sik68]

I see it as a microcosm of how economies of countries work. Think of Japan 10 years ago, then China 2 years ago....people predict that the next big economic powerhouse is India. Yes the US is powerful, but only as a consumerl; our exports have gone down the drain.

I think every company/country has a power-cycle. I think we are getting closer to the end of it for Domestic car manufacturers. If you think about it optimistically though, it is a sign of healthy capitalism.

[trapin]

Uhh....I wouldn't say we're in "big" trouble. We were in a bit of a downward spiral but are now coming out of it. Don't lopp us in with Ford...that's an insult.

As far as they're concerned, I'm worried about my cousin George...he's been there 16 years and has so far dodged every bullet they've shot. But I wonder how much longer he can keep it up.

The problem with domestic Automakers is more gray than it is black and white. I know I have popped off numerous times on this board and others about the perception people have about our cars. Japan has launched one of the most successful PR battles in this country over the past 20 years and our media has been all too happy to oblige them. They basically can get away with whatever they want and can absolutely do nothing wrong (at least that's what the media will have you believe). Case in point...the FJ Cruiser. Why isn't Toyota getting stoned to death for this vehicle the way we have been over HHR? Just look at it. If you don't see H3 in that vehicle you are blind as a friggin bat. Why aren't they being ridiculed, ripped on, and dragged across the coals? They did it to us over HHR, comparing it to the PT Cruiser. I'll tell you why they can get away with it......BECAUSE THEY'RE TOYOTA...THAT'S WHY. They can do no wrong....they're Gods....everything they touch turns to gold. I'll ask you to (once again) take a look at the Honda Element; praised to death in all the rags as a bold, risk taking concept that for a change is a different take on the SUV. You buy this car and you’re a smart buyer that knows quality and style when he sees it. Take the Honda badge off and put on a Pontiac V crest and you can flush all that praise and adulation straight down the toilet. Our media would have ripped that car a new ass, just as they did to the Pontiac Aztek.

Well, that’s enough. I no longer have the energy to argue this tired, drawn out debate about what’s wrong with our domestic car companies. We can't dwell on that crap. We have to press forward and continue to commit ourselves to delivering "must have" products with unparalleled quality. I am completely confident that the products we have coming out in the next 2 to 3 years will make us a force in this industry once again.