FOE and the Exchange Rate

[mackinaw]

Very interesting article in today's Detroit News about Ford of Europe. The Author, Neil Winton, quotes several people who touch on several interesting topics. Some european analysts say that Mulally's "One Ford" idea isn't working, that Ford should have sold Volvo when they had the chance, and that FOE recent success isn't as impressive as most folks think:

 

http://www.detnews.com/apps/pbcs.dll/artic...362/OPINION0339

[SVT_MAN]

Bhaskar said previous attempts to sell European models like an early Mondeo in North America stumbled, not because the basic product wasn't up to it, but because Ford management didn't do enough work to adapt for local tastes.

 

Not enough cup holders

 

"It didn't have enough cup holders, the boot (trunk) wasn't big enough for a standard American suitcase and the rear seats were not big enough. These minor details could have been sorted out," he said.

 

Unfortunately, Bhaskar said because of the exchange rate problem, most European Fords although looking perfect for the U.S. now, would be uneconomic. The new little Fiesta will appear in the U.S., but will probably be made in Mexico or South America. Bhaskar said many Ford North American factories which have been closed recently could easily have produced smaller European designed products with minimal investment.

 

Hmm. I wonder if this is true.

Edited May 10, 2008 by SVT_MAN

[silvrsvt]

Those so called experts don't have a fucking clue...Let see:

 

Manchester University's Williams agrees that there's no mileage for Ford globalization plans using European products because of the exchange rate, but there's still plenty of scope for advantage.

 

The point isn't to import Products from Europe into North America, its to use same platforms built on both sides of the Atlantic, saving on trying to develop two different platforms for those two markets when one will do..

 

Then we have this gem:

 

Bhaskar said many Ford North American factories which have been closed recently could easily have produced smaller European designed products with minimal investment.

 

The main reason those plant where closed down is that market share isn't there to support them!

[battyr]

Very interesting article in today's Detroit News about Ford of Europe. The Author, Neil Winton, quotes several people who touch on several interesting topics. Some european analysts say that Mulally's "One Ford" idea isn't working, that Ford should have sold Volvo when they had the chance, and that FOE recent success isn't as impressive as most folks think:

 

http://www.detnews.com/apps/pbcs.dll/artic...362/OPINION0339

 

The article take a lot of stuff from different sources. Takes a lot of stuff out of propper context.

 

Europe has history of losing money.

 

Europe is the most competitve automotive market in the world. If "One Ford" can make money there, it can make money anywhere. Over the last 25 years Ford has made several attempts at building global cars. The old attempts mostly failed. The problem is not the engineers, nor the technology. It is how the organization is set up. IMO this time I thinks they have it right.

 

Using European product for global sales won't work because of exchange rates.

 

They have no ideas what they are talking about. Ford is using European designs because they are already developed off well designed platforms. They are small cars which is what the world wants with high fuel costs. The platforms were originally designed when the Euro was cheap. Europe is responsible for design, but much of the design work will be done around the world. Europe will just oversee engineering. Many of the subcomponents will be designed in the US. The manufacturing of the cars will be in the local market, so the value of the Euro will have little to do with the cost of the car.

 

There should be much more emphasis on global design with regional variants. Volvo ... regret not selling it

 

I agree with global design with regional variants. This is the secret. Volvo is a good company and are now integrated into Ford. IMO if Volvo start using more Ford global design and more Volvo regional variants they will do very well. Get Volvo into "One Ford" as fast as posible and start pumping money into product development.

Edited May 10, 2008 by battyr

[Edstock]

It's a weasel article, from somebody with a mendacious attitude.

 

In fact, as Ford Motor Co desperately seeks to downsize its fleet of huge, inappropriate gas guzzlers,

 

C'mon now, Focus, Fusion, Taurus, Edge, Escape are a fleet of huge, inappropriate gas guzzlers?

 

So, from the opening, we have somebody with their own agenda.

 

Add to this, a lack of understanding of how Ford almost ran Ford EU into the ground in the 80's.

 

Can Ford of Europe break this 20 year record of loss or break-even?

 

Ford EU found itself with old, obsolete engines in the 80's, and an inability to design or build anything to replace them, which was why they bought the Duratech V-6's design from Porsche.

