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akirby last won the day on July 26
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About akirby
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He’s exactly right. What is the cost difference between a v8 drivetrain in a F150 and an ecoboost I4 in a Maverick? $2k? $5k? The difference between a small battery pack and a huge one is more like $20k to get the same range and performance. Thats a $20k premium (or more) on top of the actual vehicle cost. So whereas today there might be a $10k difference between a Ranger and f150, with EVs that might be $25k just for the larger size with no increase in range or performance. The cost will come down over time but the difference remains. It’s an interesting dynamic.
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Ford’s 2nd Quarter Earnings
akirby replied to Trader 10's topic in Ford Motor Company Discussion Forum
Agreed. The pieces that seem different to me now is the change in compensation for management and all the outsiders on the model E side including the skunkworks team. This should lead to new design, engineering and manufacturing processes for model E with higher quality baked in from the start. I think they’ll stick with it as long as costs continue to go down and profits stay up. The question is what happens if profits and/or sales start to fall - will they revert to their old ways? I hope not. -
Nobody said or implied anything to the contrary. Ford has way too many serious recalls and other issues. But it’s a lower number than what is being reported.
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Top 10 Selling Trucks of 2024 So Far
akirby replied to T-dubz's topic in Ford Motor Company Discussion Forum
I see much bigger incentives and dealer discounts on Frontiers. $6K on one I looked at compared to $2K on Ranger from the same dealer family. They also like to do more heavily subsidized leases. -
Ford’s 2nd Quarter Earnings
akirby replied to Trader 10's topic in Ford Motor Company Discussion Forum
Can’t disagree that he waited too long to make real changes for quality improvement. I suspect he tried to make incremental changes while still pushing aggressive product schedules and cost cutting before realizing that wasn’t enough. Now it seems on the surface that there is a commitment to quality over sales as evidenced by the extended launch holds. And changing the compensation KPIs is a huge step but we’ll have to see if they keep up that commitment or backslide. I also agree he mismanaged SOME of the EV stuff like the Oakville debacle and Rivian and VW partnerships along with ever changing product plans. But I think T3 and BOC is absolutely the right move and he did create the skunkworks team which might turn out to be a genius move. We’ll have to wait and see. But to say it’s a failure because of the model E startup costs is short sighted. -
I agree with that.
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Ford’s 2nd Quarter Earnings
akirby replied to Trader 10's topic in Ford Motor Company Discussion Forum
Don’t forget Farley came from Toyota. When you reward managers for meeting dates and cutting costs and ignore quality you shouldn’t be surprised when you get poor quality. Managers always make decisions that benefit them. Remember the Focus DCT? Engineer says it won’t hold up to the torque of the 2.0L engine. Middle managers had to decide to keep their mouth shut and make their cost and date targets knowing there would probably be problems down the line or throw the red flag and fix the problem which would have taken months if not a year and driven up costs significantly. They chose the first option, collected their bonuses and raises and were off to some other project by the time the shit hit the fan. No consequences. Had they chosen the latter option at the time they probably would have been dinged quite heavily for missing dates and cost targets. Contrast that to a new policy that says hiding a known problem or potential problem is a firable offense and that your bonus is tied to quality KPIs not dates. Under that policy you don’t ignore or hide problems. Thats the change Farley made and that’s why this has a chance of working. -
Ford’s 2nd Quarter Earnings
akirby replied to Trader 10's topic in Ford Motor Company Discussion Forum
Changes have already been implemented and appear to be trending positively. Most notably holding new vehicle launches. Farley made quality a top priority for management and tied it to their pay which is absolutely imperative. I would also bet Farley has brought in outside help. -
Stellantis my consider dropping unprofitable brands.
akirby replied to atomcat68's topic in Competing Products
Dodge was dead when they switched trucks to Ram. -
Top 10 Selling Trucks of 2024 So Far
akirby replied to T-dubz's topic in Ford Motor Company Discussion Forum