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DeLorenzo on Situation at FOrd


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this week's rant:

 

Next up, the desperate straits that the Ford Motor Company finds itself in dominates the media now and rightly so. An iconic American company inexorably linked to the very fabric of this nation that's now quite literally on the ropes certainly merits front page coverage. Let me just say that Bill Ford was the first head of a major automobile company to seek me out personally after I founded Autoextremist.com more than seven years ago, and in my limited dealings with him since then I find him to be warm, real, bright and intensely focused on righting the company that carries his family's name - and history - on it. But Bill was late to the realization that the rapidly changing global industry, the intensely competitive U.S. market and the burgeoning energy price upheavals would negatively affect his company in a huge way, which in turn made him late to the realization that the Ford Motor Company's fortunes were in danger of falling off of a cliff.

 

It didn't help matters that the stifling Ford bureaucracy that has been built up over decades conspired to keep the truth from him at all costs, either. When the Chairman has to go searching for straight answers from the assembled brains around him - and still comes up wanting - then crucial issues are underestimated, opportunities are missed, and monumental mistakes are made (the total bungling of the Lincoln brand being the most glaring). That's why Ford finds itself in the dire, life-or-death situation it's facing today.

 

Do I think Ford is toast? No, not yet anyway. Even though their sacred cash cow, the F-150 pickup truck, has come up lame in this era of consistent $3.00 and up gasoline prices, Ford still has something left in the tank. Remember me mentioning "the franchise" earlier? Well, the F-150 is still the franchise for the Ford Motor Company, even though the wind is out of its sales, but beyond that the upcoming Edge crossover is the most pivotal vehicle on Ford's plate over the next 12 months. If the Edge is anything less than a grand slam home run for Ford, then I would be fearful for Ford's fortunes.

 

I think Mark Fields gets it, and I think Bill Ford himself finally gets it. Desperate times require desperate measures - and Bill and his newly-invigorated troops are trying their damnedest to finally Do the Right Thing, albeit late. They will sell off brands to raise cash, there's no question - Jaguar, Aston Martin and Land Rover are all fair game, and as ugly as it is now, it could get even uglier before they see a genuine up-tick in their fortunes again. But if Ford can hang on long enough, they will emerge from this a better, more proactive and more focused company that won't let itself get lost in the wilderness again. At least I certainly hope not, because there won't be a next time if they screw this up.

 

I know we are supposed to be linking, but AE stuff disappears every week...

 

http://autoextremist.com/page2.shtml#Rant

 

Also click the link for more insights into many other companies. He is a former journo, and a consultant.. used to work for DCX, now works for GM, and for a while consulted with Bill Ford Jr.

 

Igor

Edited by igor
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I still dont see the sell offs everyone is expecting. At least not yet. If the new SD stagnates and the edge doesnt sell well then I can understand them moving some brands BUT they will not move brands that bring them money. In this case only Jaguar is really at odds but I dont know if Volvo is going to turn a decent profit this year with their models not moving that well though help is on the way for them.

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Toyota, Honda and Nissan has proven that two (or three in Toyota's) case are all that's needed to run a successful business. Maybe Jaguar and Land Rover should be dumped and the core focus should be on F-L-M, Mazda and Volvo.

 

 

If anything Jaguar and LR should combine forces completely in both manufacturing, engineering, design etc etc.

 

I almost dont see where Volvo fits into the skeem of things other than engineering expertise.

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I almost dont see where Volvo fits into the skeem of things other than engineering expertise.

 

Engineering is probably the most important thing Ford needs from its subsidiaries. They certainly aren't getting their money's worth in R&D from Jaguar and Land Rover. At least Volvo (and Mazda) kick in entire platforms and safety systems to the F-L-M lineup.

 

The most Ford should really expect from Jaguar, Land Rover, and Aston Martin is to make just enough profit to support their own operations.

Edited by NickF1011
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I usually read that rag for entertainment. Sometimes they make me laugh amd sometime, by accident, they tell you something worthwhile. But this piece is full of nothing but neggietives. This car situation isn't as terrible as this guy says. It's just too damn much negatory to have entertainment value. If Ghosn speasks with Bill Ford, so what? Car guys talking it car guys is a good thin. They are not at war with each other. They building and selling cars.

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Engineering is probably the most important thing Ford needs from its subsidiaries. They certainly aren't getting their money's worth in R&D from Jaguar and Land Rover. At least Volvo (and Mazda) kick in entire platforms and safety systems to the F-L-M lineup.

