Mullay: Ford needs to become one global company

[Blue Oval Staff]

"The best in the world is Toyota," Mulally said. "I'm a disciple of the Toyota Production System. The Toyota Production System is the finest production system in the world they're a magical machine it's the machine that changed the world."

 

READ MORE HERE.

[robertlane]

Buh-bye Mercury.

That's how I read it too. Especially this quote:

That may require consolidating brands. It certainly means consolidating product lines, platforms and operations.

 

I think he wants global brands and Mercury doesn't fit that description. The question is: Will the Ford family allow Mercury to be killed off since it was Edsel's baby? :heartbreaker:

Edited November 11, 2006 by robertlane

[kyle]

That's how I read it too. Especially this quote:

I think he wants global brands and Mercury doesn't fit that description. The question is: Will the Ford family allow Mercury to be killed off since it was Edsel's baby? :heartbreaker:

 

hell if they killed the edsel they will certainly get rid of mercury!!

[RichardJensen]

Kill Mercury? Why not kill Lincoln as well? It too is not a global brand and a Lincoln dealership without a Mercury franchise is going to go under anyway.

 

Why not spend a few billion dollars axing brands? They're not going to miss that money when they consolidate global vehicle architectures stateside.

[Hugh]

Here in Canada, the dealerships were: Ford alone, Lincoln/Mercury, Volvo and Mazda alone.

 

Now it's: Ford/Lincoln (Mercury Villagers and Grand Marquis), Volvo/Mazda (in some places) and Jaguar/Land Rover.

 

I don't know how it works down there but here, what I gathered was 1: Yes Mercury dealerships were choked (wouldn't you if you got the sack?). And 2: There is a loyal Mercury fanbase here and would like to see the return of Mercury.

 

In the end I'm sorry, I can't see the justification for Mercury.

 

Put the cash into Ford (Use some of the Mercury interior touchs. Very classy BTW.) and Lincoln.

 

Just my humble opinion.

[mackinaw]

Kill Mercury? Why not kill Lincoln as well? It too is not a global brand and a Lincoln dealership without a Mercury franchise is going to go under anyway.

 

A few weeks back on "Autoline Detroit" one of the guests suggested that Ford (as a company) become a totally global and sell only brands that have a world-wide presence. He suggested that Ford Motor Company axe Mercury and Lincoln and sell only Ford, Jaguar and Volvo (again, think world-wide and not just the U.S. market). I first thought the guy was daft, but the more I think about what he said, the more I think he might be on to something.

 

With Mullay as CEO and looking at everything wih a fresh, non-Detroit pair of eyes, I got to believe that anything is possible.

[Hellcat_F6F]

"Mulally said the transformation that is necessary at Ford will require support and sacrifices at all levels of the company. He said the 2007 negotiations with the United Auto Workers will be "a defining moment" in the history of the industry. He said will take his message directly to workers if necessary, but will not be stopped from making the changes necessary to save the company."

 

 

Gee, so far it looks like the workers are taking the brunt of it...Mr. Mullaly, I'm just a dumb line worker, so please enlighten me...where is the FORWARD in the so-called "Way Forward" plan? So far it's just been cut, cut, cut..you've just announced a shift loss at my plant. Are customers supposed to hit the dealers in droves because of that? Again, I'm just a line grunt, but I can't help but wonder where the PRODUCTS are...the ones that will bring the customers in. I doubt John Q. Customer cares that you've closed this plant, or cut that shift..they only care about the PRODUCT that got them to the dealer. PRODUCT will save the company..not cuts, closures, and layoffs.

Edited November 11, 2006 by Hellcat_F6F

[IPITYDAFOOL VIRUSFREE]

Buh-bye Mercury.

Hello Forrcury. The new Ford that has that Mercury class. Bring Ford up to Mercury levels as far as interior and perception. Lincoln must decide if its luxury or just a really nice Ford.

[bec5150]

Ok, so everyone here has told me that rather than go to my crappy Ford dealer for service, that LM dealership sare much better. There are even customer service surveys that suggest LM dealers are better than most and certainly better than most Ford dealers.

 

So....

 

If FMC gets rid of Lincoln and Mercury AND one of the good dealers, doomed to close, is next to a shitty Ford dealer, give him the Ford line and kill the shitty Ford dealer.

 

Good idea?

