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A not so nice view on Hackett


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4 minutes ago, fuzzymoomoo said:

He's certainly not saying it publicly like he should. All he talks about is "fitness" and various ways of cost cutting. Still only one public mention of quality during his entire tenure so far. 

I agree the PR could be better and no mention of quality is a bit concerning.  However.....

Ford has made their product plans VERY clear.   A BEV platform with at least 2 vehicles - a crossover and a full sized truck - and more available as the market dictates.   Hybrid everything including PHEVs.   New Ranger, Bronco and Maverick.  New Explorer, Aviator, Escape and Corsair.   And Transportation as a Service including autonomous vehicles.   And other info not announced but available to anyone wanting to research it.   And a business plan to pursue higher profit margin segments and vehicles and to exit some MOW unprofitable situations.

That's a pretty solid plan in the current environment.  The problem is it's not sexy except for a couple of vehicles and wall street doesn't care about long term benefits.  So I'm not sure what Hackett could say that hasn't already been said that would help much.

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21 minutes ago, akirby said:

I agree the PR could be better and no mention of quality is a bit concerning.  However.....

Ford has made their product plans VERY clear.   A BEV platform with at least 2 vehicles - a crossover and a full sized truck - and more available as the market dictates.   Hybrid everything including PHEVs.   New Ranger, Bronco and Maverick.  New Explorer, Aviator, Escape and Corsair.   And Transportation as a Service including autonomous vehicles.   And other info not announced but available to anyone wanting to research it.   And a business plan to pursue higher profit margin segments and vehicles and to exit some MOW unprofitable situations.

That's a pretty solid plan in the current environment.  The problem is it's not sexy except for a couple of vehicles and wall street doesn't care about long term benefits.  So I'm not sure what Hackett could say that hasn't already been said that would help much.

How about starting to share a little more about where the autonomous vehicle program is heading? Sure we pretty much have it figured out here (or at least have a good idea of where it might be heading) but it might do wonders for getting investors off his back a little bit. 

 

And ffs PLEASE give us a better idea of wtf a "white space" vehicle is...

 

Edit: one more thing, start preaching quality internally too. The only people I ever hear mention quality is the Union. That's a problem. 

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4 minutes ago, fuzzymoomoo said:

How about starting to share a little more about where the autonomous vehicle program is heading? Sure we pretty much have it figured out here (or at least have a good idea of where it might be heading) but it might do wonders for getting investors off his back a little bit. 

It seems AV's have lost some of their luster during 2018.  I think the realization of how difficult it is to build an all-season AV has finally sunk in.  That, plus a few well-publicized accidents have caused almost everybody to pull back.

The big news with Ford and AV's is if VW agrees to partner with them on Argo.  That though, is still a work in progress.

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Ford has already made it clear publicly what their plan is for AVs.  They will be commercial vehicles hauling passengers and/or cargo with a cloud based management system.  They've shown examples of pizza deliveries and package deliveries.   

That's it and it's crystal clear.   The problem is wall street doesn't know how to gauge the investment or profit potential.

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12 minutes ago, mackinaw said:

It seems AV's have lost some of their luster during 2018.  I think the realization of how difficult it is to build an all-season AV has finally sunk in.  That, plus a few well-publicized accidents have caused almost everybody to pull back.

The big news with Ford and AV's is if VW agrees to partner with them on Argo.  That though, is still a work in progress.

Focusing only on commercial vehicles will help a lot since they can either avoid most real world issues by operating in a controlled environment (theme parks, campuses, factories, etc.) or by shutting down during extreme weather.

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4 hours ago, theoldwizard said:

I only know one person still at Ford in a management position.  He got a nice promotion about 2 years ago and had to sign a contract for a minimum number of years.  They are working him to death, handling pre-production issue on 3 different continents.  He is very tight lipped and will only say he can not wait for the contract to be up so he can retire.

Several of my fellow retires, including ones that have pretty much direct access to Hackett have expressed their displeasure to him on the way things are going.

I have one contact left at Ford.  She's the sister of an old high school buddy who I see maybe once/year.  She works in EV's and is very happy with how things are going.  Not surprising I guess, EV's are one of the places you want to be right now if you work in the auto industry.

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A huge amount of the current frustration with Ford is the extended limbo period that we're currently inhabiting; we're years into the rumors regarding the Bronco, the forthcoming electrification, which we've seen the cars getting cut and two recent offerings (Ecosport and Ranger) coming in as aging place holders.

