Mulally earmarks billions from labor savings for product development

[igor]

Mulally earmarks billions more for product

 

Richard Truett

Automotive News

November 19, 2007 - 12:01 am ET

 

DETROIT — It didn't take long for CEO Alan Mulally to earmark the estimated $2.4 billion in annual savings that Ford Motor Co.'s new labor contract will eventually generate.

 

He's pumping that cash straight into product development, and that's exactly where Ford needs it — maybe desperately.

 

Between now and the 2010 model year, Ford's major North American launches will include a new version of the Ford F-150 pickup and Flex sport wagon and Lincoln's new flagship sedan, the MKS. But there's not much else in the pipeline.

 

In a conference call last week after the union had approved the pact, Mulally said Ford wants to put the pedal to the metal to bring out more new products.

 

"We are now in a position to really accelerate our new product development with great new products," he said.

 

A reprieve

These 5 Ford plants will remain open.

1. Louisville, Ky. (builds Ford Explorer, Mercury Mountaineer)

2. Wayne, Mich. (builds Ford Focus)

3. Wayne, Mich. (stamping plant)

4. Rawsonville, Mich. (powertrain parts)

5. Dearborn, Mich. (frames, suspension parts, truck axles)

 

But when asked what new products he wants to build and when they might arrive, Mulally would say only that Ford will likely update its plans around the time of the Detroit auto show in January.

 

Here are other contract details:

 

* Plans to build a low-cost plant somewhere in North America are dead.

 

Mulally said the payroll savings and Ford's move to flexible manufacturing make the new plant unnecessary.

 

* Two plants slated for closure, the Twin Cities factory in St. Paul, Minn., that makes the Ranger pickup and the Cleveland casting plant that makes engine blocks, will stay open an additional year.

 

The Ranger will die at the end of the 2009 model year instead of next summer. Cleveland will close in 2010.

 

* Five other plants that had been scheduled to close will remain open through 2011, the life of the new contract.

 

LINK: http://autonews.com/apps/pbcs.dll/article?.../711190352/1176

[silvrsvt]

So what else can Ford come out with Quickly with this money?

 

This quote kills me:

 

Between now and the 2010 model year, Ford's major North American launches will include a new version of the Ford F-150 pickup and Flex sport wagon and Lincoln's new flagship sedan, the MKS. But there's not much else in the pipeline.

 

So no Verve, No updated CD3 cars, no updated Mustang and maybe even the new tophat Taurus in that timeframe?

Edited November 19, 2007 by silvrsvt

[LincolnFan]

No Lincoln MKFlex? Do'h.

 

I wonder if Ford is going to pull a RWD Taurus, I mean, if Igor resources are correct, Ford will make 2 RWD Lincolns, why not a RWD Fordor? The Mustang, The Taurus (RWD), The MKR and the MKE. That will surely fill a plant.

[NickF1011]

No Lincoln MKFlex? Do'h.

 

I wonder if Ford is going to pull a RWD Taurus, I mean, if Igor resources are correct, Ford will make 2 RWD Lincolns, why not a RWD Fordor? The Mustang, The Taurus (RWD), The MKR and the MKE. That will surely fill a plant.

 

I would say the more likely scenario is to see a RWD Ford sedan in ADDITION to the Taurus. We're no longer in the land of Every-Vehicle-Must-Sell-300,000-Copies-A-Year-To-Make-A-Profit. By sharing architectures, both vehicles could likely carve out a niche for themselves in the showroom. The Taurus could remain rather staid and family-oriented while the RWD sedan could go a more aggressive route and make a nice stablemate for Mustang owners to step into when they require a 4-door. There's no reason to cancel one just for the sake of the other if both of them could work at the same time.

[Biker16]

I can see the S-max and galaxy biult here unbder the mercury brand.

 

 

Definitely see the Transit, and transit connect being built here.

[LincolnFan]

I would say the more likely scenario is to see a RWD Ford sedan in ADDITION to the Taurus. We're no longer in the land of Every-Vehicle-Must-Sell-300,000-Copies-A-Year-To-Make-A-Profit. By sharing architectures, both vehicles could likely carve out a niche for themselves in the showroom. The Taurus could remain rather staid and family-oriented while the RWD sedan could go a more aggressive route and make a nice stablemate for Mustang owners to step into when they require a 4-door. There's no reason to cancel one just for the sake of the other if both of them could work at the same time.

