Anybody else watch the news? Ford losing billions

[Unit 5302]

This is an obvious question. Chrysler is already owned by a foreign company, Daimler. Although the name says Daimler Chrysler, there's no doubt where the ruling body of power lies. Ford is the next company on this block with rumored talks of Toyota purchasing Ford ongoing. Mulally has no great automotive history background with which to hold pride in, and Ford is currently screwed. Toyota has also indicated they are open to purchasing Ford Motor Company.

I don't think most people on this board understand exactly how dire the straights Ford is navigating are right now. They're absolutely on the verge of collapse, hemorrhaging cash from every location. After basically mortgaging everything they can get their hands onto, just to free up enough cash to try and turn the company around, it's a last ditch effort to avoid bankruptcy.

If things don't go exactly how Ford needs them to go over the next couple of years, I expect the Ford name be sold to Toyota, Honda or another major international company in a desperation move to maintain some value in the company.

[Mr 5 0]

Originally Posted by Unit 5302

This is an obvious question. Chrysler is already owned by a foreign company, Daimler. Although the name says Daimler Chrysler, there's no doubt where the ruling body of power lies. Ford is the next company on this block with rumored talks of Toyota purchasing Ford ongoing. Mulally has no great automotive history background with which to hold pride in, and Ford is currently screwed. Toyota has also indicated they are open to purchasing Ford Motor Company.

I don't think most people on this board understand exactly how dire the straights Ford is navigating are right now. They're absolutely on the verge of collapse, hemorrhaging cash from every location. After basically mortgaging everything they can get their hands onto, just to free up enough cash to try and turn the company around, it's a last ditch effort to avoid bankruptcy.

If things don't go exactly how Ford needs them to go over the next couple of years, I expect the Ford name be sold to Toyota, Honda or another major international company in a desperation move to maintain some value in the company.

This rumored 'Toyota buys Ford' scenario could become reality.

For other reader's edification, Toyota is currently #1 in sales in Japan. Here in America, Toyota is #2 in sales, right behind GM - and gaining. GM has announced that it plans to 'trim' vehicle production this year. Toyota plans to expand production. With billions in cash on hand, Toyota could probably afford to absorb Ford, especially if Ford sheds it's hyper-expensive UAW pension obligations, as they are attempting to do with the buyout package the company mortgaged it's soul to pay for.

Ford CEO Alan Mulally and Toyota Chairman Cho had a 'summit meeting' (tellingly, in Japan) back in December. While Ford and Toyota spokesman stressed that it was only to discuss 'cooperation on hybrid vehicle technology', no one paying attention was fooled as to the likely purpose of that extra-high-level meeting. However, the Ford family's controlling interest in the company could be a stumbling block to a future Japanese takeover of Henry's 104-year-old institution. Ford family pride (ego) may not allow them to let go of control without a fight. Even so, Ford's steadily deteriorating financial circumstances may force Ford family members to face -and accept - reality. It isn't 1959 anymore.

Japanese automakers, hungry and willing to take risks, started from scratch in the U.S. and, after spending years as little more than 'niche' auto manufacturers, making underpowered, tiny cars that most Americans then laughed at, learned, adapted, and, with design innovations, clever marketing and a dedication to excellence, even if it reduced profits a bit, have basically eaten domestic auto manufacturers lunch with reliable cars that people really want to buy.

Oh, Ford has certainly had it's moments - like the 1964½ Mustang - but a huge corporate bureaucracy and moribund management apparently could not be overcome. The brilliant Lee Iacocca - who was the major force behind bringing the Mustang to life, as it were, was abruptly fired by Ford Chairman Henry Ford II- because, as Mr. Ford said, "I just didn't like him". This boneheaded act of arrogance occurred in a year (1978) when the Ford company had a 2 billion dollar profit. Such was the arrogance and incompetence of of Ford senior management. No wonder the once-powerful Ford company has fallen on hard times. Sure, the over-generous union pension deals, benefits and high salaries hurt, but they are only a part of Ford's problems, not the true cause of Ford being in the unenviable position it finds itself, today. 'Poor management' may sound like a catch-all term but, in Ford's case, it fits.

