Can This Man Save The American Auto Industry?

[dwasson]

From: http://www.time.com/time/magazine/printout/0,8816,1151755,00.html

Part rebel, part prince, Bill Ford believes a green revolution can fix his family's troubled company. But can he make cars you'll crave?

In a makeshift ballroom at Ford Field, the Detroit Lions' stadium, a Beatles tribute band is playing I Want to Hold Your Hand, which has got the elite of Motor City moving and shaking, but not the hosts of the black-tie charity ball, William Clay Ford Jr. and his wife Lisa. In fact, the 48-year-old CEO of Ford Motor Co. is getting teased by his brother-in-law about his ineptitude on the dance floor. Turning to a reporter, Bill owns up to it. "You don't want to see that," the Ford scion says with a laugh. But he gets serious when the topic turns to his day job and what lies just around the corner for his employees: a sweeping restructuring that will bring tens of thousands of layoffs. "Honestly, I don't worry about myself," he says. "I mean, I can screw up my life, and it doesn't really matter"—a fair observation for a man who is an heir to a billion-dollar fortune. "But what I worry about is the impact all of this has on others. We're going to do what we have to do, but it's just very, very sad." Why did Bill Ford, great-grandson of the auto company's founder, take on this responsibility when he could have left it to hired professionals? It helps to understand that he is a man of epic contradictions. His family practically invented the auto industry, not to mention blue-collar consumerism. Brilliant, cantankerous Henry Ford made the first mass-produced car, the Model T, and paid workers enough so they could afford to buy one. That makes great-grandson Bill industrial royalty: he comes from a competitive, dynastic clan that cannot be separated from the nameplate on your Mustang. But he also has a complex, even squishy side; he's a passionate environmentalist who has studied Buddhist philosophy and thinks a lot about the future of the world.

So while he worries about his employees, Ford Motor's boss believes—belatedly, perhaps—that nothing short of a cultural revolution will save the family firm, which, like General Motors, seems to have all but lost a 30-year war with Toyota and other foreign companies for dominance of the U.S. auto market. This week he is unveiling a plan, which he calls the "Way Forward," a last-ditch effort to save the company by taking some big chances. Ford has surrendered market share in the U.S. but figures that a smaller, more innovative company can stir more passion among its customers. He wants to blow up the company's hierarchical traditions, trim the ranks of bureaucrats and encourage a climate of risk taking. He will go out on a limb with bolder car designs (in fact, one new model is called the Edge). And he will gamble that saving the planet from the car industry is the biggest long-term priority of all, so he will pour billions of dollars into eco-friendly factories and cars. Most notably, the company will dramatically increase production of its hybrid gas-electric models, promising to produce 250,000 a year by 2010, a tenfold increase from last year's output. "The old way of doing things doesn't work," Ford says. "Is [this] risky? Of course it's risky. But I tell you what: Going the way we were going is the highest risk of all."

(snip)

See URL for more.

[STLR FN]

I sure in the hell hope so.

[Donny Carlson]

Looks like the future at Ford is hybrid cars and trucks and not performance vehicles.

This may not work. What I've been reading is that hybrids are not necessarily as eco friendly and cost effective as presented. Will the public pay more for a car because it's a hybrid, or will they buy a Toyota or Nissan or Mitsubishi that's less expensive, gets almost the same mileage, and resales for $2,500 more?

I was wondering the if $258 per car loss includes sales of the Mustang.

I also noticed the complete lack of mention of Daimler Chrysler in the article. You know, those guys across town that acutally make a profit on thier cars that don't have home offices in Japan?

[Silver_04]

I sure in the hell hope so.

I agree, but it seems to me that the media has to quit casting this black quality cloud over American automotive companies. I just hear a slant towards imports and it's almost like the media relishes the opportunity to report a GM or Ford recall. If people would take the time to look at real data, like JD Power, they'd see the American brands are can compete head to head but are having to overcome a perception problem.

[jimlam56]

Looks like the future at Ford is hybrid cars and trucks and not performance vehicles.