 

But they will both compete with each other, the average joe doesn't know which wheels drive his car, that will be the main difference between the Taurus and the Fordor.

[Edstock]

the average joe doesn't know which wheels drive his car

 

You'd be surprised how many people think the Panthers are FWD, believe it or not.

[Hemiman]

I would say the more likely scenario is to see a RWD Ford sedan in ADDITION to the Taurus. We're no longer in the land of Every-Vehicle-Must-Sell-300,000-Copies-A-Year-To-Make-A-Profit. By sharing architectures, both vehicles could likely carve out a niche for themselves in the showroom. The Taurus could remain rather staid and family-oriented while the RWD sedan could go a more aggressive route and make a nice stablemate for Mustang owners to step into when they require a 4-door. There's no reason to cancel one just for the sake of the other if both of them could work at the same time.

 

 

Right on the money!

 

The two can peacefully coexist & maybe even share some components.

 

BlueII said that RWD was "Confirmed" Anyone have any deatails?

[NickF1011]

But they will both compete with each other, the average joe doesn't know which wheels drive his car, that will be the main difference between the Taurus and the Fordor.

 

So LET them compete with each other. If Ford is unwilling to compete with ITSELF for sales, other automakers will be MORE than happy to compete for those sales instead.

 

While the drivetrain configuration will certainly be a major difference, it can no way be said that it would necessarily be the MAIN difference. The fact that the Taurus has no image to be a performance vehicle (aside from the SHO many many moons ago) alone makes the concept of a different RWD stablemate a possibility. Bring to market something much more Falcon-like with available V8 power and much more sporting intentions and you really have two very different vehicles with minimal cross-shopping.

 

Like I said before, neither of these vehicles needs to sell a shitload to make it a winning proposition. People need to get that idea out of their heads.

[White99GT]

Like I said before, neither of these vehicles needs to sell a shitload to make it a winning proposition. People need to get that idea out of their heads.

 

Yea, but if Ford doesn't sell 10,000 units a month it will be labeled as a failure by the media and pscario.

[NickF1011]

Yea, but if Ford doesn't sell 10,000 units a month it will be labeled as a failure by the media and pscario.

 

And Ford should care about that because.....

[Noah Harbinger]

But they will both compete with each other, the average joe doesn't know which wheels drive his car, that will be the main difference between the Taurus and the Fordor.

 

The average joe will be able to tell the difference between "elegant" and "aggressive".

[White99GT]

And Ford should care about that because.....

 

Because psacrio is god? His opinions aren't opinion, they are fact.

Edited November 19, 2007 by White99GT

[ShockFX]

So LET them compete with each other. If Ford is unwilling to compete with ITSELF for sales, other automakers will be MORE than happy to compete for those sales instead.

 

While the drivetrain configuration will certainly be a major difference, it can no way be said that it would necessarily be the MAIN difference. The fact that the Taurus has no image to be a performance vehicle (aside from the SHO many many moons ago) alone makes the concept of a different RWD stablemate a possibility. Bring to market something much more Falcon-like with available V8 power and much more sporting intentions and you really have two very different vehicles with minimal cross-shopping.

 

Like I said before, neither of these vehicles needs to sell a shitload to make it a winning proposition. People need to get that idea out of their heads.

 

To elaborate on this a bit. With flexible manufacturing, a CAR being a failure isn't a big deal if the PLATFORM is a success.

[LincolnFan]

Because psacrio is god?

 

:hysterical:

[silvrsvt]

Well diving in on the GRWD platform, you could do the following in North America:

 

Long wheelbase model: Lincoln Flagship

SWB Model: Lincoln MKR and a Ford Sedan that is sportier then the Taurus...think 4 door Mustang, maybe call it the T-bird? There was a really nice looking clay model that hasn't come out yet, so maybe this is it.

SWB Coupe: Mustang of Course, maybe a Lincoln Convertible

 

You could even put the OR Explorer on the platform and keep it a "truck" and get good MPG

 

Sales:

LWB: 25K

SWB Sedan: 75K Ford +30-50K Lincoln

SWB Coupe: 125K Mustangs +25K Lincolns

Total: 280K units and if you do the Explorer, add in another 150-200K units in just North America

[Edstock]

How will the new V-8's work into this?

