Bloomberg's Doron Levin on Mulally Hire

[dr511scj]

Doron Levin writes what most knowledgable followers of Ford are thinking about the CEO hire.

 

"Bill Ford is the latest of a breed of Detroit auto executive not quite in touch with consumers. Boomers like me loved Mustangs and Camaros, but our children favor Civics and Pathfinders. After relieving Jacques Nasser as chief executive in late 2001, Ford spent five years learning what many already suspected -- that a Ford family scion isn't necessarily well-suited to operate Ford Motor or to fix its many shortcomings. . . . My hunch is that the Ford family, some of whose members rely on dividends from Ford stock for their income, and the company's board encouraged him to find a replacement. "

[RichardJensen]

"most knowledgeable followers"?

 

Please. Can you find a more vague statement?

 

How about "it's a widely accepted fact that Bill Ford is an idiot"?

 

Or

 

"most people know that Ford's days are numbered"

 

Write well, for cryin' out loud. Somedays, I swear, I could count on one hand the people on this board that actually took a composition class and LEARNED from it.

[RichardJensen]

Article is a total waste. Levin has no idea what Mulally's job will be. Seems to think that Mulally will take the lead in discussing things with Ghosn, such will obviously not be the case, as Ford, Jr., remains tasked with the company's 'strategic options', and because Mulally will hardly be in a position to negotiate in depth with Ghosn.

 

Furthermore, what's with all the Renault-Nissan is good for Ford crap? How long would that take to pan out? Five years? Ten years?

 

Ford is not going to find answers to its problems in the auto industry, IMO. Look at the track record of Zetsche and Ghosn this year:

 

Chrysler group sales are down more than Ford Motor sales, and Nissan passenger car sales are down this year while Ford car sales are up.

 

Does this suggest that Ghosn and Zetsche have long term solutions?

 

No. They're just playing the same old games. For Zetsche it was about daring sheetmetal (viz: Virgil Exner, ff.), for Ghosn it's cost cutting (viz. Roger Smith). Now, as before, it has been seen that there are no long term benefits to such short-sighted strategies.

 

I think it's time for outsiders to come into this industry. The prejudice that no outsider can 'master' the 'unique' challenges of running a car company is ridiculous, unfounded, and it is an impediment to real change.

[ZanatWork]

I have never understood the "Ghosn is god" mentaility around the auto media.

 

1. Nissan had nowhere to go but up.

 

2. Many changes (V6 and styling upgrades for the Altima, new Z-car) were obvious needs...obvious to EVERYONE.

 

3. The Maxima and the Altima V6 models currently have more power than their transaxles can smoothly control-viva torque steer, Mr. Ghosn!

 

4. Nissan's sales were dropping while the media was salivating over a Ghosn-Ford tie-up...truly, the blind leading the blind.

 

5. Nissan doesn't really troulbe Toyota or Honda here in terms of sales or quality...so pardon me for not noticing the "genius" here.

[bolita]

I have never understood the "Ghosn is god" mentaility around the auto media.

 

1. Nissan had nowhere to go but up.

 

2. Many changes (V6 and styling upgrades for the Altima, new Z-car) were obvious needs...obvious to EVERYONE.

 

3. The Maxima and the Altima V6 models currently have more power than their transaxles can smoothly control-viva torque steer, Mr. Ghosn!

 

4. Nissan's sales were dropping while the media was salivating over a Ghosn-Ford tie-up...truly, the blind leading the blind.

 

5. Nissan doesn't really troulbe Toyota or Honda here in terms of sales or quality...so pardon me for not noticing the "genius" here.

 

Although I agree that Ghosn is way over rated, I feel that he has done a remarkable job in saving Nissan from an almost certain bankruptcy. But you know what, what happened was that he came in with a different cultural background and did what was considered for ever in Japan a no no. He closed plants, fired people, sold assets which in the west would be absolutely normal but in Japan for a Japanese executive almost impossible to attain. However, Ghosn was able to do this in Nissan while at the same time he had the ability to generate acceptance in Japan. I'll never forget is speech 3 motnhs after he took over Nissan with his ReNISSANce plan. The guy had landed in Japan 3 months ago, and here he was spelling out the Nissan plan in JAPANESE. You have to admire someone that can pick up a language so different as Japanese is to a westerner and master it enough to take on a presentation and press conference in Japanese after 3 months (I assume he was also running the company - not only taking Japanese lessons). SO, yeah, he is probably a gifted remarkable person but IMHO he is not what Ford needs.

