Ford's Risen From The Ashes, But How AND Why?

[Ovaltine]

http://www.autospies.com/news/The-SPIES-Want-To-Know-Ford-s-Risen-From-The-Ashes-But-How-AND-Why-52875

 

The SPIES Want To Know: Ford's Risen From The Ashes, But How AND Why?

 

Call it the comeback kid or call the past 12 months "the year of Ford" because it is one firm that is doing something right.

 

Here you go gang.... go to town on their response board...... :-)

 

-Ovaltine

[Paul Selby]

IMHO "Jac the Knife" derailed Ford from the successful path it was on. It has taken some time and Alan Mulally for the recovery but it's happening.

[jpd80]

IMHO "Jac the Knife" derailed Ford from the successful path it was on. It has taken some time and Alan Mulally for the recovery but it's happening.

 

Nasser left Ford in 2001, you can't keep dredging him up and ignore the five lost years under Bill Ford up until 2006. It was a good eight years of mismanagement that lead Ford to reform. Just be grateful they had the good sense to say enough otherwise they would still be like GM.

 

Everyone thinks it's about products and selling heaps of vehicles but completely miss that Ford rebuilt the whole company inside out. Changing the way they think about the company and customers is the cornerstone to Ford's reform, only after that do the success of products come into play.

Edited March 27, 2010 by jpd80

[atvman]

It's one of two things:

 

1. Incredible foresight

2. Tremendous luck

 

It's actually a little bit of both. Taking the money was an act of foresight, as Mullaly knew Ford couldn't survive a recession. At first, mortgaging everything looked like an act of desperation, but now it looks like the smartest move the auto industry has seen in decades. Having the extra money in the bank kept Ford off their hands and knees on Washington's doorstep during the recession, something that caused the huge negative PR for GM and Chrysler. Toyota's highly publicizes unintended acceleration fiasco, along with their piss poor way of handling it, made many people angry with Toyota as well. All of this did a lot for Ford's PR, they became the media darling of the auto industry. The focus on quality, crafty restructuring, and increased globalization have both improved customer perfection and decreased costs as well. I think Ford is in a fantastic position now, as long as they don't do anything stupid they should dominate the next decade.

[jpd80]

There were a lot of smart people at Ford before and after Mulally went there:

 

- Mark Fields used a reform plan proven in Europe and South America

- Don LeClair saw what was needed and put the financial plan together

- Bill Ford had the smarts to start the above and then hires Mulally to oversee it.

- Alan Mulally for bringing corporate governance and uniting all the Ford regions.

- Derrick Kuzak for rationalizing of Ford's North American and global platforms

 

Everyone at Ford wanted change,

they wanted the company to be better,

they all did what was needed to achieve that

and now it is better.

 

Here's a puzzler for you,

GM actually started "reforming" themselves in 2005 but then stopped,

they thought enough had been done and their products would get them by.

We know how that ended....

Edited March 27, 2010 by jpd80

[fordtech1]

It's one of two things:

 

1. Incredible foresight

2. Tremendous luck

 

It's actually a little bit of both. Taking the money was an act of foresight, as Mullaly knew Ford couldn't survive a recession. At first, mortgaging everything looked like an act of desperation, but now it looks like the smartest move the auto industry has seen in decades. Having the extra money in the bank kept Ford off their hands and knees on Washington's doorstep during the recession, something that caused the huge negative PR for GM and Chrysler. Toyota's highly publicizes unintended acceleration fiasco, along with their piss poor way of handling it, made many people angry with Toyota as well. All of this did a lot for Ford's PR, they became the media darling of the auto industry. The focus on quality, crafty restructuring, and increased globalization have both improved customer perfection and decreased costs as well. I think Ford is in a fantastic position now, as long as they don't do anything stupid they should dominate the next decade.

 

I agree.

They only thing I think Ford needs to work on is the dealer network. I am not sure how it can be done, but I think it would make a huge improvement on public perception. There a few great dealers, but from what I hear from people is that its too few. The dealership experience is lacking. Especially if you ask Lincoln owners.

[Paul Selby]

Nasser left Ford in 2001, you can't keep dredging him up and ignore the five lost years under Bill Ford up until 2006. It was a good eight years of mismanagement that lead Ford to reform. Just be grateful they had the good sense to say enough otherwise they would still be like GM.

 

Everyone thinks it's about products and selling heaps of vehicles but completely miss that Ford rebuilt the whole company inside out. Changing the way they think about the company and customers is the cornerstone to Ford's reform, only after that do the success of products come into play.