[Footballfan]

"Mulally said the transformation that is necessary at Ford will require support and sacrifices at all levels of the company. He said the 2007 negotiations with the United Auto Workers will be "a defining moment" in the history of the industry. He said will take his message directly to workers if necessary, but will not be stopped from making the changes necessary to save the company."

Gee, so far it looks like the workers are taking the brunt of it...Mr. Mullaly, I'm just a dumb line worker, so please enlighten me...where is the FORWARD in the so-called "Way Forward" plan? So far it's just been cut, cut, cut..you've just announced a shift loss at my plant. Are customers supposed to hit the dealers in droves because of that? Again, I'm just a line grunt, but I can't help but wonder where the PRODUCTS are...the ones that will bring the customers in. I doubt John Q. Customer cares that you've closed this plant, or cut that shift..they only care about the PRODUCT that got them to the dealer. PRODUCT will save the company..not cuts, closures, and layoffs.

 

I'm with you. At the end of the day it's product, product, product, and so far Ford- and even Mulally have not given me any indication of what they are going to put in their showroom. An no, a new grille and motor on the Five-Hundred/Freestar is not my idea of new product. Ford's product lineup- with the exception of the Fusion, Mustang, and F-series has to be gutted. I am not necessarily in fabor of dropping Lincoln or Mercury provided they can come up with some UNIQUE designs- not just fancy grilles on Ford cars.

 

Regarding Bryce Hoffman, you have to take what he writes with a grain of salt. He appears to have been adding speculative statements to what Mually was saying. I would rate Hoffman "below average" in a city that is full of mediocre automotive journalists; a journalist that is more interested in making news than reporting it.

[Hugh]

If FMC gets rid of Lincoln and Mercury AND one of the good dealers, doomed to close, is next to a shitty Ford dealer, give him the Ford line and kill the shitty Ford dealer.

 

Good idea?

I agree.

[Hugh]

I was only refering to the bad dealerships. If the extra good ones want to become PAG, all the power to them.

 

It seems silly to me right now: "Right, all you bad dealerships will not be shut down. Congrats, you're now a PAG shop."

 

Just Kidding.

[Hugh]

I can't remember who said it here, but it was a good idea. Take the dealers that get a lot of complaints, and just stop selling them cars. Pretty soon, they will either be out of business, or willing to change their ways.

I think it was bec who started that.

[bec5150]

I can't remember who said it here, but it was a good idea. Take the dealers that get a lot of complaints, and just stop selling them cars. Pretty soon, they will either be out of business, or willing to change their ways.

I have 4 Ford dealers within 20 minutes of my house. They can close three of them and it would HELP Ford greatly.

[Hugh]

Kill Mercury? Why not kill Lincoln as well? It too is not a global brand and a Lincoln dealership without a Mercury franchise is going to go under anyway.

 

Why not spend a few billion dollars axing brands? They're not going to miss that money when they consolidate global vehicle architectures stateside.

I suggested earlier to get rid of Mercury and put the cake into improving "Forcury" and make Lincoln go global a la Cadillac. If that doesn't happen then yeah I agree with you RJ on this one.

Edited November 11, 2006 by Hugh

[ANTAUS]

An area that can support a Walmart? How can that be...it's already targeted as being the bottom of the barrel of retail stores?!

[RichardJensen]

I suggested earlier to get rid of Mercury and put the cake into improving "Forcury" and make Lincoln go global a la Cadillac. If that doesn't happen then yeah I agree with you RJ on this one.

Yeah. 'Cuz Ford NEEDS another global luxury brand, right?

 

I haven't seen any idea about killing Mercury and Lincoln (and that's what you'd be doing) that even begins to justify the investment required to KILL the brand.

 

We are talking B-I-L-L-I-O-N-S of dollars to completely shutter two divisions (and don't kid yourself. That is exactly what you're doing), and then to suggest that having only 'Global' brands will somehow make Ford more efficient. Like how? Because all those swarming French immigrants will be able to buy a Ford in Keokuk Iowa just like they could in Lyons?

 

Hogwash.

 

You can't have global products, you can't have global marketing, you can't have global ANYTHING that the consumer sees.

 

You make cars FOR THIS COUNTRY that people IN THIS COUNTRY want to buy.