 

The more I think of Ford's hiring of Mulally the more it makes sense to me. I, for one, am certain that Ford will not fold. I believe that Ford has the resources it needs to turn around its business, especially in North America where it needs it the most.

[Bob Rosadini]

Read Dan Howes story in today's Detroit News (www.detnews.com). He sums the guy up best when he says...."More Eddie Bauer then Savile Row, more Midwestern then Manhattan, and more likely to roam the product development center then work Wall Street". That makes me feel good. Talk about a 180 from Jac the Knife? As matter of fact I can remember I believe a Business Week story that touted Jac when he first came on the scene because of his taste in Savile Row suits! Enough to make you puke!

 

This guy has personality, a hell of an education, and a proven track record. Just wish I bought a few more share a few weeks ago when it was around 6 bucks! :happy feet:

[dr511scj]

"most knowledgeable followers"?

 

Please. Can you find a more vague statement?

 

There's nothing vague about it.

 

Not every follower of this Ford drama is "knowledgeable" See, e.g. www.blueovalforums.com

 

Not every follower of this Ford drama agrees with Levin. See, supra.

 

But in my opinion, based upon reading a fair amount of commentary, "most" of the "knowledgable" followers of this incident ARE thinking along the lines of what Levin opined.

 

Just because you disagree with an opinion summarily expressed in a one-sentence headline doesn't make it "vague."

Edited September 7, 2006 by dr511scj

[RichardJensen]

Define "most":

 

Define "knowledgeable":

 

State how an objective observer could verify the statement 'most knowledgeable'

 

Saying, "in my opinion, most knowledgeable observers" is far more acceptable, defensible, responsible.

 

Save the opinion stated as fact for the AW boards.

Edited September 7, 2006 by RichardJensen

[one2gamble]

However, Ghosn was able to do this in Nissan while at the same time he had the ability to generate acceptance in Japan.

 

The difference is he didnt need acceptance in Japan....Nissan and its workers had no choice but to follow Ghosns plan or they would all be out of work. Besides...Nissans a French company now

[bolita]

The difference is he didnt need acceptance in Japan....Nissan and its workers had no choice but to follow Ghosns plan or they would all be out of work. Besides...Nissans a French company now

 

You'd be eaten alive like a rare sushi for saying that in Japan!

 

 

One thing that would finalize the sale of Mulally for me would be if he begins his tenure by visiting dealerships and talks to technicians, sales people and the such.

 

If he is as down to earth as it seems (taking 30 minutes for a kid at Boeing) he could easily spend a few hours at different dealerships to really understand whats going on from the consumer point of view...

[RichardJensen]

to really understand whats going on from the consumer point of view...

I think that's the one thing he doesn't need to do. The man's sole connection to the car industry for the last 40 years has been as a consumer.

[bolita]

I think that's the one thing he doesn't need to do. The man's sole connection to the car industry for the last 40 years has been as a consumer.

 

 

Maybe you're right. Hadn't thought of it that way...

[dr511scj]

Define "most":

 

Define "knowledgeable":

 

State how an objective observer could verify the statement 'most knowledgeable'

 

Saying, "in my opinion, most knowledgeable observers" is far more acceptable, defensible, responsible.

 

Save the opinion stated as fact for the AW boards.

 

most -- adj. Constituting or forming a large number; numerous: many.

—Synonyms: multifarious, multitudinous, myriad; divers, sundry, various. many, innumerable, manifold, numerous.