Granted, the Ranger is being welcomed with impressive sales...but the big news with Ford has mostly been news, not anything in the metal.

This is an odd position for me, as I'm very much an analog guy that's always interested in the performance models first and foremost; I generally spend little time caring about the run-of-the-mill offerings.  That said, I'm with many other Blue Oval fans that are watching carefully to see if Ecosports and Escapes will truly supplant the Fiesta/Focus/Fusion sales in the market.  Does and Edge make for an attractive Taurus alternative?  Will the showroom suffer from being 70+ percent CUV blobs, with only the occasional Mustang or F-series making and visual difference?

The undeniable importance of the new Explorer and Super Duty aside, we're still just around the corner from...well, we're not quite sure.  We get snippets about dealers being impressed with "Mach E" previews and get glimpses of forthcoming PHEV tech in the imminent models...but we've basically been led to believe that there's a new Ford era dawning in the next 1-2 years, after years of rumor and delays.

Wall Street can go commit a physical/carnal impossibility for all I care...but the brand's fans have plenty of cause to be frustrated.  How much of that rests on Fields vs. Hackett, I'm not certain.

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7 minutes ago, ZanatWork said:

I'm with many other Blue Oval fans that are watching carefully to see if Ecosports and Escapes will truly supplant the Fiesta/Focus/Fusion sales in the market.

They don't have to supplant sales, just profits.

Escape tops out in the mid $30Ks.  Edge near $50K.   Focus and Fusion never came close to that.  Even the Fusion Sport is $10K less than the Edge ST.

Ford will make twice as much profit from half as much volume.

 

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2 hours ago, akirby said:

No, that's an across the board thing not just for short lived models - reducing option combinations.   I do expect a few more options next year and even more after the new model but you still won't have as many option combinations as in the past.

Oh I get that - but they've shown with trucks that they're still going to keep a wide array of options available, while cutting back on combos on "regular" models.  My point was for that Ranger specifically they kept it simpler than they otherwise would have (holding off on something like an alternate powertrain, Raptor model, etc.) because it's a stop gap model.

33 minutes ago, ZanatWork said:

A huge amount of the current frustration with Ford is the extended limbo period that we're currently inhabiting; we're years into the rumors regarding the Bronco, the forthcoming electrification, which we've seen the cars getting cut and two recent offerings (Ecosport and Ranger) coming in as aging place holders.

Granted, the Ranger is being welcomed with impressive sales...but the big news with Ford has mostly been news, not anything in the metal.

This is an odd position for me, as I'm very much an analog guy that's always interested in the performance models first and foremost; I generally spend little time caring about the run-of-the-mill offerings.  That said, I'm with many other Blue Oval fans that are watching carefully to see if Ecosports and Escapes will truly supplant the Fiesta/Focus/Fusion sales in the market.  Does and Edge make for an attractive Taurus alternative?  Will the showroom suffer from being 70+ percent CUV blobs, with only the occasional Mustang or F-series making and visual difference?

The undeniable importance of the new Explorer and Super Duty aside, we're still just around the corner from...well, we're not quite sure.  We get snippets about dealers being impressed with "Mach E" previews and get glimpses of forthcoming PHEV tech in the imminent models...but we've basically been led to believe that there's a new Ford era dawning in the next 1-2 years, after years of rumor and delays.

Wall Street can go commit a physical/carnal impossibility for all I care...but the brand's fans have plenty of cause to be frustrated.  How much of that rests on Fields vs. Hackett, I'm not certain.

Agreed, but we knew for a while that the remainder of 2017 and 2018 would be lull years, with the big core products coming for 2019 and beyond (Ranger, Explorer, Aviator, Escape, Corsair).  It's not as if a switch could've been flipped and the lineup turned over last year.  Sales will be better this year (outside of sedans), they'll show the Mach E, some other products, and eventually Bronco, and all the commentary will die down.

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4 hours ago, akirby said:

 

It's pretty obvious from the Mark Fields era that Mulally didn't change anyone's thinking.  They just went along with whatever he said until he was gone.

Trust me on this one.   My company is older and larger than Ford and we have the same issues.   You can tell people this is how we want you to think and operate but you can't force them to do it.   And there are a lot of leaders and middle managers who simply don't want to work that way.   They either don't want to change or they're incapable.

We've had an extraordinary amount of turnover at the VP (and higher) levels in the last 18 months.  They are literally showing people the door if they're not embracing change and new ways of thinking.  You have to get people with new ideas who are willing to think outside the box and find creative solutions. 

