Ford to unveil radical new business plan to improve quality and profitability

[silvrsvt 4,331]

According to Ford, the new Ford+ expansion plan will be revealed and explained at an upcoming fireside chat with auto analyst Rod Lache. The chief executive and team will explain how they plan to reduce costs, improve quality, and highlight other details about the ever-changing auto giant. The meeting is scheduled for February 15th at the Auto Consumer Conference 2023 in New York City.

 

https://www.teslarati.com/ford-quality-profitability-plan-2023/amp/

[rmc523 4,294]

Light on the details, but it'll be interesting to see what's announced.

[rperez817 1,677]

"Radical new business plan" is just what Ford needs nowadays, and Ford+ is a good example of what makes Jim Farley a good businessman.

 

Maybe plans for the wind down and eventual spinoff of Ford Blue division will be announced at the meeting on February 15? 

[twintornados 2,844]

30 minutes ago, rperez817 said:

....Maybe plans for the wind down and eventual spinoff of Ford Blue division will be announced at the meeting on February 15? 

 

Fat chance of that happening...

[Oacjay98 249]

Interesting.

[7Mary3 445]

1 hour ago, twintornados said:

 

Fat chance of that happening...

 

Not yet anyway!  But, I do expect significant cuts to the ICE side of the business.  While certain Ford Blue product lines are without a doubt the major source of revenue, there are others that are likely costing money.  While streamlining the ICE side of the business has been a part of the plan for some time, I think those moves will be accelerated. 

[Footballfan 264]

3 hours ago, rmc523 said:

Light on the details, but it'll be interesting to see what's announced.

Seems like Ford is changing plans almost every month.  It's been that way since the turn of this century at this company 🙄

[fuzzymoomoo 7,386]

2 hours ago, Footballfan said:

Seems like Ford is changing plans almost every month.  It's been that way since the turn of this century at this company 🙄

This doesn’t seem like changing the plan, more like adding to it. The core principles shouldn’t be changing much, if at all. 

[slemke 370]

Automotive news had a blurb about Ford having 25% more engineers than competitors.  It will be interesting to see how Ford+ plays out.  GM had record earnings and Ford lost $2B.

 

Autoweek mentioned inventory is up, so supply shouldn’t be as much of an issue.  The article did indicate that Ford was paying a premium for some parts.

[akirby 16,596]

1 hour ago, slemke said:

GM had record earnings and Ford lost $2B.

Actual operations made $10.4B up from last year.  Not as good as GM but not as bad as it sounds if you include the special items.

[tbone 1,068]

8 hours ago, rperez817 said:

Maybe plans for the wind down and eventual spinoff of Ford Blue division will be announced at the meeting on February 15? 

Yeah, that’s a great idea if you are looking for the fastest way to sink the company. 

[danglin 102]

Not too confident in the future of Ford Motor Company with the continued dropping of vehicle options.  Not convinced, Farley will say anything to boost my confidence either... 

[silvrsvt 4,331]

What I can see happening is a freezing of almost all development of ICE products-your quality will improve if you keep building the same thing. If anything new is introduced, its to simplify the lineup, like the rumored I6 engine. 

 

So basically by the end of the decade, you'd have this:

 

1.0/1.5L I3
2.5L hybrid

2.0/2.3L I4

I6 to replace the Nano and Cyclone based V6s (no need for FWD application for V6s)

5.0L V8-though that might be dead at the end of the decade, due to the Mustang coupe going BEV and the current Ecoboost engines being a good enough V8 replacement in the F-150

6.8/7.3L V8

7.3L Diesel for Super Duty

 

They might be even able to drop some of the I3/I4 engines...but I think the Maverick is supposed to stay into production till 2033 or so? I didn't recall seeing a BEV version of it. 

 

I don't see the Escape getting any more changes after this refresh. The Bronco Sport will hopefully add a hybrid when it gets refreshed in 2025, but I don't see any other changes outside of some styling changes. The Bronco won't get any major changes till 2029, outside of maybe the newer I4 that the Mustang is getting and maybe the 2024 Ranger is getting. The Explorer will get a refresh in a year or two also and be locked in till mid 2030 like the Panther. 

 

Ford isn't going to say anything about FordBlue going away till it needs to go away and that isn't happening till 2030-35 at the earliest IMO. 

 

 

 

[rperez817 1,677]

10 hours ago, slemke said:

Automotive news had a blurb about Ford having 25% more engineers than competitors.

 

That excess engineering headcount is entirely on the Ford Blue side, due to the terminal decline that division is experiencing nowadays. On the other hand, Jim Farley mentioned shortly after he became CEO that Ford Motor Company lacked sufficient talent in areas such as software engineering that are critical for the current Model e and Ford Pro divisions.

 

Fortunately, Ford has made a lot of progress with the latter, especially since it was able to snag Doug Field away from Apple.

[Chrisgb 187]

2 hours ago, silvrsvt said:

Ford isn't going to say anything about FordBlue going away till it needs to go away and that isn't happening till 2030-35 at the earliest IMO. 

 

 

 

Especially in a contract year. I've also wondered if, instead of buying out the surplus engineers, would it not be prudent to offer to school them in "BEV 101?" They already have the math and metallurgical skills and experience. Or is it a case like Toyota's HQ move from California to Texas- move away from the dysfunction, betting that very few will follow on their own,  Like, "Here's some money. Go apply at Bitchin' Rides or something."