This may not work. What I've been reading is that hybrids are not necessarily as eco friendly and cost effective as presented. Will the public pay more for a car because it's a hybrid, or will they buy a Toyota or Nissan or Mitsubishi that's less expensive, gets almost the same mileage, and resales for $2,500 more?

I was wondering the if $258 per car loss includes sales of the Mustang.

I also noticed the complete lack of mention of Daimler Chrysler in the article. You know, those guys across town that acutally make a profit on thier cars that don't have home offices in Japan?

Good points...no one knows how long those hybrid batteries will really last, plus hybrids have even more complexity than modern gas or diesel engines.
I read somewhere that even the lowly Corolla is more cost effective than a Prius, when you assume keeping the car for 5 years or so.
Watch out for DC, they seem to be the only member of the "Big 3" to appear to have their act togeher!

[QWK SVT]

he's a passionate environmentalist who has studied Buddhist philosophy and thinks a lot about the future of the world.

Great... A tree hugger running Ford. So... I guess my next car will come with either sauerkraut or a bowtie...


he will gamble that saving the planet from the car industry is the biggest long-term priority of all, so he will pour billions of dollars into eco-friendly factories and cars.

Go ahead, Bill, rRoll the dice... Somehow, I think the name of the game is appropriate.:rolleyes:
http://www.sevenfeathers.com/images/content/GRAPHIC-craps-header-card.gif

[Leadfoot281]

With record sales of 14 mpg SUV's, this guy thinks we want hybrids? Fords biggest sellers are trucks, SUV's and the Mustang.

FLM should do what GM did with Geo. Or Toyota did with Lexus. Or Honda with Acura. A fourth brand is needed at FLM. No one wanted to pay $35k for a Toyota, therefore they invented Lexus.

Honda NSX? $60K? Forget it! Acura NSX....$60K, well, ok! Hook me up!

Chevy didn't want their name on a little *****box so they came up with Geo. Naturally, once Geo got going (and didn't sink GM) they rebadged them as Chevys.

What happened to the Marauder? My guess is that not too many people wanted to slap down $38k for a Mercury. I think that Lincoln could have sold more Marauders (renamed of course....maybe Lincoln Destroyer?:rolleyes: ).

Cadillac Cimmaron. (remember that thing?) Again, no one wanted to pay double for a Cavalier. Cadillac couldn't sell them, but Chevy could!

It ain't no secret here that FLM needs a marketing department! They didn't have to kill the T-Bird either. Should have been rebadged/rebodied as a Mercury Cougar, Monterey, Cyclone, etc. While I'm at it, why not lenghten and rebody the Mustang? New Cougar! New Lincoln Mark 9!

Who's with me?

[jerrym3]

Except for the Mustang, where did Ford go wrong?

Let's not even discuss the Blackwood!

Marauder

First, maybe the Marauder should have been produced under the Ford name as Galaxie or 500XL or Torino. I'm a guy from the 60's. Nobody drove Marauders, or even Mercs. (In 68, I was one of the few younger guys driving a Cyclone GT fastback, but I just got married, and the styling of the car caught my eye.)

Why resurrect a name that wasn't popular with the musclecar crowd even back then?

And, go ahead, I'm thickskinned, I can take it, the car didn't perform out of the showroom as advertised. I was all set to buy one until I read the reviews. Maybe they should have labeled it as a GT (Grand Touring) or performance sedan, but they advertised a musclecar, and it wasn't.

Lincoln LS

Great start, good reviews, little bland on the styling and interior.

So, what do they do? They spruce the car up in 2003, give it more balls, and then leave it to die. No further improvements (except colors!) means no press, no "new model comparisons", etc.

I bought a 2004 LS8 Sport, and I love it. But, if it weren't for the deep discount, the Ford Z plan, and my wife's dislike of the Jag S styling, I might not have it. Even my son-in-law, who drives a BMW and a Volvo, was surprised by the way it runs and handles.

Ford Thunderbird (Yeah, I bought one of these too, a 2003 black/saddle interior model. Thought I got a good deal under the Z plan, but, in a few months later, they were discounting them like crazy.)

