Ford Slashing Deep

[Bluecon]

How could one man cause so much damage? He thinks he is playing tiddly winks while he destroys the company and thousands of peoples lives.

 

"The production cuts drove home a harsh reality: Bill Ford's turnaround plan is not working."

 

"Ford on Friday also abandoned its goal of selling 900,000 F-Series pickups this year."

 

""It's just massive. This is going to be really hard on the supply base," said Erich Merkle, a brand analyst with IRN Inc. in Grand Rapids. "It has the possibility to push them over into bankruptcy.""

 

 

 

http://www.detnews.com/apps/pbcs.dll/artic...UTO01/608190360

[one2gamble]

so making the changes required to turn a profit indicates the turnaround plan isnt working?

[range]

Lets see....

 

aligning production with demand is a bad thing?

 

reducing excess inventory to avoid large incentives is a bad thing?

 

avoiding large incentives to maintain increasing residuals is bad?

 

I suppose they could have found some parking lots to store unsold cars, but I think Chrysler has all of those spaces taken right now.

 

I also suppose they could have resorted to selling huge percentages of vehicles to rental fleets like Chrysler and GM.

 

Why isn't Ford repeating past mistakes ?!!!

 

Off with their heads!!!

Edited August 19, 2006 by range

[Topgun]

How could one man cause so much damage? He thinks he is playing tiddly winks while he destroys the company and thousands of peoples lives.

 

"The production cuts drove home a harsh reality: Bill Ford's turnaround plan is not working."

 

"Ford on Friday also abandoned its goal of selling 900,000 F-Series pickups this year."

 

""It's just massive. This is going to be really hard on the supply base," said Erich Merkle, a brand analyst with IRN Inc. in Grand Rapids. "It has the possibility to push them over into bankruptcy.""

http://www.detnews.com/apps/pbcs.dll/artic...UTO01/608190360

Get rid of Bill Ford he has no clue what to do and find a man that can run an auto company and we will be in good shape, are you still out there Lee Iacocca?

[Edgey]

Bill Ford is mostly a figurehead, I wouldn't put too much blame squarely on his shoulders.

 

The deep cutting is part of Ford's turnaround plan - reduce capacity to meet demand instead of maintaining capacity through incentives and fleet dumping.

[LincolnFan]

i don't know what is wrong with that, that'll be better for customers since it will raise the Resale value.

 

just because they're not selling 900K F-Series doesn't mean that is the end of the path, Gas prices will get higher, 900K is probably unreachable anyway.

[silvrsvt]

I dunno what its doing in your neck of the woods, but gas is down to 2.83 a gallon in my neck of the woods...down .25 cents a gallon over the past week and half

[Footballfan]

Lets see....

 

aligning production with demand is a bad thing?

 

reducing excess inventory to avoid large incentives is a bad thing?

 

avoiding large incentives to maintain increasing residuals is bad?

 

I suppose they could have found some parking lots to store unsold cars, but I think Chrysler has all of those spaces taken right now.

 

I also suppose they could have resorted to selling huge percentages of vehicles to rental fleets like Chrysler and GM.

 

Why isn't Ford repeating past mistakes ?!!!

 

Off with their heads!!!

 

Alinging production with demand is a bad thing- especially when your product is lacking in so many areas. Ford had no problem using its full plate of capacity when it had a lineup of cars that people actually desired.

 

incresing resdiuals is a moot point; if people are not buying the car in the first place because it is so boring or does not meet the needs of the customer who cares about residuals?

 

Incentives and fleet sales? Even if Ford is selling some models at cost, it is a lot better they have the cash flow and market share than the competition. If not Ford GM, Chrysler, and toyota will be more than happy to pick up the sales. For now, when you have a mediocre lineup, differentiate yourself on price; at least you have a chance at retaining the customer when you come up with more decent models. It's a lot easier to retain a current customer than it is to get one back after they left for the competition.

