silvrsvt Posted May 25, 2018 Share Posted May 25, 2018 https://www.nytimes.com/2018/05/24/business/ford-mustang-american-icon.html 2 Quote Link to comment Share on other sites More sharing options...
rperez817 Posted May 25, 2018 Share Posted May 25, 2018 Good info from Morgan Stanley analyst Adam Jonas in that article. It makes sense that Mustang is the one profitable passenger car model in Ford's U.S. lineup. It's the one Ford car that lots of people recognize and respect. "Using Ford’s disclosures, Morgan Stanley automotive analyst Adam Jonas extrapolated that the low performing businesses accounted for 40 percent of Ford’s revenue yet sharply reduced the company’s earnings. Ford didn’t say which models fall into the category, but Mr. Jonas included North American passenger cars and Lincoln models. (So far, at least, Ford hasn’t altered its Lincoln lineup, which includes several passenger sedans.) Mr. Jonas applauded Ford’s decision to drop most of its passenger cars, assuming the company actually follows through on it. “If a disproportionate effort is going into products that don’t make money and consumers don’t want, then what are they doing?” he asked. Ford doesn’t break out financial results by model, but Mr. Jonas believes the Mustang is modestly profitable." 1 Quote Link to comment Share on other sites More sharing options...
Assimilator Posted May 25, 2018 Share Posted May 25, 2018 (edited) Even if the Mustang barely earns its keep, they are unlikely to kill off a vital component of their brand DNA. It's very hard to make money by being the cheapest. Edited May 25, 2018 by Assimilator 2 Quote Link to comment Share on other sites More sharing options...
rperez817 Posted May 25, 2018 Share Posted May 25, 2018 (edited) Even if the Mustang barely earns its keep, they are unlikely to kill off a vital component of their brand DNA. It's very hard to make money by being the cheapest. Well said Assimilator. I think because Mustang has such a rich heritage and is so well recognized, Ford wouldn't kill the Mustang even if it was a money loser. Good thing for Ford that Mustang contributes to Ford's profitability even if it is modest. Other Ford passenger cars for the most part don't have a good reputation in the U.S. The people who buy those Ford cars only buy for the deal, because the cars themselves are mediocre at best. Smart move for Ford to get away from that kind of money losing business. Edited May 25, 2018 by rperez817 1 Quote Link to comment Share on other sites More sharing options...
2b2 Posted May 25, 2018 Share Posted May 25, 2018 (edited) ...the Mustang’s survival isn’t really about numbers. “Five years from now, whether Ford decided to keep the Mustang or not isn’t going to be a material factor,” Mr. Jonas said. “It’s more of an emotional thing. They’re trying to preserve the sexuality of motoring the way it used to be known."... Even if the Mustang barely earns its keep, they are unlikely to kill off a vital component of their brand DNA. It's very hard to make money by being the cheapest. sure sounds to me like that cheapo route is exactly what Hatchett is trying for 2 sides of same coin cheap to customers == Profit to shareholders Edited May 25, 2018 by 2b2 Quote Link to comment Share on other sites More sharing options...
30 OTT 6 Posted May 25, 2018 Share Posted May 25, 2018 As Pete D. says: F-150 is the Franchise, Mustang is the Soul. 5 Quote Link to comment Share on other sites More sharing options...
mackinaw Posted May 25, 2018 Share Posted May 25, 2018 sure sounds to me like that cheapo route is exactly what Hatchett is trying for 2 sides of same coin cheap to customers == Profit to shareholders What cheapo route is that? Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted May 25, 2018 Share Posted May 25, 2018 What cheapo route is that? Cutting costs literally everywhere they can. 1 Quote Link to comment Share on other sites More sharing options...
mackinaw Posted May 25, 2018 Share Posted May 25, 2018 Cutting costs literally everywhere they can. And this is bad because? Quote Link to comment Share on other sites More sharing options...