 

But, the damage was done, and it's going to be another decade for Ford EU to recover. And that, IMHO, more than anything else, is the source of Ford Eu's problems. It's all about the product; always has been, always will be.

[battyr]

Hmm. I wonder if this is true.

 

In many future products you will find that the sedan version will be designed with an american sized trunk and won't be sold in Europe. The hatch back will have a European sized trunk and not be sold in the US.

 

Missing cup holders is just stupid. I don't thinks Europeans care if they have to look at cup holders that they won't be using. American executives always oversee car design. Why didn't they force cupholders into the design. They were just not doing their jobs.

[RichardJensen]

Bad article based on ill-informed sources.

[jpd80]

The article does not recognise that Ford NA's primary market is Trucks and SUVs.

Last year, Trucks outsold cars by a 3:1 ratio meaning, cars are 25% of business.

 

 

Oh and btw,

C1 Focus Sedan has 19 cuft trunk

EUCD Mondeo Sedan has 18.9 cuft trunk

 

I don't see a problem in the US designing sedan versions and Europe doing the hatches,

each will have control of their dominant market models.

[silvrsvt]

The article does not recognise that Ford NA's primary market is Trucks and SUVs.

Last year, Trucks outsold cars by a 3:1 ratio meaning, cars are 25% of business.

 

The NA market is shifting back to cars...for the first time in 20 years, Cars outsold trucks

[jpd80]

That may be so but, last year Ford sold over 1.5 million trucks and 570,000 cars

At the moment, Ford North America is looking like a truck company that sells cars.....

 

What cars do they have?

Focus, Fusion, Mustang, Taurus and Crown Victoria - the latter not available to the public.

Good things coming with Fiesta, Focus, Fusion and Taurus, hope Mustang /RWD Sedan play a part too.

Edited May 11, 2008 by jpd80

[Cougarpower]

Walt Madeira, Manager, European Vehicle Sales Forecasts at consultancy CSM Worldwide shares the view that Ford's push to become one world-wide company hasn't worked yet.

 

"Ford continues to be a group of regional companies all in competition with one another regarding design, engineering, parts sourcing etc. Ford talks of being global, but Ford is not a truly global company. BMW and Honda are the best examples of true global companies," Madeira said.

Apparently this person doesnt read too much about the Ford plans.

 

Ford Global Fiesta

Ford Global Focus

Ford Fusion and Mondeo Merged by 2012

Ford Kuga and Escape Merged by 2012

Ford Falcon and CV merged by 2012

 

and another thing is that the American people will not want to pay the price of EU Ford because those cars have more content that the cars in the US , just ask GM why the Astra after being applauded by everyone is lagging in the sales, Americans like me want cars with more hp that the EU version and not as costly as them and this guy should ask Toyota why they are sucking so bad in Europe and why Honda sells a different Civic in the states and in Europe and the same goes to Toyota

[MKII]

Bottom line of this article shows that they have very little faith in Ford to be able to pull off a one world Ford.

Edited May 11, 2008 by MKII

[F250]

Those so called experts don't have a fucking clue...Let see:

 

 

 

The point isn't to import Products from Europe into North America, its to use same platforms built on both sides of the Atlantic, saving on trying to develop two different platforms for those two markets when one will do..

 

Like the Transit Connect? Nope, Ford implied it would be built here then invested their money in another foreign country to build them.

 

Then we have this gem:

The main reason those plant where closed down is that market share isn't there to support them!

 

I have to disagree again. The Fusion should be built in Atlanta. The next Ranger should be built right where it is now TCAP. And any new vehicle car or truck could have been built in Norfolk. Norfolk was Ford's first flex plant but Ford never utilized the ability, they just had them build the very same vehicles (F-Series) and never tried using the flex capability after they invested big money in it.

[silvrsvt]

Like the Transit Connect? Nope, Ford implied it would be built here then invested their money in another foreign country to build them.

 

What are you talking about? The TC has ALWAYS been built overseas in Europe. Its better to import them for a couple years to see how they fare in the states then to spend billions on retooling a plant and then it failing in the market place

 

I have to disagree again. The Fusion should be built in Atlanta. The next Ranger should be built right where it is now TCAP. And any new vehicle car or truck could have been built in Norfolk. Norfolk was Ford's first flex plant but Ford never utilized the ability, they just had them build the very same vehicles (F-Series) and never tried using the flex capability after they invested big money in it.