 

Bottom line this company has gone to shit under Junior's "leadership" I can't think of a more poorly run auto company in the world over the past ten years. One common thread- Junior has been the chairman of the board.

[ZanatWork]

:blah: :blah: :blah:

Alinging production with demand is a bad thing- especially when your product is lacking in so many areas. Ford had no problem using its full plate of capacity when it had a lineup of cars that people actually desired.

 

incresing resdiuals is a moot point; if people are not buying the car in the first place because it is so boring or does not meet the needs of the customer who cares about residuals?

 

Incentives and fleet sales? Even if Ford is selling some models at cost, it is a lot better they have the cash flow and market share than the competition. If not Ford GM, Chrysler, and toyota will be more than happy to pick up the sales. For now, when you have a mediocre lineup, differentiate yourself on price; at least you have a chance at retaining the customer when you come up with more decent models. It's a lot easier to retain a current customer than it is to get one back after they left for the competition.

 

Bottom line this company has gone to shit under Junior's "leadership" I can't think of a more poorly run auto company in the world over the past ten years. One common thread- Junior has been the chairman of the board.

 

 

 

:blah: :blah: :blah:

 

 

 

How to spend a lot of words saying nothing we haven't read a dozen times previously. Whoopee.

 

None of this is NEWS. Ford's cuts were going to happen, but acting shocked and dismayed when they do is sub-moronic. Punching out stacks of cars and trucks that would have to sold at no profit or a loss? STUPID. Better by far to get the company's size alligned with their actual market share quickly and quit paying for factories and/or employees that aren't part of the solution.

 

If the other makes are picking up loss-leader sales-and you think that's progress-you'd be MADE for late 90's GM management.

 

The CD3 is selling near capacity. The Five Hundred-which had no realistic choice but to soldier forward with tepid power and styling-will join its D3 siblings in updates just months away. Ditto the Focus. The Escape and Mariner are both VERY strong in their market, while the F-series still leads trucks (and vehicles sold). The Mustang remains the hot coupe...gosh, what boring vehicles!

 

It's amazing to me, that the board's negative Nancies can actually function with minds determined to overlook all good news in order to whine ceaselessly about the bad.

 

Anyone paying attention at ALL would have expected this year to be difficult...I've forcasted it since early last year, because the major changes start in earnest next spring. This hasn't been anything like classified information!

[Bluecon]

Bill Ford is mostly a figurehead, I wouldn't put too much blame squarely on his shoulders.

 

The deep cutting is part of Ford's turnaround plan - reduce capacity to meet demand instead of maintaining capacity through incentives and fleet dumping.

Ford has no need of a multi million dollar silver spoon figurehead.

 

I wish he was a figure head only. The company would be in much better shape without his clumsy, stumbling, amateur attempt to run FMC.

[sept68]

Bottom line this company has gone to shit under Junior's "leadership" I can't think of a more poorly run auto company in the world over the past ten years. One common thread- Junior has been the chairman of the board.

 

 

Billy does have to go. He does not have the guts to do what must be done. The very existence of the corporation is in jepoardy. Jobs must go. Benefits must be cut. Wages slashed. We must accept that lost market share is not coming back. Some predict that Ford will go bankrupt. I doubt that. What probably wil happen is that the Ford family will relinquish thier control and look for true parternerships. We should get a good stock bounce from this. Ford is to important for one family to maintain a fiefdom.

[Bluecon]

Sums up how I feel about all of your anti-labor posts.

Zanatwork has never stepped inside a FMC plant but he knows the problem is all the unions fault.

If he actually worked with Ford management and was intelligent enough, he would realize they are for the most part incompetent stumblebums. The true problem lies with the management although the Union is not without blame.

Edited August 20, 2006 by Bluecon

[2005Explorer]

Ford has no need of a multi million dollar silver spoon figurehead.

 

I wish he was a figure head only. The company would be in much better shape without his clumsy, stumbling, amateur attempt to run FMC.

 

Well at least he is not taking any pay for the job. If they hire someone else they will demand big money.