You train the ones that are trainable but I bet in a company like Ford that's downright impossible for 75% of them.

Maybe Hackett could do a better job with education.  There are courses available that teach this type of thinking and they really help if you're open to the concept.

It seem the higher you go in an organization, the more executives like to answer off the cuff instead of putting the time into analyzing a problem and finding answers. Ive been there when these guys have tried to shut down discussions of change with the MD because this or that only to be found out, they haven't really researched anything. Worse than that, these people tend to shut down suggestions from middle/ lower  management who are actually much closer to problems and solutions.

And yes, I suspect that many of the VPs and senior VPs  worked their way to the top but now protect their positions by not giving Hackett too much information to deal with...exactly what they tried to do with Mulally. At that level, not possible or can't be done will never be accepted, it's the equivalent to telling your senor to F off, I'm not doing that.

many execs forget that you don't just report to superiors, you also have to do the ground work

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Honestly, the next 12 months will be the prove it year. If the Escape and Explorer,  are well done and sell like gangbusters I think Ford will be able to quell this, "They don't know what they are doing" rants come from media and wall street. This will be especially true if the hybrid and plug in hybrid variants (Lincoln) versions are a success.  With the Mach One, Hybrid/Electric F150, and hybrid Mustang on the way after that, I think they have what it takes to bridge the gap to full electrification.

I am actually more worried about the economy, more than the product that Ford is going to be producing. Germany is preparing for the worst for their auto industry. Loans going delinquent in the US are at a 9 year high (even though duration has increased). China sales are dying up. All of this makes me think that the next few years could be rough for everyone. 

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43 minutes ago, akirby said:

They don't have to supplant sales, just profits.

Escape tops out in the mid $30Ks.  Edge near $50K.   Focus and Fusion never came close to that.  Even the Fusion Sport is $10K less than the Edge ST.

Ford will make twice as much profit from half as much volume.

 

Focus TI and ST both topped out just over $31k 

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18 minutes ago, jpd80 said:

It seem the higher you go in an organization, the more executives like to answer off the cuff instead of putting the time into analyzing a problem and finding answers. Ive been there when these guys have tried to shut down discussions of change with the MD because this or that only to be found out, they haven't really researched anything. Worse than that, these people tend to shut down suggestions from middle/ lower  management who are actually much closer to problems and solutions.

And yes, I suspect that many of the VPs and senior VPs  worked their way to the top but now protect their positions by not giving Hackett too much information to deal with...exactly what they tried to do with Mulally. At that level, not possible or can't be done will never be accepted, it's the equivalent to telling your senor to F off, I'm not doing that.

many execs forget that you don't just report to superiors, you also have to do the ground work

And if you don't get rid of those folks they will kill the entire organization or company.

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Prior to the arrival of Mullaly at Ford, most "experts" in the business press viewed GM as the best-run American company. I therefore don't necessarily put much faith in the musings of the business press or even Wall Street.

Ford does need to smooth out its product cadence. We're still in the "feast or famine" mode on that score. Honda, for example, doesn't let products wither on the vine, and regularly offers at least one revamped model every year to keep customers (and the press) interested.

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We really don't know the real story from within the BS castle, probably a bit of both, Hackett not an effective communicator and seasoned executives taking advantage of his lack of knowledge, trying to lead him to their way of thinking. Mulally was too smart for that and set the ground rules early, I think JH may have soft pedalled these guys early and now they are feeling his push back to do better..... 

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1 hour ago, grbeck said:

Ford does need to smooth out its product cadence. We're still in the "feast or famine" mode on that score. Honda, for example, doesn't let products wither on the vine, and regularly offers at least one revamped model every year to keep customers (and the press) interested.

You should listen to last week's "Autoline This Week."  They interview Jim Farley who discusses this very issue.  

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5 hours ago, akirby said:

October 2014 to be exact.

 

Well thanks!

Looking back on the old thread, it's interesting to see just how "all in" they have been with these new products compared to where many here expected them to be. Hell, even though it was my sourcing I still had my doubts. 

I think that history will be kinder to the Hackett era... only after this next product cycle is fully realized will it become clear just how much has been done since the disaster that was Fields' tenure. I think it's important to remember that there is no magic pill, especially with a situation as dire as Ford's a few years ago. There always has to be give somewhere (in finances, in attention, in segments) to counteract a correction else. The old adage that something can be done "quick and cheap," "quick and well," or "cheap and well," but you can't have all 3 rings true here. Ford is still very much in a recovery mode in terms of refocusing and refining their offerings, and they likely will be for at least another 2-3 years. 