[rperez817 1,677]

33 minutes ago, Chrisgb said:

Or is it a case like Toyota's HQ move from California to Texas- move away from the dysfunction, betting that very few will follow on their own

 

The primary reason for TMNA's HQ move from Torrance to Plano was to break up fiefdoms that took root within the organization in the 50 year period since TMNA was founded. Along with the HQ move, some of the business units within TMNA such as PEMC were revamped and relocated as well.

 

The name of the initiative was "One Toyota", and by the time the new Plano HQ campus opened it was largely successful in breaking up those fiefdoms. Some of One Toyota's goals were similar to Alan Mullaly's "One Ford" plan, though Toyota's and Ford's respective corporate cultures were (and still are) radically different overall. 

[rperez817 1,677]

Registration link for Wolfe Global Auto, Auto Tech, and Auto Consumer Conference & fireside chat on 2/15 at 7:55 AM Central.  Wolfe Global Auto, Auto Tech, and Auto Consumer Conference (wsw.com)

[rmc523 4,294]

21 hours ago, rperez817 said:

"Radical new business plan" is just what Ford needs nowadays, and Ford+ is a good example of what makes Jim Farley a good businessman.

 

Maybe plans for the wind down and eventual spinoff of Ford Blue division will be announced at the meeting on February 15? 

 

 

Yeah, ok....

let's spin off the part of the business that makes 96.4% of the sales......

 

 

 

19 hours ago, Footballfan said:

Seems like Ford is changing plans almost every month.  It's been that way since the turn of this century at this company 🙄

 

This one seems like a public "fleshing out" of the plan that they're already implementing.

[rperez817 1,677]

1 hour ago, rmc523 said:

Yeah, ok....

let's spin off the part of the business that makes 96.4% of the sales......

 

 

 

100% of the net sales growth in the chart you posted comes from Model e division. Along with Ford Pro, that's where the future of Ford Motor Company lies. Strengthening those 2 divisions and formulating an appropriate exit strategy for Ford Blue will be critical over the next few years.

 

Guess we'll find out next Wednesday what details Jim Farley and John Lawler reveal about those items during the fireside chat.

[tbone 1,068]

2 hours ago, rmc523 said:

 

 

Yeah, ok....

let's spin off the part of the business that makes 96.4% of the sales......

 

 

 

 

This one seems like a public "fleshing out" of the plan that they're already implementing.

 Didn’t you hear, it’s in terminal decline. 

[fuzzymoomoo 7,386]

55 minutes ago, tbone said:

 Didn’t you hear, it’s in terminal decline. 

Well shoot, I guess I should update my resume then….

[rmc523 4,294]

1 hour ago, rperez817 said:

 

100% of the net sales growth in the chart you posted comes from Model e division. Along with Ford Pro, that's where the future of Ford Motor Company lies. Strengthening those 2 divisions and formulating an appropriate exit strategy for Ford Blue will be critical over the next few years.

 

Guess we'll find out next Wednesday what details Jim Farley and John Lawler reveal about those items during the fireside chat.

 

More importantly, you're proposing spinning off the division that makes 96.4% of the profit that would pay for the EVs....

[silvrsvt 4,331]

5 hours ago, rmc523 said:

 

More importantly, you're proposing spinning off the division that makes 96.4% of the profit that would pay for the EVs....

 

Any talk of spinning off FordBlue at this point is down right stupid and dangerous. 

 

Talking of how they'll start pivoting away from it (reducing investments in ICE platforms) is smarter...because it gives you wiggle room to adjust if things go sideways between now and 2030 or so. 

[Trader 10 267]

5 hours ago, rmc523 said:

 

More importantly, you're proposing spinning off the division that makes 96.4% of the profit that would pay for the EVs....

I think it’s actually 100% of the profit as Ford has stated that It’s BEVs aren’t profitable. 

[Trader 10 267]

13 hours ago, silvrsvt said:

What I can see happening is a freezing of almost all development of ICE products-your quality will improve if you keep building the same thing. If anything new is introduced, its to simplify the lineup, like the rumored I6 engine. 

 

So basically by the end of the decade, you'd have this:

 

1.0/1.5L I3
2.5L hybrid

2.0/2.3L I4

I6 to replace the Nano and Cyclone based V6s (no need for FWD application for V6s)

5.0L V8-though that might be dead at the end of the decade, due to the Mustang coupe going BEV and the current Ecoboost engines being a good enough V8 replacement in the F-150

6.8/7.3L V8

7.3L Diesel for Super Duty

 

They might be even able to drop some of the I3/I4 engines...but I think the Maverick is supposed to stay into production till 2033 or so? I didn't recall seeing a BEV version of it. 

 

I don't see the Escape getting any more changes after this refresh. The Bronco Sport will hopefully add a hybrid when it gets refreshed in 2025, but I don't see any other changes outside of some styling changes. The Bronco won't get any major changes till 2029, outside of maybe the newer I4 that the Mustang is getting and maybe the 2024 Ranger is getting. The Explorer will get a refresh in a year or two also and be locked in till mid 2030 like the Panther. 

 

Ford isn't going to say anything about FordBlue going away till it needs to go away and that isn't happening till 2030-35 at the earliest IMO. 

 

 

 

Thanks for posting your thoughts on future engines and models. The I-6 is intriguing. I’m a bit surprised Ford didn’t drop the 5.0 now that the 6.8 is ready as it has to be cheaper to build and should be able to make big horsepower numbers and better torque than the 5.0.