 

See your wrong again:

 

Atlanta: No room to put a supplier park in...the plant is right next to the airport and a matter of fact depending on how you come into Atlanta Airport, you fly over the damn thing.

 

Norfolk suffered the same fate as Atlanta, no place to put a supplier park in

 

TCAP is just friggen old and Ford has excess production space at the Dearborn Truck Plant, thus why the F-100 or Ranger will be built there

[F250]

What are you talking about? The TC has ALWAYS been built overseas in Europe. Its better to import them for a couple years to see how they fare in the states then to spend billions on retooling a plant and then it failing in the market place

 

BILLIONS to retool an existing plant. Wrong! Hell, Toyota only spent 1.6 billion building the Texas Tundra plant from the ground up and it was way over budget.

Ford has no intention of ever building the Transit Connect in America:

"There has been a lot of speculation in Romania and elsewhere about what that first vehicle will be. Let me end that speculation today by announcing that we shall begin manufacturing the award-winning Transit Connect here in Craiova from next year,"...Recently we announced that the Transit Connect is to go on sale in selected American markets in the summer of 2009. We have therefore taken the decision to use the Craiova plant capacity to meet the growing demand for the Transit Connect," he added.

 

 

 

See your wrong again:

 

Atlanta: No room to put a supplier park in...the plant is right next to the airport and a matter of fact depending on how you come into Atlanta Airport, you fly over the damn thing.

 

Norfolk suffered the same fate as Atlanta, no place to put a supplier park in

 

TCAP is just friggen old and Ford has excess production space at the Dearborn Truck Plant, thus why the F-100 or Ranger will be built there

 

How did Atlanta earn all those awards and build all of those Tauruses that helped save Ford's ass in the 80's and 90's without your supplier park.

 

Quality and productivity were Norfolk's hallmark for 82 years that's why they were selected as the launch plant for the PN96 and P221 F-150s the best selling trucks in Ford's history. Ford had recently spent hundreds of millions expanding, flexing and upgrading Norfolk so apparently they were not so concerned about your supplier park. When Ford screwed itself into a financial hole and they had to select plants to close company politics was the determining factor and the rest were just cover excuses.

 

When Norfolk closed Dearborn Truck Plant had to add a 3rd shift to cover Norfolk's production and that was on a 5 year old model with declining sales. There are only 2 F-150 plants remaining if the new P415 pulls sales up even moderately I doubt DTP will have the capacity to launch a second vehicle like the new F100/Ranger.

 

Chances are Ford will just import the new Ranger/F100 from some foreign country and they wouldn't consider investing in an American plant to keep it open.

[battyr]

BILLIONS to retool an existing plant. Wrong! Hell, Toyota only spent 1.6 billion building the Texas Tundra plant from the ground up and it was way over budget.

Ford has no intention of ever building the Transit Connect in America:

 

 

 

 

 

 

How did Atlanta earn all those awards and build all of those Tauruses that helped save Ford's ass in the 80's and 90's without your supplier park.

 

Quality and productivity were Norfolk's hallmark for 82 years that's why they were selected as the launch plant for the PN96 and P221 F-150s the best selling trucks in Ford's history. Ford had recently spent hundreds of millions expanding, flexing and upgrading Norfolk so apparently they were not so concerned about your supplier park. When Ford screwed itself into a financial hole and they had to select plants to close company politics was the determining factor and the rest were just cover excuses.

 

When Norfolk closed Dearborn Truck Plant had to add a 3rd shift to cover Norfolk's production and that was on a 5 year old model with declining sales. There are only 2 F-150 plants remaining if the new P415 pulls sales up even moderately I doubt DTP will have the capacity to launch a second vehicle like the new F100/Ranger.

 

Chances are Ford will just import the new Ranger/F100 from some foreign country and they wouldn't consider investing in an American plant to keep it open.

 

IMO the Transit Connect will be built in the US when:

 

1. They prove that it does sell in US.

 

2. Both a C2 based Transit Connect and other C2 cars can be built in the US at the same time. I don't think they will make the current TC in the US. They need a us supply base for Transit Connect parts.

 

A better Idea would be to build the TC in Brazil or Mexico. Unless they put a bigger engine in it and change the styling, I would think South America would be a bigger market for it than the US.