Late announcement, initial dealer price gouging, too many off the shelf parts (especially the dash), lacking content (my LS has so much more "stuff" than my TBird), limited market. The car also got a bum rap for not handling like a sports car, but TBirds never were considered a "sports car".

As for bringing the car out as a Mercury, maybe, but the styling would have to be more Merc oriented. Also, the Cougar name could have been a possibility, but the Cyclone name was another nameplate that never really got much attention (when compared to the competition) when it was first announced.

Ford decided that the dollars they had should go into the hot selling, big profit SUV and truck line. Probably a good decision at the time, but did any of the whiz kids do a "whatever" when, not if, the price of energy skyrocketed?

As for their new products, they are just not that exciting. And, when you read the roadtests of the new Honda "family sedan", you realize that that car with a V-6 will almost blow off a stock Marauder, TBird, and LS8 from 0-60!!! Imagine what they will do up against a Ford 500 or Merc Montego.

My daughter wants to get rid of her 99 Mustang and buy something new. I suggested the Focus, and she said that she didn't want a Ford. For Ford Motor Company, that element of buyer mentality is something to be very concerned with.

Local financial talk show yesterday predicted bankruptcy for GM and Ford within 24 months. Soft product line, and "here come the Chinese with even lower cost, quality vehicles".

[hitchhiker]

A silver spoon twit is going to save the company...Yeah right!

:D

[dwasson]

Looks like the future at Ford is hybrid cars and trucks and not performance vehicles.

You are never going to be a major auto company building performance cars. The real money is in transportation appliances. If Ford wants to be a major player in the global auto business they are going to have to convince people that thr experience and total cost of ownership for a 500 is at least as good as the Camrys and Accords. Frankly I don't see it happening on the path they are on. I still think that the only way Ford can compete is to go back to basics and offer a better warranty and guarantee a better resale value.

Here is where is the 2 year leases have hurt the US automakers. They have cut prices and given incentives, to put butts in seats and cars out the door. Two years later, they have to offer even more incentives because they are selling against the two year old lease returns. I would never buy a new transportation module (my wife bought the Accord) without a huge incentive. The two year old cars are half the sticker price and they only have 25K miles.

High performance cars and trucks are sensitive to gas prices. Every time some trader wakes up feeling insecure the truck market tanks. And Mustangs, GTs, and things like that are toys, They are not what people are buying when the news tells them that 28% of the workers in one of the biggest companies in the world will soon be on the street.

Until there is a true acceptance, at every level of the company, that Ford is in a quality and value based competition against every car maker in the world, Ford will never be able to do the right things. As long as you guys insist that the imports are not as good as Fords, and ignore the facts, you will never be able to make the changes that need to be made.

None of the things you UAW guys have said has convinced me that I should pay more for a car, or buy something I don't want, just to protect your jobs. What about the consumer? What is the duty of the UAW to provide good value to the consumer? Why should the small number of producers be allowed to protect their incomes at the expense of the greater number of consumers? Consumers outnumber you guys and you are never going to get them on your side by telling them that their choices are wrong or stupid. Even if everyone who bought a Honda was deranged and wasting their money, your refusal to accept that it is their right to choose means that you are doomed.

Make better cars, maybe take a pay cut, work harder, most of the country makes less than you guys do. Asking them to subsidize your lifestyle is not going to work.

[MENINBLK]

Looks like the future at Ford is hybrid cars and trucks and not performance vehicles.

What makes you think that Hybrid Vehicles can't be performance vehicles also ???

When Emissions was forced on vehicles in the 70s, everyone said,
'...there goes performance vehicles...' .
Performance vehicles were still built.

When tougher emissinos and computers were integrated into vehicles in the 80s,
everyone said, '...there goes performance vehicles...' .
Performance vehicles were still built.

In the 90s, Emissions became even more refined and re-defined
as California lead the way to even tighter and tougher emissions regulations.
New York State has also adopted many of the California Emissions Regulations
and other states are following too.
everyone said, '...there goes performance vehicles...' .
Performance vehicles were still built.

Here we are in the 21st century.
We are dealing with the highest fuel prices in history
and many of us are driving the very performance vehicles
that we swore would never be built.