Assimilator Posted May 25, 2018 Share Posted May 25, 2018 (edited) Detroit has only a handful of genuine global automotive icons...Mustang, F-150, Wrangler, Corvette, Escalade...if any of these go away than so has the company. Edited May 25, 2018 by Assimilator 1 Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted May 25, 2018 Share Posted May 25, 2018 And this is bad because? That kind of management rarely ends well in the auto industry, at least in the way that Hackett is going about doing it. 1 Quote Link to comment Share on other sites More sharing options...
mackinaw Posted May 25, 2018 Share Posted May 25, 2018 Every manufacturer is racing to cut costs. Toyota, by far the richest car company on the planet, is now in "crisis mode," according to its CEO. Until somebody sees and drives a next-gen Mustang, it's ridiculous, now, to say that it's a "cheapo." Quote Link to comment Share on other sites More sharing options...
rperez817 Posted May 25, 2018 Share Posted May 25, 2018 Every manufacturer is racing to cut costs. Toyota, by far the richest car company on the planet, is now in "crisis mode," according to its CEO. Akio Toyoda is correct when he said this. "Over the next 100 years, there is no guarantee that automobile manufacturers will continue to play leading roles in mobility. A crucial battle has begun — not one about winning or losing, but one about surviving or dying." That's the crisis mode he is talking about. It affects all the major global automakers. These companies have to be ready for what Toyoda says is a "once-in-a-century transformation" of the whole automotive industry. For Ford, it's going to be a delicate balance. They have to preserve the good reputation of iconic cars and trucks like Mustang and F-Series. At the same time they have to invest in things like autonomous cars and mobility services. Ford has to be very "fit" financially and operationally to do all that. I have a lot of respect for Hackett as he cuts costs and prepares Ford to survive in the future. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 25, 2018 Share Posted May 25, 2018 (edited) And this is bad because? They want to keep $25 Billion over the next five years... The one thing missing from recent Ford communications is quality, maybe Profit is now Job 1. Edited May 25, 2018 by jpd80 2 Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted May 26, 2018 Share Posted May 26, 2018 They want to keep $25 Billion over the next five years... The one thing missing from recent Ford communications is quality, maybe Profit is now Job 1. there is no maybe in that statement. 1 Quote Link to comment Share on other sites More sharing options...
2b2 Posted May 26, 2018 Share Posted May 26, 2018 (edited) Every manufacturer is racing to cut costs. Toyota, by far the richest car company on the planet, is now in "crisis mode," according to its CEO. Until somebody sees and drives a next-gen Mustang, it's ridiculous, now, to say that it's a "cheapo." I was thinking more like until somebody goes to see and drive a Fiesta,Focus,FUSION,Taurus...can only get a Mustang & says "cheapskates"... ...while tieing suticases &or kids to the roof NAH, you knew that Edited May 26, 2018 by 2b2 Quote Link to comment Share on other sites More sharing options...
2016RS Posted May 26, 2018 Share Posted May 26, 2018 Ford is offering retirement packages to Salary.Last time they did that it was to show how serious Ford is about cutting cost's.... 1 Quote Link to comment Share on other sites More sharing options...
ice-capades Posted May 26, 2018 Share Posted May 26, 2018 Ford is offering retirement packages to Salary. Last time they did that it was to show how serious Ford is about cutting cost's.... They hired tens of thousands of salaried workers under Fields with little if anything to show for it other than a big increase in fixed expenses. No improvement in quality, more recalls, etc. Quote Link to comment Share on other sites More sharing options...
SoonerLS Posted May 26, 2018 Share Posted May 26, 2018 They hired tens of thousands of salaried workers under Fields with little if anything to show for it other than a big increase in fixed expenses. No improvement in quality, more recalls, etc. The problem with replacing old, expensive engineers with green, inexpensive engineers is that the old guys have the one thing that you can only get by doing the job over time: experience. I've long said that experience is that which allows us to recognize our mistakes the next time we make them, but experience is also what makes an engineer know that the machine doesn't apply thread locker all the way to the end of the bolt, so you need a bolt long enough for the thread locker to get into the connection, not just long enough to engage the threads. It never fails to amaze me that manglement can't grasp that simple fact that those old engineers are so expensive because they're worth it... 1 Quote Link to comment Share on other sites More sharing options...