 

I love half of the people's take on fixing Ford around here. They just say..."Ford just needs to come out with all new models next year. They need to replace everything...and NOW." Most people who claim they would fix Ford around here would have the whole business broke in a year. Ford has a budget to work with just like every automaker. They need to speed their upgrade cycles as time goes on and continue to improve their quality. It is going to take time. I know your opinion is that if Ford is not completely fixed within 6 months they are done. They have good models now and have to improve them. They have to replace the models that are bad...BUT...they have to work with the money they have. If they decided to throw a "hail mary" right now like so many of you want and blow all their cash building everything you have personally dreamed of...it better work and work well...or it's done. Game over.

 

Towards the end of the American Motors...before Renault bought a majority interest in it to keep them going...they took what little money they had left and threw a couple of "hail mary's" One was the infamous Pacer and the odd looking Matador Coupe (which shared nothing with the sedan). These products which they thought would be popular...fell flat on their faces in the market. The Pacer did ok for a couple of years then died...the Matador Coupe never even got off the ground. AMC squandered what little money they had left and when the products did not work...they were done. :titanic: If they would have been more conventional in their thinking and worked on improving existing products they might have held on as in independent auto company at least a few more years.

 

What is SO ironic...is now the former American Motors CEO is trying to give Ford advice. :D

Edited August 20, 2006 by 2005Explorer

[Bluecon]

Well at least he is not taking any pay for the job. If they hire someone else they will demand big money.

I thought he was being compensated with millions in stock options or something similar?

 

There is nothing wrong with compensating a CEO if he produces results. That is a ridicolous statement. Let me reword it.

 

Bill Ford is working for free so we will let him destroy the company and the lives of thousands of employees.

[Footballfan]

:blah: :blah: :blah:

:blah: :blah: :blah:

How to spend a lot of words saying nothing we haven't read a dozen times previously. Whoopee.

 

None of this is NEWS. Ford's cuts were going to happen, but acting shocked and dismayed when they do is sub-moronic. Punching out stacks of cars and trucks that would have to sold at no profit or a loss? STUPID. Better by far to get the company's size alligned with their actual market share quickly and quit paying for factories and/or employees that aren't part of the solution.

 

If the other makes are picking up loss-leader sales-and you think that's progress-you'd be MADE for late 90's GM management.

 

The CD3 is selling near capacity. The Five Hundred-which had no realistic choice but to soldier forward with tepid power and styling-will join its D3 siblings in updates just months away. Ditto the Focus. The Escape and Mariner are both VERY strong in their market, while the F-series still leads trucks (and vehicles sold). The Mustang remains the hot coupe...gosh, what boring vehicles!

 

It's amazing to me, that the board's negative Nancies can actually function with minds determined to overlook all good news in order to whine ceaselessly about the bad.

 

Anyone paying attention at ALL would have expected this year to be difficult...I've forcasted it since early last year, because the major changes start in earnest next spring. This hasn't been anything like classified information!

 

I swear, you must be either Bill Ford Jr or Mark Fields- because only idiots like them can paint a pollyana picture on such horrendous management we have witnessed since Junior has taken over. Loosing market share, 75 percent of the stock price, and leadership in the midsize car, luxury, compact pickup, and midsize SUV segements- and perhaps soon to be full-size pickup truck segment is not "good news."

 

The CD3 is a competent car, but the incompetent management put it in a plant that is strained by capacity- hence when the Taurus is dropped, Ford will not be able to meet demand. But I am sure that Chrysler, Toyota and GM will be more than happy to sell more of their respective vehichles. The 500 is undefendable- it looks like a beached whale and the Freestyle looks like a 1980s throwback.

 

Go to your kitchen, make a pot of coffee, drink it and WAKE UP! You are defending the worst management team in the auto industry.

 

Well at least he is not taking any pay for the job. If they hire someone else they will demand big money.