 

knowledgeable--adj 1: highly educated; having extensive information or understanding; "an enlightened public"; "knowing instructors"; "a knowledgeable critic"; "a knowledgeable audience" [syn: enlightened, knowing, learned, lettered, well-educated, well-read] 2: thoroughly acquainted with and skilled in something through study or experience; "well versed in classical languages" [syn: versed] [ant: unversed] 3: alert and fully informed; "politically aware"; "a knowing collector of rare books"; "the most...technically aware of the novelists under thirty"- W.S.Graham; "surprisingly knowledgeable about what was going on" [syn: aware(p), knowing] 4: thoroughly acquainted with through study or experience; "this girl, so intimate with nature"-W.H.Hudson; "knowledgeaIble about the technique of painting"- Herbert Read [syn: intimate, intimate with, knowledgeable about(p)]

 

Given that these adjectives in combination clearly suggest a conclusion based on subjective and objective factors (obviously there are no scientific polls or even recognized tests to determine the number or knowledge level of those following the Mulally hire), the statement you object to as "vague" was obviously a conclusion based on opinion and NOT a concrete "fact." [oops, I left out the "not" in the first draft]

However, given that Levin's opinions have been reprised in various fora (including this one) by a number of others, the obvious opinion stated in the hyperlink is not unreasonable or indefensible.

Edited September 7, 2006 by dr511scj

[dr511scj]

I think that's the one thing he doesn't need to do. The man's sole connection to the car industry for the last 40 years has been as a consumer.

 

I've been a shopper at Wal-Mart for decades. So under your standard, that qualifies me to be Wal-Mart's CEO (assuming I've got the other "universal" executive skills honed in a marginally similar industry) I mean, I know all about "discount retailing" from a customer perspective . . . .

 

The fact that the guy bought a boring appliance car and probably can drive himself around in it doesn't give him a pass on listening to Ford's dealers and customers to gain a BROADER PERSPECTIVE ON THE MARKET!

[ZanatWork]

I've been a shopper at Wal-Mart for decades. So under your standard, that qualifies me to be Wal-Mart's CEO (assuming I've got the other "universal" executive skills honed in a marginally similar industry) I mean, I know all about "discount retailing" from a customer perspective . . . .

 

The fact that the guy bought a boring appliance car and probably can drive himself around in it doesn't give him a pass on listening to Ford's dealers and customers to gain a BROADER PERSPECTIVE ON THE MARKET!

 

 

There's spinning, then there's the bit when it becomes a blur.

 

Considering all the man's qualities that have been discussed here, that first sentence is pretty amazing...and you've discussed these qualities with the poster in question.

 

I'm trying to find ANYWHERE that anyone suggests giving a pass on the the dealers, or FORD'S customers...and I don't imagine that there's any possibility of missing anything that obvious.

Edited September 7, 2006 by ZanatWork

[Nels Nelson]

Mike Shedlock at Global Economic Analysis does a brief financial analysis of Ford and concludes they are bankrupt. It may indeed be too late.

 

http://globaleconomicanalysis.blogspot.com/

[DCK]

How about "it's a widely accepted fact that Bill Ford is an idiot"?

 

I think it is more of everyone knows that Bill Ford just couldn't handle running the company, yeah some good things happen under him, but too many problems occured and the products just weren't there, those far out weigh the good things he did, He still chairman of the board which i feel fits him better.

 

"most people know that Ford's days are numbered"

They certainly were numbered if they continued the same old same old. Anyone who thinks they weren't is a fool. They are changing for the better so hopefully their days aren't numbered, the new product needs to be what the public wants, we'll see in 2010 how far they have gotten...................but if they never changed, they would be out of business or bought out by 2015.

[RichardJensen]

I've been a shopper at Wal-Mart for decades.

Yeah. Now if you were also at present an officer of a company in a similar industry, I'd be inclined to give you some credit for knowing 1) what customers want, and 2) how to get your executive VPs to deliver it.

 

Mulally obviously needs to understand how Ford's sales organization works, and how the company measures dealership performance, but he certainly doesn't need to stretch to get a 'customer' perspective on the industry.

[DCK]

5. Nissan doesn't really troulbe Toyota or Honda here in terms of sales or quality...so pardon me for not noticing the "genius" here.

