mlhm5 Posted March 21, 2008 Share Posted March 21, 2008 (edited) "Speaking at separate events in New York on Wednesday, Ford CEO Alan Mulally, Chrysler Chairman and CEO Bob Nardelli said their restructuring plans have cut factory capacity and other costs so they can make it through a deeper slowdown." Link "I don't see anything that's going to turn this around," said Bob Schnorbus, chief economist at J.D. Power. He says the company has three sales predictions, including one for an all-out recession that would drop sales to 14.5 million. "We all hope we're wrong, but it's not looking pretty." Link "The industry's biggest bear is J.D. Power and Associates, which on Wednesday lowered its forecast to 14.95 million vehicles, down from 15.7 million in December, on signs of declining consumer confidence and spending, as well as turbulence in financial and economic markets. "Unfortunately the current environment is fraught with uncertainty and risk, worsening oil prices and weak housing and stock markets," said economist Bob Schnorbus." Link "Broadway Ford, for 50 years an anchor on Oakland's Auto Row, will close its doors at the end of the month as part of the Ford Motor Co.'s plans to consolidate dealerships and cut costs at a time of slumping sales and shrinking revenues. The Oakland dealership will be consolidated with Albany Ford. Hayward Ford, which closed last month, will merge with the San Leandro Ford dealership. For Marion Maita, principal owner of Broadway Ford, and her sons, Greg and Scott Tachiera, it's the end of a family tradition that stretches back to the mid-1940s." Link "We are faced with the dilemma of lowering our credit standards to put them in a car, or saying no,” said Michael J. Jackson, chairman of AutoNation, the largest auto retailer in the United States. “And we’re telling them no.” Link All this is happening at the same time the US is experiencing the worst US credit and insolvency crisis since the Great Depression. So I think Mulally is living in an alternate reality with respect to total vehicles that will be sold in the USA this year. Edited March 21, 2008 by mlhm5 Quote Link to comment Share on other sites More sharing options...
OAC_Sparky Posted March 21, 2008 Share Posted March 21, 2008 Gee, with your insight, and marketing prowess, I cannot see why you're not a CEO running a business instead of "gracing" us with your armchair quarterbacking. Oh, wait. Yes I can. :rolleyes: Quote Link to comment Share on other sites More sharing options...
mlhm5 Posted March 21, 2008 Author Share Posted March 21, 2008 (edited) Gee, with your insight, and marketing prowess, I cannot see why you're not a CEO running a business instead of "gracing" us with your armchair quarterbacking. Oh, wait. Yes I can. :rolleyes: Oh, and like Mulally is doing a good job? Anyone can cut a company to the bone, but increasing the top line is an art. Edited March 21, 2008 by mlhm5 Quote Link to comment Share on other sites More sharing options...
P71_CrownVic Posted March 21, 2008 Share Posted March 21, 2008 Oh, and like Mulally is doing a good job? Anyone can cut a company to the bone... And try to fool consumers by changing the names of cars... Quote Link to comment Share on other sites More sharing options...
Critic Posted March 21, 2008 Share Posted March 21, 2008 And try to fool consumers by changing the names of cars... DAMN, hard to refute that one. But P, what he did do was bring back the name to use the value inherent in it. And he is redoing the car, to regain the sales that everyone knows is in the name. I think you just want to throw the punch and run like a chicken$***. You know, someday people wait in alleyways to catch up with those types. Quote Link to comment Share on other sites More sharing options...
P71_CrownVic Posted March 21, 2008 Share Posted March 21, 2008 And he is redoing the car, to regain the sales that everyone knows is in the name. Well...maybe third times the charm with Ford and their big D3 sedan. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 21, 2008 Share Posted March 21, 2008 increasing the top line is an art. North America: For 2007, Ford’s North America Automotive operations reported a pre-tax loss of $3.5 billion, compared to a loss of $6.0 billion a year ago. The improvement primarily reflected higher net pricing, favorable mix, and lower costs, partially offset by a number of factors including lower volumes and unfavorable changes in currency exchange rates. For the year, revenue was $70.5 billion, up from $69.4 billion a year ago. Worldwide Automotive revenue for 2007 was $155.8 billion, compared with $143.3 billion a year ago. Total fourth-quarter Automotive revenue was $40.8 billion, up from $36.0 billion a year ago. http://media.ford.com/article_display.cfm?article_id=27534 Top line is revenue, right? DOWN GOES BRADY!!!!!!!!!! Quote Link to comment Share on other sites More sharing options...