 

The most Ford should really expect from Jaguar, Land Rover, and Aston Martin is to make just enough profit to support their own operations.

 

 

you know what Land Rover really needs right now, as does jaguar. A V10/12 from AM. VW slapped the Lambo 12 in the Audi's....whats good for the goose....

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His take is pretty close, except with Ford, where he's way too pessimistic. One simple reason that he forgot, because he's Detroit-centric, is that all of Ford outside the US, with the exception of Jaguar, makes money — worldwide.

 

His rant about the MK S is an enthusiast's grumble. The car will be stunning. The twin-turbo 3.5 V-6 will have as much power as is needed.

 

It's actually good news, as it affirms that the MK S is not the 'flagship', which is yet to come. The TCar is toast for the 2008 model year so maybe we might see the UberLincoln by 2010, possibly sooner.

 

Anyway, the point is, Pete isn't as mentally involved with Ford as he is with GM and DC; so he doesn't see the changes, because the product hasn't made it to the showroom. Waiting is hard.

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It didn't help matters that the stifling Ford bureaucracy that has been built up over decades conspired to keep the truth from him at all costs, either.

 

 

Boy, can I RELATE TO THIS!!! My group in Ford is supposed to be doing testing of the computers in the car, and the equipment we have IS TOTALLY, 100% :censored: UP!!

 

My supervisor lies every chance she gets to the higher ups, ALL THE WHILE making us work 'round the clock shifts so that SHE looks good!!!

 

I'VE HAD ENOUGH OF THIS!!! I WORKED MIDNIGHTS FOR THIS SUPERVISOR, AND I STILL GET :censored: ON, DAILY!!!

 

I'm taking this to Fields, I've truly had enough!!! That's it, no more...

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Mr. DeLorenzo is usually pretty accurate, once you get past all the tired self-coined catchphrases and euphemisms he peppers his site with. And he does tend to beat the horses well past death just to say he told you so.

 

That said, it's subtly obvious he likes Bill Ford, and wants them to succeed... but the other poster here was dead-on in that GM consumes much of his mindshare, and he suffers from the I AM AN ENTUSIAST AND THIS IS HOW IT SHALL BE syndrome.

 

Nonetheless, it's hard for me not to agree with the general tone of his rant on Ford this week. His concession on the rumored TTV6 situation is spot-on: it might be a good thing in the long run, but doesn't help Ford's image in the near-term.

 

I think Ford is just stuck in a 50/50 image cycle right now. For every positive thing they do, there's something equally negative, thus giving the appearance they aren't really doing much of anything. Which we all know is not the case, but there's only so much a company can do at once. It's like a game of chess only the other opposing pieces are all moving too and your pawns keep changing their stance. So given limited resources and time, and so much research, and perception and "gut" feelings, what do you do?

 

You make a calculated risk where you can afford it and an educated guess when you can't.

 

I trust that Bill is doing the best he can to make the best decisions, if for no other reason than to protect his own inheritance... which is really a good reason if you think about it. 'Cuz if he goes down, it's over. So it's in his interest to succeed, and that would benefit everyone.

 

They did this before in the 80's. I wonder if they can do it again.

Edited by goingincirclez
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Aw hellz yeah!

 

I hope to god they nailed that sucker from the start, and we'll see it everywhere it'll fit, soon!

 

A revived and resepctable SVT could be a real possibility with a motor like that. Hell, even if they don't slap an SVT badge on anything, it would make for some interesting sleepers.

 

"Look at that lame-o Five Hundred over ther- WTF?!!" :bandance:

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Aw hellz yeah!

 

I hope to god they nailed that sucker from the start, and we'll see it everywhere it'll fit, soon!

 

A revived and resepctable SVT could be a real possibility with a motor like that. Hell, even if they don't slap an SVT badge on anything, it would make for some interesting sleepers.

 

"Look at that lame-o Five Hundred over ther- WTF?!!" :bandance:

 

now imagine pulling next to the Ford GT Five Hundred - the FH with a Ford GT engine instead of the rear seats ... that car was out of this world.

 

Igor

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now imagine pulling next to the Ford GT Five Hundred - the FH with a Ford GT engine instead of the rear seats ... that car was out of this world.

 

Igor

 

 

Yeah I remember that one from here. Take off the graphics, and that car still had "Bad-ass :censored: " written all over it. Totally useless as a Five Hundred, but still cool as heck. They should have built a few and sold 'em as even more limited-edition limited-support racing playtoys to the same types who bought the GT. You know Leno woulda bought one.

 

I hope Ford hired those kids on the spot!

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