For instance: allowing the popular Taurus to just fade away and then, ceasing it's production entirely (translation: they killed it) was a typical bonehead decision by Ford management, no matter what anyone may think of the now-defunct Taurus. The original Ford Taurus made it's debut in 1986 and was hailed by car critics as a true innovation in auto manufacturing. It was FWD, which was fairly unusual in a medium-priced U.S. car 20 years ago. The Taurus also abandoned the boxy body style most cars (including Fords) had being using for many years, going for an 'ovoid' (egg-shaped) look, which most potential buyers found appealing. Ford made improvements in the Taurus almost every year. Well, for awhile, anyway. Believe it or not, for a few years in the early-to-mid '90's, the pedestrian-but-popular Taurus was America's best-selling car.

Then, recognizing this was the kind of car the U.S. car-buyer wanted, Toyota and Honda basically co-opted it with the Camry and Accord and finally eclipsed it in U.S. sales, while Ford watched and then allowed the Taurus to become a rental-car staple. It's re-sale value as well as it's popularity slowly went down the drain while Ford looked the other way and pushed SUV's and pickup trucks for short-term gain. Japanese auto manufacturers also push their SUV's, vans and pick-up trucks, but they don't neglect their staple vehicle: the family sedan. As I see it, the Taurus was a winner out of the gate that Ford basically allowed Japanese auto manufacturers to mimic, improve on and finally, sail past it in sales, gaining customers (and their loyalty) as they found the Japanese cars were not 'cheap', but user-friendly and a good value, too. Sales of Camrys and Accords soared. Ford management yawned.

I think some of us certainly do understand the dire straits Ford is currently attempting to navigate. As a more-or-less disinterested observer (I don't hold any Ford stock) I have to honestly state that I see Ford as being in a corporate 'death spiral'. That being the case, a Ford-Toyota merger, similar to Chrysler-Daimler, may occur soon. That assumes that the Ford heirs and stock-holding relatives are willing to get out of the way and allow it to happen in order to see the Ford name - and their stock's value - survive.

We'll see.

i gotta agree with Mr 5 0 and drudis. either they learn to compete in this world or they will be bought out quickly.

[Mr 5 0]

AUTOMAKER ACKNOWLEDGES MISTAKE IN DROPPING TAURUS

February 7, 2007

By MARK PHELAN

Acknowledging Ford should have kept the Taurus name, Mark Fields, Ford Motor Co.’s president of the Americas, said this morning that the 2008 model of the Five Hundred will be called the Taurus.
Likewise, the Freestyle wagon will be called the Taurus X and the Mercury Montego will get the name Sable, as the Mercury version of the previous Taurus was known.
“We never should have walked away from the equity we built up with the Taurus name,” Fields said.

Ford surveys show the Taurus name is still recognized by 80% of consumers, making it the company’s “third-strongest Ford name behind the F-Series and Mustang,” he said, while only 40% of buyers even know the Five Hundred exists.

Using the right name is important, he said, but having the right vehicle must be the top priority.

“Winning companies are the ones embracing more products their customers want.”

The 2008 models go into production in Chicago after the summer shutdown.


I rest my case.

[bmxmon]

I just heard that on the news. I've always liked the 500, thought it was a sharp looking car. Hopefully sales will improve with the name switch.

[Mr 5 0]

“Winning companies are the ones embracing more products their customers want.” - Mark Fields, Ford V.P.

Stating the obvious is hardly brilliant insight.

Ford is in an absolute death-spiral. Too bad. A 104-year-old U.S. auto manufacturer with a great history - including the Mustang - but mismanaged into extinction. R.I.P.

[bmxmon]

Im wondering if the US govt would let Ford/Gm be bought out by foreign auto manufacturers. I dont know what the exact situation was with the airlines, (I dont think anybody wanted to buy them) but I wonder if the govt would step in, though they did nothing for Chrysler. Just a thought.

[Unit 5302]

Originally Posted by Mr 5 0

“Winning companies are the ones embracing more products their customers want.” - Mark Fields, Ford V.P.

Stating the obvious is hardly brilliant insight.

Ford is in an absolute death-spiral. Too bad. A 104-year-old U.S. auto manufacturer with a great history - including the Mustang - but mismanaged into extinction. R.I.P.

If I'm correct, Mr. Fields has been in his current position for a relatively short period of time, and openly attacked the decision to kill the Taurus shortly after his hire. Unfortunately, "the obvious" is something that has completely escaped Ford's senior management for many years so suddenly hearing it from anybody at Ford is probably a good thing.

In summary, I think his comment was more directed as a "duh, about friggen time" at Ford's executive management and board of directors than a new groundbreaking philosophy at Ford.