The mere mention of 'H Y B R I D' puts the shakes in your pants ???
Come on now... You know the aftermarket is smarter than that.
I will be very excited to see what future technology has to offer us
in the way of energy efficiency.

After all, there are 'ELECTRIC' Dragsters, ya know....
They STILL manage to smoke their tires too !! :burnout:

[MENINBLK]

Until there is a true acceptance, at every level of the company, that Ford is in a quality and value based competition against every car maker in the world, Ford will never be able to do the right things. As long as you guys insist that the imports are not as good as Fords, and ignore the facts, you will never be able to make the changes that need to be made.

The TRUTH is that no one's vehicles are any better than another. They ALL have their problems.
The way the Manufacturer's Corporate people deal with the problems has a profound effect on the brand name.

[dwasson]

The TRUTH is that no one's vehicles are any better than another. They ALL have their problems.
The way the Manufacturer's Corporate people deal with the problems has a profound effect on the brand name.

That's probably part of it too. Because of the way the Chevy dealer treated me, and the lack of back up from GM, I will never buy another GM car. Honda has always treated us well. Why should I abandon them for an unknown element?

[Fastronald]

I honestly hope he pulls this off in a major way.

Not only to help Ford and it's employees but for America as well!

I was a born Ford man...............til the day I die!

All three of my kids Drive Ford products.

The torch has been passed in my family.

They make up the FOURTH generation of Ford product owners in my family.

[Leadfoot281]

You are never going to be a major auto company building performance cars. The real money is in transportation appliances. If Ford wants to be a major player in the global auto business they are going to have to convince people that thr experience and total cost of ownership for a 500 is at least as good as the Camrys and Accords. Frankly I don't see it happening on the path they are on. I still think that the only way Ford can compete is to go back to basics and offer a better warranty and guarantee a better resale value.

Here is where is the 2 year leases have hurt the US automakers. They have cut prices and given incentives, to put butts in seats and cars out the door. Two years later, they have to offer even more incentives because they are selling against the two year old lease returns. I would never buy a new transportation module (my wife bought the Accord) without a huge incentive. The two year old cars are half the sticker price and they only have 25K miles.

High performance cars and trucks are sensitive to gas prices. Every time some trader wakes up feeling insecure the truck market tanks. And Mustangs, GTs, and things like that are toys, They are not what people are buying when the news tells them that 28% of the workers in one of the biggest companies in the world will soon be on the street.

Until there is a true acceptance, at every level of the company, that Ford is in a quality and value based competition against every car maker in the world, Ford will never be able to do the right things. As long as you guys insist that the imports are not as good as Fords, and ignore the facts, you will never be able to make the changes that need to be made.

None of the things you UAW guys have said has convinced me that I should pay more for a car, or buy something I don't want, just to protect your jobs. What about the consumer? What is the duty of the UAW to provide good value to the consumer? Why should the small number of producers be allowed to protect their incomes at the expense of the greater number of consumers? Consumers outnumber you guys and you are never going to get them on your side by telling them that their choices are wrong or stupid. Even if everyone who bought a Honda was deranged and wasting their money, your refusal to accept that it is their right to choose means that you are doomed.

Make better cars, maybe take a pay cut, work harder, most of the country makes less than you guys do. Asking them to subsidize your lifestyle is not going to work.

I fully agree! Leases are hurting automakers, big time. My 04 MM was an Executive car. Bought used in 04, I paid $23k for it. A fourth name plate in the FLM line up would seperate it from Ford. I knew people that wouldn't drive a Chevy, yet they loved their Geo's! Go figure! The fourth division could be where Ford releases their Hybrids/*****boxs.

The Chinesse are going to eat Ford and GM alive with their cars. How many of you hardcore, die hard, Union folks never set foot in a Walmart? Low wages, equals low costs. You can't fill a single shopping cart at Walmart with American built goods for a reason.

[Silver_04]

The Chinesse are going to eat Ford and GM alive with their cars.