 

I agree, I'm not putting it all on him. What I'm saying is the mismanagement started with Nasser. The turn around didn't seem to start until Mulally.

[jpd80]

I agree, I'm not putting it all on him. What I'm saying is the mismanagement started with Nasser. The turn around didn't seem to start until Mulally.

Nasser is water under the bridge, I would sooner focus on the equally huge recovery that was accomplished in the past four years. Bill Ford tried to level the company out but realized some senior people were thwarting his plans, that culture needed changing. The turnaround plan was developed before Mulally arrived, he was specifically head hunted by Bill Ford to be the new CEO and to keep them on plan.The fact that Ford was profitable last year speaks volumes and contrasts starkly with their cross town rivals.

Edited March 27, 2010 by jpd80

[twintornados]

Mulally accomplished what Bill Ford Jr couldn't....and the beauty of it is, Bill knew he didn't have what it took to make the changes that needed to be changed, but he did have enough sense to realize that he was in over his head and got the help that Ford Motor Company needed to succeed.

[RichardJensen]

Mulally turned a bunch of soloists into an orchestra.

[battyr]

Bill Ford understands his company, both the good and the bad and understands the industry. He knows what needs to be done and plans for long-term success.

 

Mulally is damn smart, puts up with no bull shit and gets things done. He also is a damn good salesman with damn good engineering knowledge. He also has an outside perspective of what works from Boeing.

[Paul Selby]

Nasser is water under the bridge, I would sooner focus on the equally huge recovery that was accomplished in the past four years. Bill Ford tried to level the company out but realized some senior people were thwarting his plans, that culture needed changing. The turnaround plan was developed before Mulally arrived, he was specifically head hunted by Bill Ford to be the new CEO and to keep them on plan.The fact that Ford was profitable last year speaks volumes and contrasts starkly with their cross town rivals.

 

Sorry, no idea Nasser was a touchy subject with you. With the subject of this thread bringing up the past to understand the present seemed reasonable. I will now drive a Cobalt for a week as punishment.

[jpd80]

Sorry, no idea Nasser was a touchy subject with you. With the subject of this thread bringing up the past to understand the present seemed reasonable. I will now drive a Cobalt for a week as punishment.

Not really touchy, he's Lebanese Aussie golden haired boy that rose through the Ford ranks, a very tough hard nosed bullish operator right in the middle of the Dot com explosion. He exemplified all that was wrong with that era of over reaching leveraging for more market share. Ford were caught in the perfect storm of his arrogance and the unfolding Explorer/Firestone law suits. Nasser going to war with Firestone and testifying on national TV was the last thing the Fords wanted.

 

Nasser is now mellowing and probably well suited to running BHP Billiton. He's already said their portfolio mix is just about right and won't be buying other companies. That would be a relief to the rest of the board...

 

 

I'm just glad that my favorite car maker Ford survived such a tumultuous period and

ensuing incentive war and has now come through the other side of the ride from hell.

 

What doesn't kill you makes you stronger, unless you're GM and Chrysler...

Edited March 28, 2010 by jpd80

[weiweishen]

Mulally accomplished what Bill Ford Jr couldn't....and the beauty of it is, Bill knew he didn't have what it took to make the changes that needed to be changed, but he did have enough sense to realize that he was in over his head and got the help that Ford Motor Company needed to succeed.

 

I remembered what Bill Ford said when he stepped down "I lived as Ford and die as Ford". From that moment the restruction of Ford became a perfect drama. I am still enjoying it.

[weiweishen]

Bill Ford understands his company, both the good and the bad and understands the industry. He knows what needs to be done and plans for long-term success.

 

Mulally is damn smart, puts up with no bull shit and gets things done. He also is a damn good salesman with damn good engineering knowledge. He also has an outside perspective of what works from Boeing.

 

 

Mullaly's degree of engineering and MBA and his experience in Boeing is the main reason behind his success. This is exactly what GM need right now.

[jpd80]

Mullaly's degree of engineering and MBA and his experience in Boeing is the main reason behind his success. This is exactly what GM need right now.

GM's company philosophy and business model is wrong, they are not listening

and Mulally would get eaten alive over there because they don't want change.

[theoldwizard]

It's one of two things:

 

1. Incredible foresight

2. Tremendous luck

 

It's actually a little bit of both.

You are right it is both. But there is more behind the scenes.

 

What most have already forgotten is that Ford cut their white collar staff, including engineering, by at least 33% (probably more by now since they haven't hired many white collars in the past 5-7 years and people do retire/leave) while still designing several new vehicles and powertrains.

 

How could they achieve this, with so few engineers ? Because there is still pockets of engineers who love their jobs so much that they are willing to put in huge amounts of overtime without compensation. Luckily management was smart enough to set realistic goals and guidelines and then get out of the way ans let them run. Don't believe me ? Re-read the article on the new 5.0L (can't find the link). Several times they mentioned the dedication and commitment the engineers had to the project.

 

No the problem is, how do you keep this talent (especially in Engine Engineering) "challenged".

[Consult1]

No the problem is, how do you keep this talent (especially in Engine Engineering) "challenged".

 

I hope that they don't use the former Ford GT team as the basis for that 'learning' experience.

[jpd80]

Global platforms and the use of several divisions dividing up the work has been responsible for a lot of the North American engineering staff reductions. Without the need to develop unique regional platforms, Ford saves bundles on cost, time and resources. I fear Ford Aus days of designing unique cars are gone and they too will fall into line with global aspirations.

[blksn8k2]

Global platforms and the use of several divisions dividing up the work has been responsible for a lot of the North American engineering staff reductions. Without the need to develop unique regional platforms, Ford saves bundles on cost, time and resources. I fear Ford Aus days of designing unique cars are gone and they too will fall into line with global aspirations.

 

There is probably something to be said for allowing/requiring parts suppliers to do some of their own designing and engineering or working with Ford engineers. Their are multiple examples of this. The new aluminum engine block for the GT500 and its use of the PTWA process is one. The process was developed in conjunction with Flamespray Technologies and Honsel AG who is also the engine block supplier.

[theoldwizard]

Global platforms and the use of several divisions dividing up the work has been responsible for a lot of the North American engineering staff reductions. Without the need to develop unique regional platforms, Ford saves bundles on cost, time and resources. I fear Ford Aus days of designing unique cars are gone and they too will fall into line with global aspirations.

Global platforms that are "tailored" to local government mandates by the original designing engineering group are a huge offset for the reduction in NA engineering staff.

 

I'm not certain what you mean by "several divisions".

 

At least in Engineering, everything is set up as "global". People are still struggling with their management sitting of the opposite side of the pond, with only a weekly telephone conference, and maybe "face time" 2-4 times a year. It is not a smooth as many might think.

[jpd80]

Global platforms that are "tailored" to local government mandates by the original designing engineering group are a huge offset for the reduction in NA engineering staff.

 

I'm not certain what you mean by "several divisions".

 

Sorry, I thought you were aware that CD4 has Ford NA as lead engineers but

they are assigning some of the work to FoE and FAPSA. Not a great deal but

some work to take the load off and keep the project on schedule.

[theoldwizard]

Sorry, I thought you were aware that CD4 has Ford NA as lead engineers but

they are assigning some of the work to FoE and FAPSA. Not a great deal but

some work to take the load off and keep the project on schedule.

Being retired, I don't have my finger "on the pulse" these days.

 

I have also noticed that some launch dates seem to have slipped. THIS IS A GOOD THING ! I would rather see them add a few months to "get it right" than to just "push it out the door".

 

One thing that I heard does bother me. While we all know that the "new" Focus was designed in EU, North America will be spearheading the launch. This could result in some "finger pointing" when N.A. Engineers report problems back across the pond.

[jpd80]

One thing that I heard does bother me. While we all know that the "new" Focus was designed in EU, North America will be spearheading the launch. This could result in some "finger pointing" when N.A. Engineers report problems back across the pond.

 

This isn't like the C170 Focus launch, it's basically an evolution of C1 and

regional stakeholders like FNA have had plenty of lead time to get the car

right in any respect. Just don't mention EPA compliant ECUs......

Edited March 29, 2010 by jpd80

[theoldwizard]

This isn't like the C170 Focus launch, it's basically an evolution of C1 and

regional stakeholders like FNA have had plenty of lead time to get the car

right in any respect.

Excuse me, no one from Ford N.A was working on the "evolution of C1" (until the recent hand off), unless they were specifically pulled in by Ford EU ! Ford EU is responsible for meeting all government regulations and delivering a design that can be manufactured with high quality.

 

Yes, I understand it does not make sense to pack up a bunch of EU engineers and send them here for a couple of months. Unfortunately, as I said before, this kind of launch can lead to a lot of finger pointing, especially when the "stake holders" are so far away !