FoMoCobra Posted March 21, 2008 Share Posted March 21, 2008 Well, a lot worse can happen than the industry selling 15 mil cars this year. I think a full blown financial colapse was narrowly averted recently and I think that would have been even worse news for the auto industry... The crisis isn't completely over but a colapse is not so much a fear anymore. Just a little positive insight :reading: Quote Link to comment Share on other sites More sharing options...
Sixt9coug Posted March 21, 2008 Share Posted March 21, 2008 Funny how none of the articles was Ford specific and that they all affect the industry as a WHOLE. File this under "No shit, Sherlock" Wasn't the almightly Toyota even getting hit this year already? For the record I woke up today and the sky was blue. Quote Link to comment Share on other sites More sharing options...
8A4RE Posted March 21, 2008 Share Posted March 21, 2008 "Speaking at separate events in New York on Wednesday, Ford CEO Alan Mulally, Chrysler Chairman and CEO Bob Nardelli said their restructuring plans have cut factory capacity and other costs so they can make it through a deeper slowdown."Link "I don't see anything that's going to turn this around," said Bob Schnorbus, chief economist at J.D. Power. He says the company has three sales predictions, including one for an all-out recession that would drop sales to 14.5 million. "We all hope we're wrong, but it's not looking pretty." Link "The industry's biggest bear is J.D. Power and Associates, which on Wednesday lowered its forecast to 14.95 million vehicles, down from 15.7 million in December, on signs of declining consumer confidence and spending, as well as turbulence in financial and economic markets. "Unfortunately the current environment is fraught with uncertainty and risk, worsening oil prices and weak housing and stock markets," said economist Bob Schnorbus." Link "Broadway Ford, for 50 years an anchor on Oakland's Auto Row, will close its doors at the end of the month as part of the Ford Motor Co.'s plans to consolidate dealerships and cut costs at a time of slumping sales and shrinking revenues. The Oakland dealership will be consolidated with Albany Ford. Hayward Ford, which closed last month, will merge with the San Leandro Ford dealership. For Marion Maita, principal owner of Broadway Ford, and her sons, Greg and Scott Tachiera, it's the end of a family tradition that stretches back to the mid-1940s." Link "We are faced with the dilemma of lowering our credit standards to put them in a car, or saying no,” said Michael J. Jackson, chairman of AutoNation, the largest auto retailer in the United States. “And we’re telling them no.” Link All this is happening at the same time the US is experiencing the worst US credit and insolvency crisis since the Great Depression. So I think Mulally is living in an alternate reality with respect to total vehicles that will be sold in the USA this year. Thanks Mr. Obvious, you're always a ray of sunshine. Quote Link to comment Share on other sites More sharing options...
OAC_Sparky Posted March 21, 2008 Share Posted March 21, 2008 Oh, and like Mulally is doing a good job? Anyone can cut a company to the bone, but increasing the top line is an art. A company cannot run paying way more people than it needs. As sad as that is, as much as I would hate seeing people losing jobs, you have to admit that. And while I don't agree with the exhorbitant salaries senior management get, apart from that I can't say that some of the moves he's made are all bad. He's shedding Jaguar and LR that are two albatrosses left over from Nasser's era. He's stopped dumping money on non-viable concept cars. And is concentrating on vehicles that should sell. He's not responsible for the lack of Taurus sales; that vehicle was in development long before he got here -- if you want to flaw him for reviving the nameplate of one of the world's most successful cars, I think he can live with that. He's working on getting vehicles to market faster. Sometimes, in your own finance, you have to come to the realization that you are living beyond your means and that you have to make the cuts you need to do to make your budget viable. That means hamburger instead of prime rib. Nobody likes it, but it keeps your stomach full so you can live. Did you think that Mulally was going to step into the job and suddenly people would start buying Fords because he's the CEO? Quote Link to comment Share on other sites More sharing options...