 

I love half of the people's take on fixing Ford around here. They just say..."Ford just needs to come out with all new models next year. They need to replace everything...and NOW." Most people who claim they would fix Ford around here would have the whole business broke in a year. Ford has a budget to work with just like every automaker. They need to speed their upgrade cycles as time goes on and continue to improve their quality. It is going to take time. I know your opinion is that if Ford is not completely fixed within 6 months they are done. They have good models now and have to improve them. They have to replace the models that are bad...BUT...they have to work with the money they have. If they decided to throw a "hail mary" right now like so many of you want and blow all their cash building everything you have personally dreamed of...it better work and work well...or it's done. Game over.

 

Towards the end of the American Motors...before Renault bought a majority interest in it to keep them going...they took what little money they had left and threw a couple of "hail mary's" One was the infamous Pacer and the odd looking Matador Coupe (which shared nothing with the sedan). These products which they thought would be popular...fell flat on their faces in the market. The Pacer did ok for a couple of years then died...the Matador Coupe never even got off the ground. AMC squandered what little money they had left and when the products did not work...they were done. :titanic: If they would have been more conventional in their thinking and worked on improving existing products they might have held on as in independent auto company at least a few more years.

 

What is SO ironic...is now the former American Motors CEO is trying to give Ford advice. :D

 

I have to refute some of your statements. There is an old saying "you get what you pay for." We pay Junior nothing (at least on paper) and that is what we are getting back- nothing. I would rather pay a CEO $50 million a year if she/he knows what they are doing and can get things turned around.

 

As for the product, nobody expects an overnight turnaround. However, Ford is doing little to sell the noncore assets and put them back in cars and trucks. Junior is holding on to Ford credit with his life, and Jauguar and Aston Martin have proven to be cash-sucking anchors to the company. We all know that Junior enjoys toying around in his Aston, but either sell the brands or dump them.

 

I think they have nothing left to do but go for the Hail Mary. Hopefully a crossover like the Fairlane will be it. They have to establish their leadership in something other than pickups if they want to continue to be a major (as in # 2 automaker) player in this country.

[Edgey]

Ford use to build capacity to meet initial demand, and then struggle to keep operations profitable once their inventory backs up. Too much volume will also make too many cars available so the desirability of the car goes down once it floods the marketplace. Keeping volume under control means a sustainbly profitable operation and a stronger future for the product in the marketplace. I think marketshare gain is of more value to the PR department since it's a hard statistic to flaunt...but it does little for Ford's longterm health.

Edited August 20, 2006 by Edgey

[bb62]

Ford use to build capacity to meet initial demand, and then struggle to keep operations profitable once their inventory backs up. Too much volume will also make too many cars available so the desirability of the car goes down once it floods the marketplace. Keeping volume under control means a sustainbly profitable operation and a stronger future for the product in the marketplace. I think marketshare gain is of more value to the PR department since it's a hard statistic to flaunt...but it does little for Ford's longterm health.

 

1. There is no such thing as too much volume, as long as it is not being sold with fleet cars. but that volume have to be planned.

2. Ford's problem right now is that it doesn't know where the "bottom" is. They've lost share since 1995 and don't have a clue what to plan for in their cycle plan. Vehicles that are profitable when 5 or 6 years out (the beginning of the process) need to constantly change their assumptions as they get closer to program approval to remain profitable. Quite ftrankly, I see Ford as either a minor player (less than 10% North American market share compared to the roughly 17% of today) or they go out of business entirely (which I consider more likely) because there is too much resistance to viable change in the LL4 on up ranks. It will take some time however to get there, maybe 5-8 years.