Last i checked Nissan ousold Honda world wide. Honda is clearly produces the best quality products if you look at the company as a whole, But to say Nissan doesn't trouble honda is sales means you know little about the industry. Even in America the past 5-6 years Nissan shot up and certainly worried Honda, now they are leveling off, but to say the didn't trouble honda is just not true.

[RichardJensen]

The fact that the guy bought a boring appliance car and probably can drive himself around in it doesn't give him a pass on listening to Ford's dealers and customers to gain a BROADER PERSPECTIVE ON THE MARKET!

DUH.

 

You didn't read my blog that well did you?

 

What you didn’t learn from being a customer yourself, you can learn by asking smart questions of the right customers.

Oh, and one more thing: you’ve been quoted as saying you drive a Lexus LS430 because “it’s the best vehicle in the world.” Hey, I admire your honesty, and your willingness to state your opinion, just as long as you remember that there are just about as many answers to that question as there are customers.

 

Point is, he's already been a customer. Which as has been mentioned before, makes him a unique person in this business.

Edited September 7, 2006 by RichardJensen

[Edstock]

"the statement you object to as "vague" was obviously a conclusion based on opinion and a concrete "fact."

 

Squeal all you want to the contrary, it's vague and opinionated — and ignorant to "most knowledgeable followers" of this site.

[Guest Sixcav]

It's just such a shame that all of you automotive and literary geniuses are here wasting your time babbling away on this stupid ass website instead of out there running Ford or Chrysler and saving them from themselves.

 

PS -- For those of you not bright enough to figure it out that was sarcasim. You bunch dumb asses couldn't navigate your way out of a pair of wet underwear without busting your asses at least twice.

Edited September 7, 2006 by Sixcav

[ZanatWork]

PS -- For those of you not bright enough to figure it out that was sarcasim.

 

For those of you not bright enough to spell it, it's s-a-r-c-a-s-m. Thanks for playing!

Edited September 7, 2006 by ZanatWork

[dr511scj]

There's spinning, then there's the bit when it becomes a blur.

 

Considering all the man's qualities that have been discussed here, that first sentence is pretty amazing...and you've discussed these qualities with the poster in question.

 

I'm trying to find ANYWHERE that anyone suggests giving a pass on the the dealers, or FORD'S customers...and I don't imagine that there's any possibility of missing anything that obvious.

 

Bolita: "If he is as down to earth as it seems (taking 30 minutes for a kid at Boeing) he could easily spend a few hours at different dealerships to really understand whats going on from the consumer point of view..."

 

 

Jensen: "I think that's the one thing he doesn't need to do. The man's sole connection to the car industry for the last 40 years has been as a consumer."

 

Zan, what would be the reasonable inference? It seems that Jensen believes Mulally doesn't need to talk with customers or "spend a few hours at different dealerships."

 

After all, I'm certain that some brass hat Boeing Veep buying an $80,000 Lexus in Seattle creates a "universal" customer perspective applicable thoughout Ford's thousands of dealerships nationwide.

 

Jensen, of course, skirts the issue by referring to "smart questions" of the "right customers" and disclaiming that forty years of consumin' yields all the answers. But he doesn't really explain how Mulally will meet the "right customers" or get anything of value from them.

 

The implication is Mulally, in Jensen's world, will wedge in a few pre-aranged "focus groups" (e.g. orchestrated dog-n-pony shows often calculated to CY someone's A, in my experience) or high-level executive pow-wows with the "right" customers (often involving drinks and golf trips, and leading to plenty of sucking-up behaviors) or perhaps a carefully choreographed "road show" of "state visits" (to borrow Tom Peters's sarcastic phrase for these overly-structured executive field trips which are nothing more than "showing the flag" to the troops and insulating the boss from harsh or unpleasant realities).

 

None of the foregoing tend to yield accurate, unfiltered information.

 

Random, first hand sampling, however, could be a valuable augment to more scientific approaches--most certainly for someone who hasn't really thought much about unique automotive issues.

[one2gamble]

Lets get something clear for the new CEO. If he can make Fords Service Departments a pleasure to work with and be in then a good portion of the companies problems could get cured.

 

Also when I shop for a car I dont want to do it at a dealership that was/looks like it was built in the 50's. Make your dealers upgrade the infrastructure.