 

You use GLOBAL architectures, you use GLOBAL engineering resources, you use GLOBAL manufacturing capability, you don't spend billions trying to engineer cars for Koln Germany, Buenos Aires, and Akaska, South Dakota. IT DOESN'T WORK. Toyota's Camry is designed primarily for the U.S., ditto the Avalon, Sienna, Sequoia, Tundra, and Tacoma. Honda's U.S. Accord is its own beast, it is not the same as the EU Accord.

 

Killing a brand in the U.S. with a decidedly different (AND WEALTHIER) demographic, simply for the sake of making some pretty picture on an org-chart in Dearborn is as stupid as designing products based on other pretty org-charts in Dearborn.

 

---

 

No, I'm sorry, you're right. Killing Mercury is the right idea. Let's spend billions of dollars to get rid of a brand that it costs us next to nothing to keep. Because, see, it's not "global", and you know, being "global" is all the rage these days. People like to think, "Hey, right now, someone in Singapore is ALSO driving a Milan", and well, I'm sorry, they just can't do that so. Bye-bye Mercury.

 

---

 

Killing Mercury (and Lincoln) would prove management to be out of touch with the real world, and it would be, in its way, as indicative of disconnect as the belief that SUVs were the next sedans.

[pcsario]

Richard, killing Mercury would cost close to nothing. I'm getting the impression you're comparing that to GM killing Oldsmobile. You bring up some valid points (killing a dealer network costs a fortune), but you can drive Lincoln's volume up to "replace" Mercury with the right products.

 

I know you're going to say Ford needs the volume Mercury brings in, but with flexible manufacturing, I would use the extra capacity to build other derivatives, like coupes for both Fusion and Zephyr, or even a convertible.

 

And lets face it, I doubt any Lincoln dealer would hate the idea of being offered the chance of selling PAG and Mazda vehicles.

 

Anyway, seems your worst nightmare is about to come true: the "bububu good enough" philosophy is going away, and the next Fusion and Mondeo might be basically the same car. A step in the right direction.

Edited November 11, 2006 by pcsario

[NLPRacing]

Theoretically speaking, Ford could kill Mercury much easier and cheaper than it was for GM to kill Oldsmobile. Mercury's are now sold primarily at L/M dealers and at some rural Ford dealers. After a brief search, I could not find a single stand-alone dealer for Mercury. You could easily phase out Mercury by allowing Lincoln to go down market and letting Ford go upmarket. The only vehicles Mercury have that Lincoln doesn't is the Mountaineer, Mariner and the soon-to-be-discontinued Monterrey. All they have to do is design the next gen Explorer & Escape to be Lincoln's. They could easily phase Mercury out within the next 3 to 5 years without anybody noticing. And if losing Mercury is that big of a deal to the bigger L/M dealers, let them have a Volvo and/or Mazda franchise to pick up the slack. Is there really such a thing as a "loyal" Mercury customer?

[sparks will fly]

Killing Mercury (and Lincoln) would prove management to be out of touch with the real world, and it would be, in its way, as indicative of disconnect as the belief that SUVs were the next sedans.

 

When was the last time they were in touch?

In days gone by Mercury and Lincoln had a more personal look than the rebadged Fords we have today. An upgraded interior and a different grill are not enough sorry to say. Personally I think they should drop Mercury and add both Volvo and Jag with the Lincoln at one dealership. This way the bluehair generation and the younger generations can be seen in the same upscale dealership.

[jpd80]

We have a beautiful RWD Orion Falcon Platform coming in 2008 and it would be a shame if basket case Ford North America passed up the golden opportunity to pick the platform engineering which is already done by Ford Australia. The Orion Falcon is expected to have similar wheelbase and width to the Crown Victoria and LHD engineering. The new cabin will be roomier than the present Crown Victoria. People get hung up on the style of the Falcon but in reality any skin can be put on the engineering. That means it can follow the other NA styling cues and have local engines fitted, the engineering for 5.4 3V and 4V is already done. The Falcon also has parrallel engineered 4WD SUV Territiory and commercial BOF pick-up utility vehicles.

 

If Mulally is serious about restructuring Ford's empire,the engineering for these vehicles is an advantage and should be used to its fullest. I'm not suggesting importing Falcons from Australia, just the engineering platform. This would give a much shorter lead time to introduction for vehicles developed for North America.