I wouldn't go that far. GM is the number one foreign manufacturer in China and that is a significant accomplishment. They outsold VW which has a virtual monopoly on taxis in that country. While the Chinese are going to be a force to reckon with in the US, they are likely going to be a bigger threat to the Koreans and Japanese. And given GM had to establish a working relationship with a Chinese auto manufacturer GM could start sending its Chinese cars over here to fend of the true Chinese product.

And personally after being involved with the Chinese in automotive development, I have a lot of reservations about vehicles designed by people that ride bicycles to work. Not belittling anyone as they are smart people, but there are some automotive design principles they just don't get. They are akin to the Japanese in design...overly complicated and the designs are beaten into submission a lot of the time. They just throw people at issues so it's easy to see how things can get out of hand...work harder not work smarter. I prefer the smarter approach.

[hitchhiker]

I wouldn't go that far. GM is the number one foreign manufacturer in China and that is a significant accomplishment. They outsold VW which has a virtual monopoly on taxis in that country. While the Chinese are going to be a force to reckon with in the US, they are likely going to be a bigger threat to the Koreans and Japanese. And given GM had to establish a working relationship with a Chinese auto manufacturer GM could start sending its Chinese cars over here to fend of the true Chinese product.

And personally after being involved with the Chinese in automotive development, I have a lot of reservations about vehicles designed by people that ride bicycles to work. Not belittling anyone as they are smart people, but there are some automotive design principles they just don't get. They are akin to the Japanese in design...overly complicated and the designs are beaten into submission a lot of the time. They just throw people at issues so it's easy to see how things can get out of hand...work harder not work smarter. I prefer the smarter approach.

Nothing personal, but I wouldn't spread that around too much.

Helping the Chinese ruin what's left of our automotive industry isn't too cool.

The blowback from transferring all this technology to China is that they will begin selling THEIR cars here in 2007!

:(

[Silver_04]

Nothing personal, but I wouldn't spread that around too much.

Helping the Chinese ruin what's left of our automotive industry isn't too cool.

The blowback from transferring all this technology to China is that they will begin selling THEIR cars here in 2007!

:(

Not spread what around? The fact that GM, a US automotive manufacturer, utilized Delphi, US automotive supplier whom I was an engineer for, to work with Visteon, another US automotive supplier, to develop product with Shanghai GM? What's wrong with that? I'm not helping the Chinese ruin anything. I'm helping GM establish market share in China. Here's some trivia for you. Guess where your sacred Ford is getting almost every radio manufactured at...ya wanna guess...okay time's up...China.

So if I take your approach, our last two domestic manufactures don't sell cars in the worlds fastest growing automotive market and miss out on gaining a lot of market share and making a lot of profit which in turn can be used to help offset losses in US operations. The Chinese will be selling cars on these shores whether we are in China or not. So I think it is best that US auto manufactures establish a large presence in Asia.

The more posts I read from you the more clueless I belive you are. Living under a rock gets you nowhere chief.

[dwasson]

Nothing personal, but I wouldn't spread that around too much.

Helping the Chinese ruin what's left of our automotive industry isn't too cool.

The blowback from transferring all this technology to China is that they will begin selling THEIR cars here in 2007!

:(

Silver, I think he's telling you that, after the revolution you are one of the first against the wall.

Probably after me though.

[merc6]

What would the 4th brand be? Ford is base model, Mercury was the in between and lincoln was the luxury side of the house? Would it be like scion for toyota? Fugly tuner cars with mods out the @$$ to make them still fugly but with mods?

[Leadfoot281]

I don't really like the idea of a fourth name plate at FLM, but I do think they ought to look at it. The success of Scion, Acura, Lexus, Saturn and (formerly) Geo, should have the Ford people thinking.

Keep the factorys running! Draw up some new name plates/badges, and then start building what they think will sell.

Call the new name plate THC. (tree hugger cars). It'll appeal to the "youth market" and the old hippies that like Hybrids. The way Saturn has donuts in their dealerships, at a THC dealership I'd hold informal hacky-sack competitons.

I'm surprised that Mercury is still kicking after what happened to Plymouth and Oldsmobile. "Price points" and marketing could have saved both.