Harley Lover Posted May 26, 2018 Share Posted May 26, 2018 It never fails to amaze me that manglement can't grasp that simple fact that those old engineers are so expensive because they're worth it... Management does not care. Cost cuts matter much more. 2 Quote Link to comment Share on other sites More sharing options...
probowler Posted May 26, 2018 Share Posted May 26, 2018 The mustang may be an Icon but if Ford cheaps out on it like their other cars, the quality dives... and Mustangs start being recalled and seen as inferior by the public.... I think that would be really bad for Ford. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 27, 2018 Share Posted May 27, 2018 (edited) The mustang may be an Icon but if Ford cheaps out on it like their other cars, the quality dives... and Mustangs start being recalled and seen as inferior by the public.... I think that would be really bad for Ford. I take it as the increased tech and performance in the 2018 Mustang didn't convince you that Ford is improving it in response to Camaro's long list of features and extras.... Quality is one thing not mentioned in Fords most recent communications Ford cannot possibly take $25 Billion out of projects in the next five years and not expect problems with quality at all supply and manufacturing levels. It's like taking away one of the three main pillars Raj Nair spoke about last year, Quality of product, dealer experience and communication with potential buyers. Edited May 27, 2018 by jpd80 Quote Link to comment Share on other sites More sharing options...
kyle Posted May 27, 2018 Share Posted May 27, 2018 For Ford, it's going to be a delicate balance. They have to preserve the good reputation of iconic cars and trucks like Mustang and F-Series. At the same time they have to invest in things like autonomous cars and mobility services. Ford has to be very "fit" financially and operationally to do all that. I have a lot of respect for Hackett as he cuts costs and prepares Ford to survive in the future. Please tell me you work for Ford and all will be forgiven? This "Fit" phrase is literally the one of the stupidest things i have heard watching this industry, and only picked up since he joined the company by all his lieutentants. I'm glad you think he is a rock star but you are way more of the exception. So if Toyota is in a major crisis mode, they are also redoing the Corolla, the Camry, the Avalon, coming out with a new Supra, just introduced a ton of new Lexus sedan models......so they see the fight differently. Not saying one is right and another is wrong, but Toyota will kick Ford's ass all over the place at the gym and in earnings. If this guy is still at Ford in the next 24 months I will be shocked-hopefully I am wrong, but if anything, Hackett needs to go on nutri-systems and get his on commercial, away from Ford. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 27, 2018 Share Posted May 27, 2018 (edited) Please tell me you work for Ford and all will be forgiven? This "Fit" phrase is literally the one of the stupidest things i have heard watching this industry, and only picked up since he joined the company by all his lieutentants. I'm glad you think he is a rock star but you are way more of the exception. So if Toyota is in a major crisis mode, they are also redoing the Corolla, the Camry, the Avalon, coming out with a new Supra, just introduced a ton of new Lexus sedan models......so they see the fight differently. Not saying one is right and another is wrong, but Toyota will kick Ford's ass all over the place at the gym and in earnings. If this guy is still at Ford in the next 24 months I will be shocked-hopefully I am wrong, but if anything, Hackett needs to go on nutri-systems and get his on commercial, away from Ford. I've always maintained that Hackett is out there and his MBA stick doen't fly in a large corporate like Ford. Sure, he will drive them in the direction of maximizing profits by selectivity or is that wholesale abandonment of segments now seen as "non-viable". all for the sake of some magic 12% return number he has promised without consideration of foreseeable head winds. hackett is listening to guys like Farley who is telling him what he wants to hear and they are all screwing / juicing Ford in the direction of maximized leverage and profit so that their huge bonuses will continue. All of which may run counter intuiative to the long term well being of Ford and its products. Nowhere is anyone talking about quality or class leading products, it's all about profits...so what are customers to think? "Saving" $25 Billion over five years by cutting costs and screwing down suppliers could come at an even bigger cost. Edited May 27, 2018 by jpd80 2 Quote Link to comment Share on other sites More sharing options...
J-150 Posted May 27, 2018 Share Posted May 27, 2018 hackett is listening to guys like Farley who is telling him what he wants to hear and they are all screwing / juicing Ford in the direction of maximized leverage and profit so that their huge bonuses will continue. All of which may run counter intuiative to the long term well being of Ford and its products. My question is where the Board is in all of this. Historically, the Board has wielded significant power at Ford as the family wants input into the long term success of their fortune. It's great that Bill thinks Hackett is "da bomb" but where is the rest of the Board and family in keeping this sinking ship afloat? Quote Link to comment Share on other sites More sharing options...
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