Edited November 11, 2006 by jpd80

[630land]

Say byebye to Panther, Mafiosos

 

The one point made was the 'fiefdoms'. The US people had 'not invented here' and insisted on cheap parts, so we got Focus recalls, and no c1. Also, there's the 'it's got o be a real <insert country where branch> car". So there are Aussie Fords, English, German, Chinese, and 'Am-urricun'.

 

That is why the Taurus lingered, since it was 'the last American car', and some didn't want it to ever end. Even if it lost $$$

 

How about the best Ford design that can be flexible for different countries? Like umm, that growing company Toyota does?

 

ANd one more thing..

 

OK, Mercury is not worth keeping anymore. But, Lincoln is! It would be a huge embarrasment, since Continentals and Town Cars are so well known.

 

But most buyers wouldn't care about Mercury going, execpt Grand Marq buyers who are literally dying off. Cougar? No room for it anymore.

 

"But Mercury should sell Euro Fords". Umm, Ford is going more global with platforms, see article. So, there won't be any more "Euro only" Fords.

 

"Mercury is a step up, should have that" Welcome to 1965. The car market isn't 90% Big 3 anymore, no need for a "Buick fighter"{it's a sub brand now, who knows it may go with Olds}. Also, again, the Grand Marq purists are literally....

Edited November 11, 2006 by 630land

[jpd80]

There's lots of engineering going on all around the planet at the moment. If we cut down the duplication and work together then perhaps our costs come down, our cars get easier to build, more economical and cheaper to maintain. I'm sure we will have a unified RWD platform in the near future, and that's a good thing.

[RichardJensen]

Richard, killing Mercury would cost close to nothing. I'm getting the impression you're comparing that to GM killing Oldsmobile. You bring up some valid points (killing a dealer network costs a fortune), but you can drive Lincoln's volume up to "replace" Mercury with the right products.

 

I know you're going to say Ford needs the volume Mercury brings in, but with flexible manufacturing, I would use the extra capacity to build other derivatives, like coupes for both Fusion and Zephyr, or even a convertible.

 

And lets face it, I doubt any Lincoln dealer would hate the idea of being offered the chance of selling PAG and Mazda vehicles.

 

Anyway, seems your worst nightmare is about to come true: the "bububu good enough" philosophy is going away, and the next Fusion and Mondeo might be basically the same car. A step in the right direction.

1) Drive up Lincoln volume, as in sell a $19k Lincoln 'Milan'? Mercury sells about half again the volume of Lincoln, Ford is going to more than DOUBLE Lincoln volume? Right.

 

2) Lincoln dealers, once they saw the bill for setting up their dealership to sell Land Rover, Jaguar, or Volvo WOULD hate the idea of selling vehicles that would in NO WAY make up for lost Mercury volume.

 

3) I owned a Contour, I have no problems with Ford NA using global architectures, but I do have a problem with people that insist a car designed in Europe to be sold in Europe would be a better fit in this marketplace than a vehicle designed here to be sold here. Why do I think that? Because I owned that Contour.

[waymondospiff]

1) Drive up Lincoln volume, as in sell a $19k Lincoln 'Milan'? Mercury sells about half again the volume of Lincoln, Ford is going to more than DOUBLE Lincoln volume? Right.

 

2) Lincoln dealers, once they saw the bill for setting up their dealership to sell Land Rover, Jaguar, or Volvo WOULD hate the idea of selling vehicles that would in NO WAY make up for lost Mercury volume.

 

If there is anyone on this board that I expected to understand volume vs. profit I thought it would be you RJ. I'm guessing that dealers make more money selling a $40,000 Volvo S80 than selling a $20,000 Milan. You don't need to replace volume, you need to replace (or increase) profit. Volvo would do that vs. Mercury.

 

Ford is trying to close dealerships, right? Why not kill off Mercury, revise Lincoln's lineup (cheaper derivatives of Town Car & MKZ/MKX) to bolster Lincoln-brand sales, and partner Lincoln with Volvo, Mazda, Jaguar, LR, AM, Ford...someone - anyone! Close the dealerships that either choose not to restructure or that are redundant in the market.

 

I said this before and never got your opinion on it: Mercury is more Plymouth than Oldsmobile. There is no reason to believe that it would cost Ford billions to shutter the brand. Invest Mercury's PD & Mkt budgets back into Ford & Lincoln. The result? Better cars.

 

I'm glad Mulally's there, that's for sure.

 

Scott