Six Moves To Save Ford

[Blue Oval Staff]

Article link via Fortune

[RichardJensen]

FROM THE EXACT SAME ARTICLE

 

Early in Bill Ford's tenure as CEO, one of his top executives ordered his subordinates not to discuss business issues with another executive who was then reviewing the company's operations. The tension between the two men crackled, and when the first one retired, the second one noted, "No tears were shed when he walked out the door."

 

But Schulz's overseas operations in Europe, Asia, and South America have thrived - and that's where Ford's growth lies. Putting them in competition will ensure Mulally gets the loyalty of both.

 

And then there's this:

 

GM is deep in talks with Carlos Ghosn's Renault and Nissan about forming a three-way alliance, but Ford would gain much more than GM from a linkup. Mulally will soon know what they're proposing. When he does, he should phone Ghosn and make a better offer.

 

WHAT PLANET IS TAYLOR ON?

 

David Kiley has been one-upped!!!

Edited November 2, 2006 by RichardJensen

[NickF1011]

I pretty much agree with all but the last point. Didn't the whole GM-Renault/Nissan alliance thing already fall apart last month? I don't think Ford needs to go seeking a partner to right the ship. They need to fix their own messes internally before they have any hope of gaining anything from a partnership with another large automaker.

[Watchdevil]

Somewhere Ford got the idea that the average median household could afford expensive SUV's and luxury cars so they dumped all their money aquiring Volvo, Jaguar, Aston Martin. Ford completely abandoned the affordable economy and family sedan market making no changes or putting out uninteresting obsolete uncompetitive product while the Japs and Koreans took over sales leadership in those market segments. Ford pretty much said we will only sell you an SUV, Volvo or Jaguar. So people bought elsewhere.

[waymondospiff]

This is Taylor's third article in three days which has me whincing.

 

http://money.cnn.com/2006/11/01/magazines/...rtune/index.htm

Where he rails against American car buyers as essentially stupid.

 

http://money.cnn.com/magazines/fortune/for...sion=2006110209

Where he rails against Mulally as a dolt who doesn't know what he's doing.

 

And now six things that Ford can do to save themselves. A couple of which aren't half bad, but hopelessly simplistic and show the author's lack of understanding of the complex issues regarding the Ford business.

 

But what else would we expect from a NY-centric financial writer? Objective, understanding, insightful reporting? Or the regurgitation of oft-spouted, ill-informed jibberish? I know what I've come to expect.

 

Scott

 

Editted for spelling

Edited November 2, 2006 by waymondospiff

[atomcat68]

I did not read the article or posts in this thread but i'm going to guess what the article said.

1. dump Lincoln

2. dump Mercury

3. Sell Jaguar

4. merge Mazda and Volvo

5. close more plants

6. make smaller cars.

reclassify Mercury as a dwarf planet... oh wait, that was Pluto

I'm getting sick of reading these things anyway.

Edited November 3, 2006 by atomcat68

[NickF1011]

I did not read the article or posts in this thread but i'm going to guess what the article said.

1. dump Lincoln

2. dump Mercury

3. Sell Jaguar

4. merge Mazda and Volvo

5. close more plants

6. make smaller cars.

reclassify Mercury as a dwarf planet... oh wait, that was Pluto

I'm getting sick of reading these things anyway.

 

If you want a good chuckle about how useless this article was, go read it and compare it to what's on your list. At least you mentioned tangible things, as silly as some of them are.

[danglin]

Somewhere Ford got the idea that the average median household could afford expensive SUV's and luxury cars so they dumped all their money aquiring Volvo, Jaguar, Aston Martin. Ford completely abandoned the affordable economy and family sedan market making no changes or putting out uninteresting obsolete uncompetitive product while the Japs and Koreans took over sales leadership in those market segments. Ford pretty much said we will only sell you an SUV, Volvo or Jaguar. So people bought elsewhere.

 

I agree!!! They should have been investing in their own vehicles instead of wasting investment dollars in these low volume companies. I suppose they have made several of these ventures profitable, but at what cost to N. American profits? Now N. American auto operations are fighting for profitability while, these smaller, but profitable divisions cannot keep the whole company above water. What a waste of investment dollars!!!!

 

I belive they are righting the ship, but I still think they should go ahead and sell off all of these other divisions and invest in what really will keep the company moving into a profitable future.

[RichardJensen]

They should have been investing in their own vehicles instead of wasting investment dollars in these low volume companies.

The frustrating thing is it was NOT an either/or thing.

 

Ford could've done this AND kept NA cars competitive. They chose not to, and that's the disgrace.