[igor]

Well diving in on the GRWD platform, you could do the following in North America:

 

Long wheelbase model: Lincoln Flagship

SWB Model: Lincoln MKR and a Ford Sedan that is sportier then the Taurus...think 4 door Mustang, maybe call it the T-bird? There was a really nice looking clay model that hasn't come out yet, so maybe this is it.

SWB Coupe: Mustang of Course, maybe a Lincoln Convertible

 

You could even put the OR Explorer on the platform and keep it a "truck" and get good MPG

 

Sales:

LWB: 25K

SWB Sedan: 75K Ford +30-50K Lincoln

SWB Coupe: 125K Mustangs +25K Lincolns

Total: 280K units and if you do the Explorer, add in another 150-200K units in just North America

 

let's keep it simple shall we:

MKR - midsize Lux sport sedan

MKC - large flagship Lux sedan

Crown Vic / Flacon - Large sport sedan

Mustang

Maybe Lincoln coupe

maybe Explorer

 

THE END ..

 

No Thunrderbird or other nonsense. Taurus stays FWD/AWD

 

Igor

[LincolnFan]

Thunderbird is now grouped with nonesense? That breaks my heart.

 

Mulally, you brought back the Taurus, why in the hell wouldn't you bring back the T-Bird?!

[igor]

Thunderbird is now grouped with nonesense? That breaks my heart.

 

Mulally, you brought back the Taurus, why in the hell wouldn't you bring back the T-Bird?!

T-bird- a large personal coupe .. show me a non-lux large personal coupe that is doing well in the market. And Silver was talking about putting the T-bird name on a SEDAN - that would ruind the name even further than the 04 T-bird did.

 

Ford should not be pursuing esoteric markets - the niche larger RWD sedan market will remain,m and Ford can piggyback on the Lincoln s - Mustang will always sell ... but a large personal coupe - no way - no one buys those anymore unless they cost $80k or above.

 

Igor

[LincolnFan]

T-bird- a large personal coupe .. show me a non-lux large personal coupe that is doing well in the market. And Silver was talking about putting the T-bird name on a SEDAN - that would ruind the name even further than the 04 T-bird did.

 

Yeah, stick the name on the sedan, or a Fordor coupe.

[TomServo92]

T-bird- a large personal coupe .. show me a non-lux large personal coupe that is doing well in the market. And Silver was talking about putting the T-bird name on a SEDAN - that would ruind the name even further than the 04 T-bird did.

 

There is precedence:

 

 

1968 Thunderbird Sedan (with suicide doors no less!)

Edited November 19, 2007 by TomServo92

[jpd80]

Funny how the Interceptor and MKR cars were supposedly Mustang based yet has double wishbone

front suspension and IRS at the back. Ford AUS says they had nothing to do with these cars and no

export LHD version of the Orion Falcon will happen, I wonder if Ford North America has already grabbed

a little from "Column A" and "Column B" to make the two concepts.

 

Have we already seen the beginnings of the new Global RWD platform and not realised it?

Edited November 19, 2007 by jpd80

[akirby]

Funny how the Interceptor and MKR cars were supposedly Mustang based yet has double wishbone

front suspension and IRS at the back. Ford AUS says they had nothing to do with these cars and no

export LHD version of the Orion Falcon will happen, I wonder if Ford North America has already grabbed

a little from "Column A" and "Column B" to make the two concepts.

 

Have we already seen the beginnings of the new Global RWD platform and not realised it?

 

I, too hoped it was a ploy to disguise a new RWD platform but apparently it was all smoke and mirrors. Whatever they used was never production capable. Someone even mentioned it might have been a Lincoln LS platform (dew98).

[Hemiman]

I, too hoped it was a ploy to disguise a new RWD platform but apparently it was all smoke and mirrors. Whatever they used was never production capable. Someone even mentioned it might have been a Lincoln LS platform (dew98).

 

 

I'm hoping that Ford hasn't scrapped the tooling for the DEW-98, as the suspension geometry was superb. Much better than even BMW's, IMHO.

 

When set up properly it could out handel just about everything in it's class. Just look at how well the LS did in OLOA.

 

Hopefully it will be revised and used on the next gen RWDs from Ford.