Edstock Posted March 21, 2008 Share Posted March 21, 2008 Anyone can cut a company to the bone, but increasing the top line is an art. The practice of which is unfolding in front of your eyes. But, as you're myopic and/or ill-educated in business practice, you obviously don't understand. One billion dollars saved in reduced warranty costs is an example of increasing the top line artfully. Acquiring a new plant in Romania for the EU Ka should increase the top line too. So Ford re-named the 500, and some point at this as a marketing failure. They're right, but so what? That's so two years ago. What's important is that management felt a mistake had been made, and decided to make a correction, and — this is important — move on with marketing plans for the future. But if you have the scab-picking mentality that you and P71 have, this fixation becomes ridiculous, because you're fixated on the past. The rest of us think about Ford in the future. You're in 2005-2006, we're in 2008 looking at 2009/10. You'll love the next Taurus and all the new stuff that's coming up. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 21, 2008 Share Posted March 21, 2008 For the record I woke up today and the sky was blue. But didn't it seem a little closer..... Almost as if it were falling? Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted March 21, 2008 Share Posted March 21, 2008 (edited) But didn't it seem a little closer..... Almost as if it were falling? Well, there's some kind of white stuff falling here today...and the sky is all gray....maybe its the beginning....... Edited March 21, 2008 by suv_guy_19 Quote Link to comment Share on other sites More sharing options...
mlhm5 Posted March 21, 2008 Author Share Posted March 21, 2008 http://media.ford.com/article_display.cfm?article_id=27534 Top line is revenue, right? DOWN GOES BRADY!!!!!!!!!! Increasing revenue is easy if you don't care about income. Increasing the top line above the growth of the total market while remaining levered at the income line is the job. For example, a 4% increase in sales should convert to a much larger % increase in the income line. The Ford way is you shrink the company by layoffs, plant closings, etc., therefore reducing your expenses and hope the top line will remain the same producing more leverage at the income line. Result is the company is no larger, but more profitable for one year. That trick is not repeatable two years in a row. The caveat is that growth costs money and Ford doesn't do growth unless the total market is growing. The proper way is to sell a product the customer wants to buy more than the competitor's brand, however that is totally foreign to Ford. T Quote Link to comment Share on other sites More sharing options...
Bored of Pisteon Posted March 21, 2008 Share Posted March 21, 2008 The practice of which is unfolding in front of your eyes. But, as you're myopic and/or ill-educated in business practice, you obviously don't understand. One billion dollars saved in reduced warranty costs is an example of increasing the top line artfully. Acquiring a new plant in Romania for the EU Ka should increase the top line too. So Ford re-named the 500, and some point at this as a marketing failure. They're right, but so what? That's so two years ago. What's important is that management felt a mistake had been made, and decided to make a correction, and — this is important — move on with marketing plans for the future. But if you have the scab-picking mentality that you and P71 have, this fixation becomes ridiculous, because you're fixated on the past. The rest of us think about Ford in the future. You're in 2005-2006, we're in 2008 looking at 2009/10. You'll love the next Taurus and all the new stuff that's coming up. And with the cost of everything going up. Who can afford to buy them? Let alone finance them. By that time 2009-10. They'll offer 30 year loans on cars! (And you watch how many people will fall for that!) They're falling for the 7 year program now! Quote Link to comment Share on other sites More sharing options...
jobu37 Posted March 21, 2008 Share Posted March 21, 2008 Oh, and like Mulally is doing a good job? Anyone can cut a company to the bone, but increasing the top line is an art. Please take a look at the top line performance of Ford recently. Due to better net -pricing along with strong sales everywhere but NA, Ford has increased top line performance consistently through the 4th Qtr of last year. That is something GM can't say and we can all assume that Chryco certainly can't say it either but we also can't prove otherwise due to their private status. Accusing Mulally of being a cost cutter is like calling a person who shoots rabid dogs a dog killer. Point being, the first step in getting on the right path for any of the Big 3 is to get rid of overpaid, unnecessary employees. Anybody in their right mind would realize that was the first step in turning the ship around. That was more a result of the UAW finally realizing that the glass house that they had built over the last 25 years was about to crash down and they would be left with next to no union dues if the Big 3 all went away. Mulally will eventually be judged on his ability to take the egos out of Ford. The egos I speak of are the ones that made it nearly impossible for Ford NA and Ford Europe to communicate. The egos that made decisions the same way because that was the they learned it 30 years ago. His desire to not let product dangle in the wind until the next redesign. Since his arrival just about every vehicle that has been introduced has had significant updates each subsequent year after introduction. The next example of this is the Escape/Mariner. Both are already quasi-hits only to continue their strong performances with the new engine/tranny configurations out this summer. Instead of criticizing him for the one thing he had no choice in, perhaps you should look at the things he has done and will do to insure that their is a future for Ford. A person with common business sense can seem like a real genius when inserted in an industry run by egomaniacal "car guys" such as Mr. Foot in Mouth Lutz over at GM. In the end Mulally will be remembered for doing alot more good for Ford than Lutz or Wagoner will ever be remembered for doing at GM. Quote Link to comment Share on other sites More sharing options...