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The truly inspirational part is breaking vehicle engineering/electrical down into modules and finding way to make them fit into more vehicles, was this on Ford's radar before Hackett arrived or did he force execs to think this way by changing focus on product priority, changing people's beliefs and perceived limits  of what can be done?

Perhaps certain products (EVs, niche vehicles) stayed out of reach simply because of the way they were developed.....not because they cost too much.

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2 minutes ago, jpd80 said:

The truly inspirational part is breaking vehicle engineering/electrical down into modules and finding way to make them fit into more vehicles, was this on Ford's radar before Hackett arrived or did he force execs to think this way by changing focus on product priority, changing people's beliefs and perceived limits  of what can be done?

Perhaps certain products (EVs, niche vehicles) stayed out of reach simply because of the way they were developed.....not because they cost too much.

There were pushes that way from within engineering back to the Mulally era, but none of it picked up steam until Hackett got hands on a pitch early in his tenure is how I understand it. 

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1 hour ago, PREMiERdrum said:

Well thanks!

Looking back on the old thread, it's interesting to see just how "all in" they have been with these new products compared to where many here expected them to be. Hell, even though it was my sourcing I still had my doubts. 

I think that history will be kinder to the Hackett era... only after this next product cycle is fully realized will it become clear just how much has been done since the disaster that was Fields' tenure. I think it's important to remember that there is no magic pill, especially with a situation as dire as Ford's a few years ago. There always has to be give somewhere (in finances, in attention, in segments) to counteract a correction else. The old adage that something can be done "quick and cheap," "quick and well," or "cheap and well," but you can't have all 3 rings true here. Ford is still very much in a recovery mode in terms of refocusing and refining their offerings, and they likely will be for at least another 2-3 years. 

That's my take, that he's doing some truly revolutionary things but they won't be ready to announce for another year or two.   And they have to sacrifice some things in the interim.

 

The good news is they're not cheaping out on most of the new products - Aviator and Explorer are top notch, Bronco and Maverick and Corsair look to be the same, and Ranger is as good as it needs to be for now.  Escape looks iffy but like you said you gotta cut somewhere.

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There's a lot more to be upbeat about this year with Ranger and more fresh products coming in the second half, people should feel good going into 2020.

Maybe JH can let the products do the talking, Lincoln's Utility line up looks really good, fingers crossed that he has a CD6 Lincoln car not too far away......

 

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11 hours ago, akirby said:

Ford has already made it clear publicly what their plan is for AVs.  They will be commercial vehicles hauling passengers and/or cargo with a cloud based management system.  They've shown examples of pizza deliveries and package deliveries.   

That's it and it's crystal clear.   The problem is wall street doesn't know how to gauge the investment or profit potential.

TheStreet did an interview with Sherif Marakby, CEO of Ford Autonomous Vehicles LLC. https://www.thestreet.com/technology/ceo-of-ford-self-driving-business-talks-autonomous-14830934

Marakby said "Our view is Level 4 service, so not personal ownership. So this is shared mobility, you can hail a ride or you can move something in the vehicle as a business and you would share a vehicle. The vehicle would drive autonomously in a geo-fenced area that's fairly large. Our plan is developing a vehicle, developing a business, developing what cities we're going to be in and what we're going to move.

The personal ownership piece is going to be after that. What's after that, we don't know. It depends on the success of the service and the technology."

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19 hours ago, mackinaw said:

I have one contact left at Ford.  She's the sister of an old high school buddy who I see maybe once/year.  She works in EV's and is very happy with how things are going.  Not surprising I guess, EV's are one of the places you want to be right now if you work in the auto industry.

Can you imagine how the thousands of engineers who work in Powertrain Engineering feel when they keep hearing that internal combustion engines are going away ?

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12 hours ago, jpd80 said:

There's a lot more to be upbeat about this year with Ranger and more fresh products coming in the second half, people should feel good going into 2020.

Maybe JH can let the products do the talking, Lincoln's Utility line up looks really good, fingers crossed that he has a CD6 Lincoln car not too far away......

 

I was at my Lincoln dealership a couple of days ago talking to the owner and he is excited looking at where Lincoln's crossover/SUV lineup will be by the end of the year and even more where it will likely be a year after (unanounced China-built subcompact with the Corsair growing to compact size, Corsair, announced but not shown new all electric performance crossover coupe, Nautilus, Aviator, Navigator).

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