3. Though I don't have much admiration for Ford's current management, the Peterson and Poling days were models of professional and competant management. Mark my words, when the history of the downfall of FoMoCo is written, here will be the major internal (there are obviously external factors as well) causes of collapse:

a. Ford 2000 - initiated by Trotman was a major mistake that was the initial salvo in in the destruction of Ford. As a former director of mine told me, reorgs are not about efficiency, they are about power. And some organizations, like planning, lost out completely.

b. Nasser as CEO. He ruined Australia, he ruined South America, he ruined Europe, and Wayne Booker still could not press for him to vault to the top. Nasser was personally responsible for eliminating Ford's key successful executives that would have bred a multitude of talent below them. Management is often like an apprentice situation with the proper development. But the chain was broken.

c. Bill Ford Jr. and his patrician style of management. Ford the company needs a street fighter and got a dandy. But the process that made Ford successful and the people that made Ford successful (see points a & B) are long gone. Fields is just going to preside over the dismantlement of the company.

d. As a franchise, I imagine that the Mustang will be sold, same with the F150. Volvo will be spin off, as will jag and LR. Mazda will go its own way at the direction of Sumitomo Bank (the majority shareholder). Sad really because America needs to keep its manufacturing base. But it's going to have to happen elsewhere than Ford.

[Bluecon]

1. There is no such thing as too much volume, as long as it is not being sold with fleet cars. but that volume have to be planned.

2. Ford's problem right now is that it doesn't know where the "bottom" is. They've lost share since 1995 and don't have a clue what to plan for in their cycle plan. Vehicles that are profitable when 5 or 6 years out (the beginning of the process) need to constantly change their assumptions as they get closer to program approval to remain profitable. Quite ftrankly, I see Ford as either a minor player (less than 10% North American market share compared to the roughly 17% of today) or they go out of business entirely (which I consider more likely) because there is too much resistance to viable change in the LL4 on up ranks. It will take some time however to get there, maybe 5-8 years.

3. Though I don't have much admiration for Ford's current management, the Peterson and Poling days were models of professional and competant management. Mark my words, when the history of the downfall of FoMoCo is written, here will be the major internal (there are obviously external factors as well) causes of collapse:

a. Ford 2000 - initiated by Trotman was a major mistake that was the initial salvo in in the destruction of Ford. As a former director of mine told me, reorgs are not about efficiency, they are about power. And some organizations, like planning, lost out completely.

b. Nasser as CEO. He ruined Australia, he ruined South America, he ruined Europe, and Wayne Booker still could not press for him to vault to the top. Nasser was personally responsible for eliminating Ford's key successful executives that would have bred a multitude of talent below them. Management is often like an apprentice situation with the proper development. But the chain was broken.

c. Bill Ford Jr. and his patrician style of management. Ford the company needs a street fighter and got a dandy. But the process that made Ford successful and the people that made Ford successful (see points a & B) are long gone. Fields is just going to preside over the dismantlement of the company.

d. As a franchise, I imagine that the Mustang will be sold, same with the F150. Volvo will be spin off, as will jag and LR. Mazda will go its own way at the direction of Sumitomo Bank (the majority shareholder). Sad really because America needs to keep its manufacturing base. But it's going to have to happen elsewhere than Ford.

Great post. I always thought the downward slide started with Trotman.

[Mark B. Morrow]

:blah: :blah: :blah:

:blah: :blah: :blah:

How to spend a lot of words saying nothing we haven't read a dozen times previously. Whoopee.

 

None of this is NEWS. Ford's cuts were going to happen, but acting shocked and dismayed when they do is sub-moronic. Punching out stacks of cars and trucks that would have to sold at no profit or a loss? STUPID. Better by far to get the company's size alligned with their actual market share quickly and quit paying for factories and/or employees that aren't part of the solution.

 

If the other makes are picking up loss-leader sales-and you think that's progress-you'd be MADE for late 90's GM management.

 

The CD3 is selling near capacity. The Five Hundred-which had no realistic choice but to soldier forward with tepid power and styling-will join its D3 siblings in updates just months away. Ditto the Focus. The Escape and Mariner are both VERY strong in their market, while the F-series still leads trucks (and vehicles sold). The Mustang remains the hot coupe...gosh, what boring vehicles!

 

It's amazing to me, that the board's negative Nancies can actually function with minds determined to overlook all good news in order to whine ceaselessly about the bad.

 

Anyone paying attention at ALL would have expected this year to be difficult...I've forcasted it since early last year, because the major changes start in earnest next spring. This hasn't been anything like classified information!

 

Absolutely Right Zan. Everyone in the negative column seems to think that the reorganization of FORD should have happened in 6 months. On top of that the cost of gas increases stemming from Katrina and Iraq (or oil co greed) hurt Ford more than some others. As for Bluecon, I can't remember tha last time he had anything positive to say about Ford or its products.

[sparks will fly]

1. There is no such thing as too much volume, as long as it is not being sold with fleet cars. but that volume have to be planned.

2. Ford's problem right now is that it doesn't know where the "bottom" is. They've lost share since 1995 and don't have a clue what to plan for in their cycle plan. Vehicles that are profitable when 5 or 6 years out (the beginning of the process) need to constantly change their assumptions as they get closer to program approval to remain profitable. Quite ftrankly, I see Ford as either a minor player (less than 10% North American market share compared to the roughly 17% of today) or they go out of business entirely (which I consider more likely) because there is too much resistance to viable change in the LL4 on up ranks. It will take some time however to get there, maybe 5-8 years.

3. Though I don't have much admiration for Ford's current management, the Peterson and Poling days were models of professional and competant management. Mark my words, when the history of the downfall of FoMoCo is written, here will be the major internal (there are obviously external factors as well) causes of collapse:

a. Ford 2000 - initiated by Trotman was a major mistake that was the initial salvo in in the destruction of Ford. As a former director of mine told me, reorgs are not about efficiency, they are about power. And some organizations, like planning, lost out completely.

b. Nasser as CEO. He ruined Australia, he ruined South America, he ruined Europe, and Wayne Booker still could not press for him to vault to the top. Nasser was personally responsible for eliminating Ford's key successful executives that would have bred a multitude of talent below them. Management is often like an apprentice situation with the proper development. But the chain was broken.

c. Bill Ford Jr. and his patrician style of management. Ford the company needs a street fighter and got a dandy. But the process that made Ford successful and the people that made Ford successful (see points a & B) are long gone. Fields is just going to preside over the dismantlement of the company.

d. As a franchise, I imagine that the Mustang will be sold, same with the F150. Volvo will be spin off, as will jag and LR. Mazda will go its own way at the direction of Sumitomo Bank (the majority shareholder). Sad really because America needs to keep its manufacturing base. But it's going to have to happen elsewhere than Ford.

 

Agreed, great post, most of this I have been here for and have bitched about the Ford 2000 plan being one of the FIRST company killers I seen.

[DCK]

so making the changes required to turn a profit indicates the turnaround plan isnt working?

Please, what this indicates is Ford is clueless about what products americans want, even with massive incentives Ford can barely sell products. Its all about the product and Ford is terrible when it comes to products.

[the_automaker]

How could one man cause so much damage? He thinks he is playing tiddly winks while he destroys the company and thousands of peoples lives.

 

"The production cuts drove home a harsh reality: Bill Ford's turnaround plan is not working."

 

"Ford on Friday also abandoned its goal of selling 900,000 F-Series pickups this year."

 

""It's just massive. This is going to be really hard on the supply base," said Erich Merkle, a brand analyst with IRN Inc. in Grand Rapids. "It has the possibility to push them over into bankruptcy.""

http://www.detnews.com/apps/pbcs.dll/artic...UTO01/608190360

 

 

I agree. Many Ford suppliers will be driven to Chapter 11 & Bill Ford MUST go. His temporary solution is to sell Jag and perhaps even parts of Ford Credit.

 

This is like burning the furniture to heat the house.

 

The Automaker

[Bluecon]

Absolutely Right Zan. Everyone in the negative column seems to think that the reorganization of FORD should have happened in 6 months. On top of that the cost of gas increases stemming from Katrina and Iraq (or oil co greed) hurt Ford more than some others. As for Bluecon, I can't remember tha last time he had anything positive to say about Ford or its products.

Which reorganization? There has been many.