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Ford CEO Mulally Speaks With Fortune


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Mullaly: "But what we didn't have was a business plan."

 

Yeah, No SH*T Sherlock. The whole business planning process that was the backbone of how Ford was professionally managed for over 40 years was dumped with the Ford 2000 reorganization. Trotman took his eye off the ball by allowing the level of autonomy to the VCs the VCs took. No coordination between VCs, expolding complexity (just as Mullaly is finding out), and a proliferation of NON-professional business managers (meaning competant engineers who were promoted into planning positions but who didn't have a clue what it took to build a business plan). For years people were asking internally what the "strategy" was - no one knew.

 

Unfortunately for Ford, the past ten years or so has meant a significant aging of the Ford customer base. Young people are just not interested in Ford anymore. It has become the old persons brand (Yes there are exceptions). And that is why Ford will continue to lose market share for years to come even with competitive products. Battling this share erosion PLUS the inherent inefficiencies of Ford PLUS the legacy cost problems PLUS the walk away from gas guzzlers and heavy vehicles (Ford's vehicles are the heavist in the marketplace and generally the least fuel efficient) means that even proventing a collapse of the company will require alot of work.

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