WSJ Front Page Story on Hackett

[rmc523]

 

Google WSJ Ford Hackett, that should take you there.

 

I'm unable to read it, as I'm not a subscriber.

 

I will say, he looks creepy in that picture, though.

 

I don't think the problem is North American product. Dumping slow selling low profit sedans and replacing them with CUV's is sound logic, along with the continued focus on light trucks. The problems are Europe, South America, and lack of traction in China as mackinaw pointed out. I think we will see a pull out of the South American market pretty soon, and I think leaving Europe is a distinct possibility, particularly if the right deal comes their way. China will require serious effort, but I think it is vitally important to Ford's future in the long run.

 

The "right deal" ? It's not as if they can sell it to someone like GM with Opel. Global Ford models are sold there, they'd either have to just leave altogether or stick it out.

[fuzzymoomoo]

Hackett looks creepy in every picture

[mackinaw]

Hackett looks creepy in every picture

 

Did you see the picture of him wearing a sun-hat at last week's Mustang celebration in front of the Glass House? A dark suit, and a large, floppy sun-hat make for a bizarre image.

[jcartwright99]

 

Did you see the picture of him wearing a sun-hat at last week's Mustang celebration in front of the Glass House? A dark suit, and a large, floppy sun-hat make for a bizarre image.

 

Yeah, he could of picked up a better hat than that. Although, his head is of the very large variety. I did get a chuckle though. He probably would never wear a baseball cap.

[jpd80]

I don't think the problem is North American product. Dumping slow selling low profit sedans and replacing them with CUV's is sound logic, along with the continued focus on light trucks. The problems are Europe, South America, and lack of traction in China as mackinaw pointed out. I think we will see a pull out of the South American market pretty soon, and I think leaving Europe is a distinct possibility, particularly if the right deal comes their way. China will require serious effort, but I think it is vitally important to Ford's future in the long run.

car sales in North America are now "nice to have but not essential" so it is more appropriate

to switch those plants to more profitable trucks and Utilities - I get that but, does that plan

also transpose to Europe and other parts of the world?

 

Hackett has inherited global operations that border on being a terminal basket case,

run down product that's now being replaced sees up front charges eating into profit

but more is still needed as global pivots from mondeo, C-Max and S-Max to more

utilities.

 

China is similar with stale product but the bigger issue there is Ford's Chinese partners.

Due to Ford's late start there (thanks Mark Shulz) all the major Chinese brands had

already partnered with other Western competitors and Ford was stuck with its more

minor partners which struggle to make a sales impact.

 

Keep in mind that Hackett's goal is 8% return across the company and to do that,

North America is going to need to run at 13% or better - you can't get there without

a rich product mix and absolutely no economic / financial headwinds.

 

Wouldn't it be ironic if Fields delayed new product and cancelled SLP based on a slowdown that didn't occur

while Hackett is more aggressive doubling down on utilities just as the US and global economies begin to cool..

Edited August 17, 2018 by jpd80

[Bob Rosadini]

Well I think some of you guys are being unfair picking on his appearance- remember- he got the job because he is "cerebral".

Silversvt says 10 years out. How about 20? Or when Car and Driver has a name change to Car and Sofa.

 

Whatever happened to "America's love for the automobile"? Suddenly we are told that we all want to sit on our asses and let the car take the joy out of driving?? How the hell does Ford sell Mustang GTs, GM Camaros? etc etc. Are we reading all kinds of articles that ignore the fun factor in a car?

 

I don't think so. Like lemmings, the industry is running toward the cliff because hi tech says that is the way to go.

 

But I recognize- I'm an old guy who enjoys his SHO and his class 8 truck (with two sticks-and current commercial plates) ) and has to get his ass in gear to get his 68 Bronco back on the road.

[jpd80]

 

Well said akirby sir. One example of market shift is mass adoption of autonomous vehicles and corresponding drop in traditional car/truck sales to consumers. Cox Automotive predicts this will happen within 5 years. Hackett has the vision and business knowledge to get Ford ready for this shift.

 

Thanks for providing that chart as it sums up Ford's assumptions of AVs perfectly.

I have to wonder about the foundations of that belief or the expected inflection point timing.

 

Could it be that Ford is trying to engineer an outcome here by trying to steer a market shift

rather than just responding to an anticipated market shift?

 

While I'm skeptical of AV roll out volume, hybrid and PHEV tech rollout could be a major win

for Ford with retail and commercial.

[fuzzymoomoo]

 

 

Whatever happened to "America's love for the automobile"? Suddenly we are told that we all want to sit on our asses and let the car take the joy out of driving?? How the hell does Ford sell Mustang GTs, GM Camaros? etc etc. Are we reading all kinds of articles that ignore the fun factor in a car?

My generation of entitled idiots Millenials were the beginning of the end of that. Uber and Lyft were the end.

[akirby]

Ford’s AV plans are commercial fleets and a cloud management platform. Not retail.

[Harley Lover]

Well said akirby sir. One example of market shift is mass adoption of autonomous vehicles and corresponding drop in traditional car/truck sales to consumers. Cox Automotive predicts this will happen within 5 years. Hackett has the vision and business knowledge to get Ford ready for this shift.

 

 

Want to read what Cox Automotive thinks this week?

 

 

 

Survey shows half of consumers don't want self-driving cars

 

Ford sees that as a signal to slow its testing

 

 

The auto industry is spending billions of dollars to develop self-driving cars but a new survey from Cox Automotive shows nearly half of consumers don't want them.

The 2018 Cox Automotive Evolution of Mobility Study did show that consumers have a strong interest in automated safety features, such as automatic braking. But 49 percent said they would not want a fully autonomous vehicle, up from 30 percent from two years ago.

The Cox Automotive report attributes some of the public's growing skepticism of self-driving cars with some recent accidents, but it says there may be more to the equation. The report notes that survey subjects who were unaware of these accidents, including a March pedestrian death in Arizona, were just as likely to want to drive their own vehicle as someone who knew about the accidents.

That consumer sentiment apparently counts for very little, as the auto industry is racing to put fully autonomous cars on the nation's roadways. Ford, however, is tapping on the brakes.

In a lengthy report to the U.S. Department of Transportation, the Detroit automaker explained how it plans to safely and carefully test its self-driving vehicles on public roads. In the report, Ford said it is vital to earn the public's trust before fully launching the new technology.

 

Wow, looks like Cox Automotive has modified its tune. Whodathunkit?

https://www.consumeraffairs.com/news/survey-shows-half-of-consumers-dont-want-self-driving-cars-081618.html

Edited August 18, 2018 by Harley Lover

[7Mary3]

The "right deal" ? It's not as if they can sell it to someone like GM with Opel. Global Ford models are sold there, they'd either have to just leave altogether or stick it out.

 

I am thinking a joint venture to start. Biggest problem is their may not be any interested parties at this point.

[jpd80]

 

I am thinking a joint venture to start. Biggest problem is their may not be any interested parties at this point.

You're forgetting VW, there's huge potential for a JV in Europe and globally.

 

 

I think the automotive industry in general is over reading the desire for AVs

and it wll be a much slower roll out than even EVs.

Edited August 18, 2018 by jpd80

[Joe771476]

Jasonj80........I agree that Ford should go private and not have to be pressured by the shareholder value mentality. Sorry if I've offended any shareholders. That's what Musk is threatening to do with Tesla. Like I said in another thread, all that was accomplished by abandoning Class 8 heavy truck, farm tractor and even aerospace way back when, was the emaciating and emasculation and the LOWERING of shareholder value of a once mighty powerhouse.

[Rifle]

I sure hope that the product line coming, has been properly thought out. I understand the reasoning for dropping sedans, but then I look at the Transit Connect, CMax, and EcoSport. A lot has to be done in a hurry! The Ranger should have been out five years ago.

Edited August 22, 2018 by Rifle

[jpd80]

Jasonj80........I agree that Ford should go private and not have to be pressured by the shareholder value mentality. Sorry if I've offended any shareholders. That's what Musk is threatening to do with Tesla. Like I said in another thread, all that was accomplished by abandoning Class 8 heavy truck, farm tractor and even aerospace way back when, was the emaciating and emasculation and the LOWERING of shareholder value of a once mighty powerhouse.

But see, the Ford Family thanks to its original undiluted stock control 40% of the vote

which makes it almost impossible for a stockholder revolt. So in essence, Ford Motor

is a publicly listed company that actually behaves more like a private one with very

little input from regular stockholders.

 

The reason what they support a good dividend to stockholders is because that's the way

the Ford family derives most of its income, roughly $40 million a year at the moment

 

Unlike Tesla, the Fords were smart enough to invite Adam Jonas from Morgan Stanley

"under the tent" to be briefed about pland and up coming product well before it was

announced.

Edited August 22, 2018 by jpd80

[theoldwizard]

A friend just went golfing with a bunch of Ford engineers (it IS a Ford golf league !). A lot of talk about how the latest round of early retirement have left many "pockets"/projects with no one with more than 5 or 10 years experience ! One case mentioned left one engineer with less than 5 years of experience and a supervisor with about 10 years !

Edited August 23, 2018 by theoldwizard

[jasonj80]

A friend just went golfing with a bunch of Ford engineers (it IS a Ford golf league !). A lot of talk about how the latest round of early retirement have left many "pockets"/projects with no one with more than 5 or 10 years experience ! One case mentioned left one engineer with less than 5 years of experience and a supervisor with about 10 years !

There are a few people I did FCG rotations that have officially retired from Ford. The company is very young, it's not just Ford though DTE where the one went to work is in the same boat - 70% of their workforce can retire in the next 7 years. That is the one problem with buyouts is you will repeat mistakes and I'm not sure the cost savings are really there. If you eliminate the position you have a savings but most of these positions are in engineering and Ford is desperate for more engineers. Which leads to the what the next one is doing, she works for Ford as a contract and makes almost double what she did before...

[akirby]

If only the older workers know what they’re doing then managers aren’t doing their jobs. With the right mentoring and training experience - while still important - isn’t as big of an issue when someone retires.

[jcartwright99]

If only the older workers know what they’re doing then managers aren’t doing their jobs. With the right mentoring and training experience - while still important - isn’t as big of an issue when someone retires.

 

True. Allso internal documentation is critical in these situations. If I get hit by a bus, will my coworkers understand what I do, how to do it, and where the necessary resources are to do it? You must force people to do this because they will start to knowledge hoard for "job security".

[fuzzymoomoo]

What people need to realize in the auto industry is job security is a myth. Its one of the most volatile industries in the world.

[fordmantpw]

What people need to realize in the auto any industry is job security is a myth.

 

FTFY!

[akirby]

I had a 3rd/4th level manager who always said everyone is “releasable” at any time. Any manager who tried to say one of their reports was not releasable was told that they weren’t doing their job if that was the case.

 

Experience helps you prevent mistakes but it also can keep you trapped doing things the old way. Sometimes you need new ideas and a new perspective on things even if it means a few mistakes here and there.

[Sherminator98]

The lack of engineers isn't a Ford specific thing-my last job we had issues getting engineers. Most new engineer graduates are coming from overseas-which was a major issue with us, since they needed to have security clearances.

 

Seems like there is going to be a shortage of younger workers-the past couple jobs I've worked I've been on of the "younger" workers and I'm almost mid-40

[rperez817]

Autoextremist is criticizing Hackett again. http://www.autoextremist.com/current/2018/8/20/a-tale-of-two-fords.html?printerFriendly=true

 

 

"Hackett is a decent and nice guy who should be leading a think tank somewhere for Ford, and if any ideas bubble up to the surface from it then congratulations will be in order.

But he is not a CEO. In fact, he is the wrong man, at the wrong time, at the wrong company."

 

 

[fuzzymoomoo]

Autoextremist is criticizing Hackett again. http://www.autoextremist.com/current/2018/8/20/a-tale-of-two-fords.html?printerFriendly=true

 

 

 

Hes not wrong