Edstock Posted March 21, 2008 Share Posted March 21, 2008 The caveat is that growth costs money and Ford doesn't do growth unless the total market is growing. Like the new Ka factory, like re-tooling Ghent for the Kuga, re-tooling OAC for the Flex, that kind of growth? The proper way is to sell a product the customer wants to buy more than the competitor's brand, however that is totally foreign to Ford. Product like the Edge, and the Fiesta? That kind of product? Thanks for playing Quote Link to comment Share on other sites More sharing options...
Edstock Posted March 21, 2008 Share Posted March 21, 2008 And with the cost of everything going up. Who can afford to buy them? Well, according to J.D. Power, something like 14.95 million people, this year, minus fleet sales, of course. Quote Link to comment Share on other sites More sharing options...
Bored of Pisteon Posted March 21, 2008 Share Posted March 21, 2008 (edited) Well, according to J.D. Power, something like 14.95 million people, this year, minus fleet sales, of course. Not exactly when you count how many of those are lease turn-ins, salvaged vehcile replacements, etc... Just how many people will go out and actually buy a new car this year... YOU TELL ME. I wonder how many will be Trucks? Especially diesel ones (With the price of diesel approaching $5.00 a gallon in some areas...) Who the hell is going to buy them? ...and what's wrong with the vehicles they got now? Edited March 21, 2008 by Bored of Pisteon Quote Link to comment Share on other sites More sharing options...
Edstock Posted March 21, 2008 Share Posted March 21, 2008 ...and what's wrong with the vehicles they got now? Who knows? Who cares? :shrug: Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 21, 2008 Share Posted March 21, 2008 The Ford way is you shrink the company by layoffs, plant closings, etc., therefore reducing your expenses and hope the top line will remain the same producing more leverage at the income line. Result is the company is no larger, but more profitable for one year. That trick is not repeatable two years in a row. Uhhhh, did you completely miss the 3-4% growth in global revenue and a roughly 1.5% growth in NA revenue in a flat global market and a shrinking US market? Quote Link to comment Share on other sites More sharing options...
mlhm5 Posted March 22, 2008 Author Share Posted March 22, 2008 Uhhhh, did you completely miss the 3-4% growth in global revenue and a roughly 1.5% growth in NA revenue in a flat global market and a shrinking US market? Oh, please. Ford has been losing market share and posting losses for the past 5 years in the automotive sector, or aren't we supposed to count that. IF Ford returns to profitability, it will be FMC that does it not the automotive sector. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted March 22, 2008 Share Posted March 22, 2008 Oh, please. Ford has been losing market share and posting losses for the past 5 years in the automotive sector, or aren't we supposed to count that. Not when the issue is what you specifically made it earlier: top line growth. Top line is precisely what it is. R * E * V * E * N * U * E. It is NOTHING ELSE. It is NOT UNIT SALES It is NOT MARKET SHARE IT IS R E V E N U E You asserted that Mulally could not increase TOP LINE performance. I posted information showing that under his first full year as steward of FoMoCo the TOP LINE ( R * E * V * E * N * U * E) INCREASED both worldwide and in the NA market. Those are F A C T S. You are wrong in your implications. You cannot shift the subject elsewhere to avoid being wrong. Quote Link to comment Share on other sites More sharing options...
P71_CrownVic Posted March 22, 2008 Share Posted March 22, 2008 Not when the issue is what you specifically made it earlier: top line growth. Top line is precisely what it is. R * E * V * E * N * U * E. It is NOTHING ELSE. It is NOT UNIT SALES It is NOT MARKET SHARE IT IS R E V E N U E You asserted that Mulally could not increase TOP LINE performance. I posted information showing that under his first full year as steward of FoMoCo the TOP LINE ( R * E * V * E * N * U * E) INCREASED both worldwide and in the NA market. Those are F A C T S. You are wrong in your implications. You cannot shift the subject elsewhere to avoid being wrong. And yet...you want the three biggest contributors to "R * E * V * E * N * U * E" to go away... Quote Link to comment Share on other sites More sharing options...
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