Marginal Economist Posted May 11, 2009 Share Posted May 11, 2009 LINK Great read. Hints towards letting Mercury die the slow death. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 11, 2009 Share Posted May 11, 2009 (edited) The story of how Mulally revived Ford's best-known sedan is a quintessential demonstration of the Mulally method - analyzing a situation using accepted facts and then winning over support through persistence. Here's the story, told by Mulally: "I arrive here, and the first day I say, 'Let's go look at the product lineup.' And they lay it out, and I said, 'Where's the Taurus?' They said, 'Well, we killed it.' I said, 'What do you mean, you killed it?' 'Well, we made a couple that looked like a football. They didn't sell very well, so we stopped it.' 'You stopped the Taurus?' I said. 'How many billions of dollars does it cost to build brand loyalty around a name?' 'Well, we thought it was so damaged that we named it the Five Hundred.' I said, 'Well, you've got until tomorrow to find a vehicle to put the Taurus name on because that's why I'm here. Then you have two years to make the coolest vehicle that you can possibly make.'?" The 2010 Taurus is arriving on the market this spring, and while it is not as startling as the original 1986 Taurus, it is still pretty cool. Seems somebody like Mulally had to turn the Ford corporate around quick before it was too late. We now know where Ford would have ended up listening to that former brains trust. The Dearborn morons tried to turn the Falcon into a football too but FoA bucked and saved its car. Edited May 11, 2009 by jpd80 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted May 11, 2009 Share Posted May 11, 2009 Seems somebody like Mulally had to turn the Ford corporate around quick before it was too late. We now know where Ford would have ended up listening to that former brains trust. Excatly...I think Mulally will prob go down in History as Ford's most important CEO outside of Henry Ford. He totally changed the way of thinking that has infested the Big 3 and thus why the other two are in so much trouble. Heres another great quote: For instance, Mulally is determined that Ford reduce its dependence on light trucks as gas becomes more expensive, and he has let the entire organization know it in the bluntest possible language. "Everybody says you can't make money off small cars," he says. "Well, you'd better damn well figure out how to make money, because that's where the world is going." Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 11, 2009 Share Posted May 11, 2009 They know I've removed vice presidents because they couldn't stop talking because they thought they were so damn important." My favorite part of the article. The more I read about this guy, the more I like him. Still think he's overpaid, tho. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 11, 2009 Share Posted May 11, 2009 My favorite part of the article. The more I read about this guy, the more I like him. Still think he's overpaid, tho. If he wasn't "overpaid", he wouldn't currently be Ford's CEO and those VP's you complain about would still have their jobs. You? Maybe not. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted May 11, 2009 Share Posted May 11, 2009 Excatly...I think Mulally will prob go down in History as Ford's most important CEO outside of Henry Ford. He totally changed the way of thinking that has infested the Big 3 and thus why the other two are in so much trouble. Heres another great quote: Lots of saviors for Ford over the years, either product or leader depending upon how you look at it. The Model A saved Ford the first time. The '49 Ford the second time with Henry Ford ll taking over the helm. Then back in '79 or so Ford was in big trouble again and at deaths door with stock share price of about $2 and most predicted Ford would follow Chrysler into bankruptcy. It took the '86 Taurus to get Ford back on track once again. Now fast forward to 2009 and Ford is using new products and financial independance as its prime weapon for survival with a very able leader with vision. Ford has this capablility of reinventing itself every 25 years or so. Maybe that is why it has survived 106 years and counting. However, Mulally is 64 years old and we had better hope Fields and others are steadfast followers of the Mulally mantra of One Ford. I doubt if Mulally will be around much more than two more years. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 11, 2009 Share Posted May 11, 2009 If he wasn't "overpaid", he wouldn't currently be Ford's CEO and those VP's you complain about would still have their jobs. You? Maybe not. I don't care if he makes Ford the #1 automaker in the world, nobody is worth $39 Million a year. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 11, 2009 Share Posted May 11, 2009 (edited) I don't care if he makes Ford the #1 automaker in the world, nobody is worth $39 Million a year. Then you wouldn't mind if Ford went bankrupt? I don't care what the CEO of my company gets paid, as long as the company is sound and he does what needs to be done to make sure my livelihood is secure. Edited May 11, 2009 by NickF1011 Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 11, 2009 Share Posted May 11, 2009 Then you wouldn't mind if Ford went bankrupt? Sure, I would mind if Ford went bankrupt. Still doesn't change my mind about executive compensation, especially since the Japanese seem to be doing just fine with ther CEO's limited to making 20X the highest paid hourly worker. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted May 11, 2009 Share Posted May 11, 2009 I don't care what the CEO of my company gets paid, as long as the company is sound and he does what needs to be done to make sure my livelihood is secure. Agreed! Would it be better to pay Mulally $39M and have Ford turn around and make a profit or pay Joe Schmoe $200k and have Ford go into bankruptcy? Some CEO's are grossly overpaid, especially those making millions when there company is losing billions, but I think Mulally earns his keep. I think Mulally is "fine where he is at." Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 11, 2009 Share Posted May 11, 2009 (edited) Sure, I would mind if Ford went bankrupt. Still doesn't change my mind about executive compensation, especially since the Japanese seem to be doing just fine with ther CEO's limited to making 20X the highest paid hourly worker. Different cultures. Different mindsets. To compare them is just silly. You're not going to find a good CEO in the U.S. for the money they are paid in Japan. You want that kind of executive pay? Move to Japan. Or go work for Toyota. :P Edited May 11, 2009 by NickF1011 Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 11, 2009 Share Posted May 11, 2009 Some CEO's are grossly overpaid, especially those making millions when there company is losing billions Um, Ford is losing Billions too........ Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 11, 2009 Share Posted May 11, 2009 Um, Ford is losing Billions too........ Due to Mulally's doing? Hardly. The losses would be staggering without the changes he has implemented. Can we say "prepackaged bankruptcy"? Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted May 11, 2009 Share Posted May 11, 2009 Agreed! Would it be better to pay Mulally $39M and have Ford turn around and make a profit or pay Joe Schmoe $200k and have Ford go into bankruptcy? Some CEO's are grossly overpaid, especially those making millions when there company is losing billions, but I think Mulally earns his keep. I think Mulally is "fine where he is at." As a stockholder and bondholder of many companies including Ford, I only care what a CEO is making when company is doing badly and share price is dismal. When new CEO comes in and turns around sick company, then that CEO is worth his weight in gold IMO. Not many people in world have have the capability to turn around a company the size of Ford with all its complexity. You could probably name them on one finger. Ford is very lucky to have Mulally and his pay should not be an issue period. To even bring it up is ludicrous in the extreme. Btw, I vote against companies on just about all proxy statements. I get sick to my stomach when reading about executive compensation and their retirement compensation and their golden parachutes. But every now and then you get a CEO that is worth his weight in gold. Mulally is one just as Jack Welch was with GE when stock hit $150/share and split 3 for 1. Look at it now with Immelt as CEO. Quote Link to comment Share on other sites More sharing options...
saintlaz1 Posted May 11, 2009 Share Posted May 11, 2009 LINK Great read. Hints towards letting Mercury die the slow death. "Although he has weighed in on model names, brand streamlining (he is allowing Mercury to wither away)" This hint came from the writer not Alan. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted May 11, 2009 Share Posted May 11, 2009 (edited) Um, Ford is losing Billions too........ Yeah...thanks to several factors not including Mulally! And things are starting to turn around...thanks to Mulally! Edited May 11, 2009 by fordmantpw Quote Link to comment Share on other sites More sharing options...
Project-Fairmont Posted May 11, 2009 Share Posted May 11, 2009 Its about results...if the plan works, and Ford is saved, how can you put a price tag on a legacy like that? If it doesn't work I don't think I could blame Mulally, it would because the market is no longer interested in a Ford - even good ones. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 11, 2009 Share Posted May 11, 2009 Different cultures. Different mindsets. You got that right. In Japan, everything is all about how the company is doing. In America, it all about "me". Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted May 11, 2009 Share Posted May 11, 2009 (edited) You got that right. In Japan, everything is all about how the company is doing. In America, it all about "me". I agree with you there! But, I don't think Mulally is "all about me." I don't think he is in it just for the money. He wants to see Ford stick around and succeed. If you're already making millions at Boeing, would you take a job making a few more millions and have to work much much harder to earn it? I mean really, how much does a person need? If I could make $5M/year, I'd work two years and retire, not look for another job making $10M/year (of course, then I'd only have to work 1 year!) Edited May 11, 2009 by fordmantpw Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 11, 2009 Share Posted May 11, 2009 You got that right. In Japan, everything is all about how the company is doing. In America, it all about "me". It's about compromise I suppose. You have one extreme here and another in Japan. Personally, I'd rather be closer to this extreme than be another member of the "collective". Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 11, 2009 Share Posted May 11, 2009 I don't think he is in it just for the money. Then why not give it back? Or, at least use some of it to pay for his and his family's $345,000 worth of airfare to and from Seattle instead of having Ford foot the bill. Quote Link to comment Share on other sites More sharing options...
Hydro Posted May 11, 2009 Share Posted May 11, 2009 good article. I am a crappy reader (meaning I lose interest fast and don't remember what I just read), but this one had me the whole time. It definitely looks like he is enjoying himself and is out on a mission to build a ultra powerhouse vehicle brand. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 11, 2009 Share Posted May 11, 2009 Then why not give it back? Or, at least use some of it to pay for his and his family's $345,000 worth of airfare to and from Seattle instead of having Ford foot the bill. For the same reason pro athletes don't pay to fly to and from games. They don't have to. Would you pay for something that someone else is willing to give you for free? Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted May 11, 2009 Share Posted May 11, 2009 For the same reason pro athletes don't pay to fly to and from games. They don't have to. Would you pay for something that someone else is willing to give you for free? Exactly! I don't do my job just for the money as I know I could make more elsewhere. That being said, if my company were to offer me a 10% raise, do you think I would say "no thanks, I make enough already"? :shades: Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted May 11, 2009 Share Posted May 11, 2009 Then why not give it back? Or, at least use some of it to pay for his and his family's $345,000 worth of airfare to and from Seattle instead of having Ford foot the bill. How about you pay all your dental or vision care in your benefits? Its called a perk to make him work for your company...in All seriousness would you want to work for Ford to try and turn them around back about 5 years ago if you where making good money with Boeing? Quote Link to comment Share on other sites More sharing options...
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