 

I don't like the use of TC for the Transit Connect. I keep thinking of Town Car.

Edited May 11, 2008 by battyr

[silvrsvt]

How did Atlanta earn all those awards and build all of those Tauruses that helped save Ford's ass in the 80's and 90's without your supplier park.

 

Quality and productivity were Norfolk's hallmark for 82 years that's why they were selected as the launch plant for the PN96 and P221 F-150s the best selling trucks in Ford's history. Ford had recently spent hundreds of millions expanding, flexing and upgrading Norfolk so apparently they were not so concerned about your supplier park. When Ford screwed itself into a financial hole and they had to select plants to close company politics was the determining factor and the rest were just cover excuses.

 

To be honest with you, Ford doesnt really give a fuck about those awards, Edison won many awards when it was opened and it suffered the same fate as Norfork...and is being turned into a mall right now.

 

As for Ford spending money, sometimes they have to...Edsion got a bunch of upgrades done to it 6 months before it closed that where required by regulation...it was far cheaper to do the upgrades then receive fines for not doing them.

 

Yes Ford spends money foolishly, but often for reasons not readily apparent.

 

There is alot more going on there then you can see and we'll never be privy to the cost analyis that makes Ford do what they do...in the mean time is all conjecture and SWAGs

 

When Norfolk closed Dearborn Truck Plant had to add a 3rd shift to cover Norfolk's production and that was on a 5 year old model with declining sales. There are only 2 F-150 plants remaining if the new P415 pulls sales up even moderately I doubt DTP will have the capacity to launch a second vehicle like the new F100/Ranger.

 

Last time I checked the DTP could flex in at least 3 different vehicles and in the light of 3.50-4 dollar gas do you seriously expect Ford to keep selling say 400K F-150s (NOT F-series as a whole)? I think they'd be lucky to put out 300K of them now.

Edited May 11, 2008 by silvrsvt

[jpd80]

That article has been witten as though Ford hasn't changed a thing since 2006.

I guess it's easier to spill ink over past problems and mistakes rather than see the plan ahead.

[Surgen]

I must have missed the reference to 'One Ford' in that article.

[salsakingcpa]

Like the Transit Connect? Nope, Ford implied it would be built here then invested their money in another foreign country to build them. I have to disagree again. The Fusion should be built in Atlanta. The next Ranger should be built right where it is now TCAP. And any new vehicle car or truck could have been built in Norfolk. Norfolk was Ford's first flex plant but Ford never utilized the ability, they just had them build the very same vehicles (F-Series) and never tried using the flex capability after they invested big money in it.

 

F250 knows what s/he is talking about.

[salsakingcpa]

BILLIONS to retool an existing plant. Wrong! Hell, Toyota only spent 1.6 billion building the Texas Tundra plant from the ground up and it was way over budget. Ford has no intention of ever building the Transit Connect in America. Chances are Ford will just import the new Ranger/F100 from some foreign country and they wouldn't consider investing in an American plant to keep it open.

 

I concur with F250. There is no way Ford is going to build Ford Transit in the US when Ford just bought the Romanian plant where it has the capacity to produce 200/300K units by 2012. Ranger/F100 will be coming from South Africa and Thailand (or Vietnam).

[salsakingcpa]

How did Atlanta earn all those awards and build all of those Tauruses that helped save Ford's ass in the 80's and 90's without your supplier park.Quality and productivity were Norfolk's hallmark for 82 years that's why they were selected as the launch plant for the PN96 and P221 F-150s the best selling trucks in Ford's history. Ford had recently spent hundreds of millions expanding, flexing and upgrading Norfolk so apparently they were not so concerned about your supplier park. When Ford screwed itself into a financial hole and they had to select plants to close company politics was the determining factor and the rest were just cover excuses.

 

Ford closed the most productive and quality producing plants; Ford is screwed big time then. Amazing, no wonder, that explains everything, Quality has gone downhill ever since then. Screw it, Ford is deserves it, then.

[suv_guy_19]

Ford closed the most productive and quality producing plants; Ford is screwed big time then. Amazing, no wonder, that explains everything, Quality has gone downhill ever since then. Screw it, Ford is deserves it, then.

 

 

Oh yeah.