For this reason I'd increase the base prices of all three current brands. Lincoln should (and could with GT's motor) go hunting for Bentley customers. Mercury should target BMW (with a new Cougar). Ford should kick things up a notch or two. And "THC" should be entry level (think Scion).

THC's first car could be a rebadged/styled Focus as it's "top of the line" car. Follow that with Hybrids, etc.

[Rider90]

I think we're at the point where my farts should be sucked from my seat and be stored in a compressed can for delivery to the combustion chamber. If that poof of air has enough power to singe my hairs, then imagine would it could do stored and compressed to be released in 8 cylinders?

The day I own a hybrid car and drive it to/from work is the day my nuts fall off. That's my personal opinion, and is not to be taken against those already driving hybrid vehicles, it's just my view of myself if I were to own something of that nature.

[Leadfoot281]

While I'm at it, I'd remove the Ford name from any component that goes into the new "THC" brand. You have no idea how many people I know that still think Geo wasn't a chevy, or that Saturn wasn't GM. I know former Cavalier owners that would have NEVER bought another GM car, that love their Saturn/ and or Geo!

Locate the THC dealers across town from any FLM dealer.

Think of the ads for THC cars! "Eco-friendly" Hemp fabric seats! No leather!(for the PETA crowd)!

And, by all means, give them factory designed speed parts for the "tuner" crowd. But not a FRPP catalog. There's money to be made there!

[hitchhiker]

Silver, I think he's telling you that, after the revolution you are one of the first against the wall.

Probably after me though.

Geez,

Are you just being obtuse for amusement?

What I am saying is that by seeking cheap labor in places like China, we are giving away valuable tehnology and business-process know how that elevates them to a level where they can easily compete with us, or at least do so sooner!

Regards,

David

:D

[hitchhiker]

I think we're at the point where my farts should be sucked from my seat and be stored in a compressed can for delivery to the combustion chamber. If that poof of air has enough power to singe my hairs, then imagine would it could do stored and compressed to be released in 8 cylinders?

The day I own a hybrid car and drive it to/from work is the day my nuts fall off. That's my personal opinion, and is not to be taken against those already driving hybrid vehicles, it's just my view of myself if I were to own something of that nature.


... :lol: ...

[jerrym3]

Let's keep in mind that it's not just labor/maunufacturing that's being outsourced. The knowledge jobs are going also.

My company is shifting it's help desk to India. How many others have done the same or something similar?

Hopefully, the standard of living will increase in those foreign countries and the workers will demand/get higher wages which will help balance the playing field. But, that's probably not going to happen for a long time.

[hitchhiker]

Let's keep in mind that it's not just labor/maunufacturing that's being outsourced. The knowledge jobs are going also.

My company is shifting it's help desk to India. How many others have done the same or something similar?

Hopefully, the standard of living will increase in those foreign countries and the workers will demand/get higher wages which will help balance the playing field. But, that's probably not going to happen for a long time.

I work in Information Technology. Outsourcing, and the importing of cheap foreign programmers is what pulled me into becoming very aware of this issue and caused me to become an activist for fighting it as well as for justice in the relationship between the corporation and other citizens.

I moderate my opinions with the knowledge that shareholders want a nice bottom line each quarter, but corporations must be good citizens too.

Legally the corporation is a citizen without voting rights. When the whole concept of the corporation was created many years ago, it gave the entity the rights of a person to represent the collective rights of shareholders, and it also attached the responsibilities that go with doing business and interacting with other entities. (people)

If our modern day corporations are no longer living up to their civic responsibilities there is cause for limiting their rights or even re-evaluating the whole concept of what we the people will allow a corporation to be.

Maybe Marty can help me out here with the precise definition of a corporation in American law and provide a more refined version of what I have just stated.

Corporations should exist at the pleasure of the American people.

Best Regards,

David

:D

[MERCMAN]

I think we're at the point where my farts should be sucked from my seat and be stored in a compressed can for delivery to the combustion chamber. If that poof of air has enough power to singe my hairs, then imagine would it could do stored and compressed to be released in 8 cylinders?



TMI :rofl: