What I know about Ford finally made public

Ohio XB · 31-03-2009, 03:25 AM

Finally, a great article about how Ford works now and what is different. This really illustrates the "New Ford" I've been touting on the board. The title of the article is Four Reasons Ford May Be a Company of the Future.

http://www.huffingtonpost.com/tony-s..._b_180234.html

Just a couple clips from the article. Please read the whole thing.

But if you spend a day with CEO Alan Mulally and his top executives, as I did recently, what you discover is a group of people who are laser-focused, hopeful, proud and incredibly passionate about the mission they're on - even without retention bonuses or long term incentive plans.

2. Transparency rules. My colleague Annie Perrin and I began our day at Ford at 8:00 a.m. by attending Ford's weekly Business Plan Review, which includes all of its senior executives around the world. Outsiders are regularly invited to observe the meeting. Every executive reports in on any new information that might influence Ford's overall revenue projections, or any other part of its plan. Mulally operates on the assumption that the truth will set you free, even when it hurts.

3. Personal responsibility. The day we were there, one Ford executive described a significant shortfall on a particular projection. It was the sort of acknowledgement that might have prompted high drama in many boardrooms. In this case, the executive simply went on to list the ways he intended to address the shortfall over the coming days, and invited other suggestions. No energy was wasted in wringing hands or avoiding responsibility or assigning blame. The focus was entirely on solutions.

Consumer Reports last month recommended 70 per cent of Ford's vehicles, for example, vs. 17 per cent of GM's and none of Chrysler's.

Steve

Cobra · 31-03-2009, 09:07 AM

Great article there Steve. Thanks for sharing that. It does appear that Ford are in the right hands with Mulally.

desGT · 31-03-2009, 09:17 AM

Agreed, great article. Also shows a style of management now lacking in most work places as we focus on the almighty dollar.

Ohio XB · 31-03-2009, 11:08 AM

Alan is the first guy we've had heading Ford that is not just thinking about how he can make a dollar today, which has been the problem for a long time. He's looking at long term viability.

I am going to post a link to an article that is even BETTER than this one. I got to read it because Ford has a subscription to it. It should be available without a subscription shortly, I hope. In this article Mulally states that Ford has got the concessions from the UAW that were needed and also from the stakeholders, who literally jumped at the trade of equity for debt, and actually had more subscribers for the equity exchange than Ford was making available, and this was at a LOSS for the debt holders. This equity for debt trade erased about $11.1 - $11.5 billion from Ford's books and also erases over $600 million a year in interest payments. The article comments about how Mulally was smiling so much and when asked he made the above statement and closed with with saying that Ford is now viable and on equal costs with the foreign transplants. The current downturn is temporary (it will get better sometime) and Ford is now just waiting for the uptick.

I've stated before, Ford is just waiting for the economy to pick up and then they are going to spring out of the gates!!

Seeing positive articles about Ford has been rare. Now we are starting to see reporters looking to get more info about Ford and hopefully soon they will start reporting on the amazing transformation of the company, like this article does.

Steve

Gobes32 · 31-03-2009, 11:30 AM

I fully agree, even in Oz there is the upbeat enthusiasm that although times have been tough, we have the worst behind us and a very bright future to look towards.

Walt Kowalski · 31-03-2009, 11:48 AM

Some great news there.

Especially in the light of BO's comments this morning about cutting further $$$$ dole-outs to Chrysler and GM

Anyone for a Ford Corvette in the aftermath? About the only GM product worth keeping if GM fails imo.

I have often thought Ford bought companies that produced special things. Ghia; Aston Matin, Jag, Land Rover, etc while GM acquired cheapo companies who produced rubbish cheaply like KIA.

At the same time, GM had a cosly network of dealers for almost identical cars with differnt badges- one for Pontiac, one for Chev, etc wheras Ford did not

It would be great to see Ford as the sole US survivor.

Nikked · 31-03-2009, 05:30 PM

Ford into the future

Nikked · 31-03-2009, 05:34 PM

I was thinking the other day, at the asumption that if GM and/or chysler go bust ford will as well.

The government will do all it can to have job security. Plus Fords new factory in brazil has alot of usually outsoursed sevices on site.

I see these a positive things, that would work in Fords favor, even if the other 2 crumble.

Steve · 31-03-2009, 06:04 PM

Quote:

Originally Posted by Munroman

At the same time, GM had a cosly network of dealers for almost identical cars with differnt badges- one for Pontiac, one for Chev, etc wheras Ford did not

Don't Ford do the same with Ford, Lincoln and Mercury?

**Dave R** · 31-03-2009, 07:42 PM

Quote:

Originally Posted by Steve

Don't Ford do the same with Ford, Lincoln and Mercury?

Well it's really just Ford and Mercury right now, Lincoln actually tries to make its cars a little different from the Ford donors like taurus/MKS and Flex/MKT (not that I dig the toothy grilles, but atleast they're trying).

FPV8U · 31-03-2009, 07:46 PM

Quote:

Originally Posted by Nikked

Ford into the future

Ford..is the future

XR6_190 · 31-03-2009, 08:56 PM

At least there is a bright light at the end of somebody's tunnel. Thing's are looking good for Ford, and their newer and upcoming product is excellent, so they deserve it.

cool65 · 31-03-2009, 09:14 PM

The hole dug in the US is about to hit bottom.

GM's shares were down 15 per cent on the New York Stock Exchange. The stock earlier dropped as much as 18 per cent to $US2.76, its lowest level since 1943.

Shares of Ford Motor Co fell 8.3 per cent, or 16 cents, to $US1.77

GM owes roughly $US28 billion ($A41 billion) to bondholders. GM also owes about $US20 billion ($A29.45 billion) to its retiree health care trust

GT69 · 31-03-2009, 09:22 PM

Quote:

Originally Posted by cool65

The hole dug in the US is about to hit bottom.

GM's shares were down 15 per cent on the New York Stock Exchange. The stock earlier dropped as much as 18 per cent to $US2.76, its lowest level since 1943.

Shares of Ford Motor Co fell 8.3 per cent, or 16 cents, to $US1.77

GM owes roughly $US28 billion ($A41 billion) to bondholders. GM also owes about $US20 billion ($A29.45 billion) to its retiree health care trust

Time to buy shares in Ford then

Daymoe · 31-03-2009, 10:10 PM

Quote:

Originally Posted by FPV8U

Ford..is the future

If you're not going FORD, you're going backwards!

Ohio XB · 01-04-2009, 02:05 PM

Here's a link to the post I made with that "other" article I mentioned. It's incredible!!!!

http://www.fordforums.com.au/showthread.php?t=11255218

The Taurus/MKS and Flex/MKT are pretty much the same vehicles under the skin, but the interiors and bodies are COMPLETELY different. Also, Lincoln always has the smoother ride.

It's not as bad as when the Lincoln Town Car was just a warmed over Ford Crown Vic. The MKX is a warmed over Edge, but I believe it is the last of that practice.

I personally don't have a problem with the same chassis being used because I know the Lincoln will have different springs and shocks plus a few other goodies, but Ford is making the bodies and interiors completely different now and that is good with me. It saves on building costs and presents two completely different looks.

Steve

vztrt · 07-05-2009, 01:43 PM

Thought I would throw it in here.

http://abcnews.go.com/Business/story?id=7520313&page=1

Quote:

Ford Takes More Fuel-Efficient Focus
Automaker Invests $550 Million in Next Generation of Compacts; CEO: 'We're Fighting for the Soul of Manufacturing'
By CHRIS BURY
WAYNE, Mich., May 6, 2009

Racing to return to profitability, Ford Motor Co. today announced plans to retool its Michigan truck factory to build a new generation of smaller, more fuel-efficient compacts.
The automaker re-focuses an SUV plant in hopes of restoring profits.

Investing $550 million, Ford, the nation's second-largest automaker, will create more than 3,000 jobs in Michigan alone.

The plant, which was once home to some of the company's most popular sport utility vehicles, like the Expedition and Lincoln Navigator, will be converted to produce a new Ford Focus compact, including an all-electric model to be sold worldwide.

CEO Alan Mulally announced the plans to expand the automaker's production of compact cars in front of an eager crowd of 500 employees and Michigan's Gov. Jennifer Granholm.

"Thank you for choosing Michigan," said Granholm, lauding the creation of jobs in the state.

Mulally said more than 2 million compact cars will be produced each year. The redesigned Focus will reach showrooms as early as next year.

"We're fighting for the soul of manufacturing in the United States of America and worldwide," Mulally said to applause from the crowd. "And we're going to make it right here in Michigan."

As Ford Expands, Competitors Struggle

Behind Ford's fanfare is a not-so-hidden agenda: The company is driving home the fact that Ford, unlike General Motors Corp. and Chrysler, is investing and expanding.

Facing a severe downturn, Chrysler declared bankruptcy in April, and GM is in the midst of a massive restructuring to stay afloat.

So, how has Ford reached a position to break away from the pack? In 2007, Ford mortgaged all its assets -- everything from factories to its blue logo -- to raise nearly $24 billion in capital.

"We knew that we were moving into a recession both in the U.S. and worldwide, we took that into account," Mulally told ABC News.

While it was a gamble, the funds gave Ford enough liquidity that the company was not forced to beg for government loans -- unlike its competitors.

"It gives them a good advantage of an image, the fact that here's a company that was able to solve its problems without taxpayer support," said James McTevia, whose company, McTevia & Associates, specializes in reorganization programs for businesses. "It allows Ford to make decisions without having somebody second-guess them."

Ford Looks to Seize Top Spot

Though Ford is faring better than the rest of the Big Three, it's far from stable. Sales are down 43 percent this year, marking the company's worst year since World War II.

"Ford, relative to Detroit, they are a lot better off right now," said David Whiston, an auto analyst at Morningstar. "Relative to the global marketplace, I don't think they are in the same league as Toyota, Honda and Daimler."

But while the automaker posted a first quarter loss of $1.4 billion, its stock has tripled in the last two months.

Ford has reached new deals with union autoworkers and many of its lenders, saving more than $10 billion. It has shed niche brands, including Jaguar, Land Rover and Aston Martin, and Volvo could be next on the list.

The automaker is also playing hard ball with dealers, offering new incentives aimed squarely at luring Chrysler's customers.

"Ford has just come out with a special program where if you're a Chrysler customer, you'll get extra money for trading into Ford," said John Crane, president of Golf Mill Ford, Illinois' largest Ford dealership.

"We're going to give them every opportunity to try a new Ford," Mulally said. "I have a lot of compassion for our competitors, but we are focused on the customers of Ford, focused on providing them the vehicles they really want."

Ford's gamble could backfire if it runs out of money before sales pick up. But the automaker is aiming high, hoping to surpass GM and become the nation's top selling brand.

R-Design · 07-05-2009, 02:04 PM

I think there are some ideas in the above article that Ford AU could implement.

They're really pushing out to the market and telling them where they're at, and in the US they're eating it up!

BlackLS · 07-05-2009, 10:12 PM

SBS 6:30pm or 7pm ABC news did a 3 min piece tonight about how Ford's current confident situation.

BlackLS · 07-05-2009, 10:16 PM

http://player.sbs.com.au/naca/#/naca...ans-expansion/

mik · 07-05-2009, 10:48 PM

good to see some forethought from Ford , that last video it appears they still have Volvo to sell for more capital if needed, it looks a very positive outlook for FoMoCo indeed.

ltd · 08-05-2009, 09:33 AM

The NRMA's Open Road has just recommended on its front page 3 vehicles that are affordable luxury; that the Ford G6E-T is an absolute cracker and at a fantastic price. Not that this means that much on appearance, but ask yourself how long ago it was that there was any falcon derivative recommended by the Open Road, especially one citing its quality, performance and precision.
Hopefully the momentum keeps going for Ford, and with Falcon up 24% last month there certainly seems to be hope.

csv8 · 08-05-2009, 11:14 AM

Can the marketting dept get their act together !!!!!!!

imugli · 08-05-2009, 11:19 AM

It may still be a little premature, but it's looking more and more like Mullaly has managed to turn the Titanic around...

2nd qtr figures will be very interesting indeed...

stm · 08-05-2009, 11:50 AM

"shows a style of management now lacking in most work places as we focus on the almighty dollar"

I think it's because they have this laser focus on the almighty dollar that they are doing these things (and being successful).

phillyc · 08-05-2009, 06:18 PM

I like the idea that "Ford smells blood" and is offering deals to existing Chrysler customers to switch over to new Fords.

This may not be good for Chrysler, but I don't particularly mind. I care about Ford and their products.

PS How many days before the extension for GM ends? Is it the end of this month?

vztrt · 17-06-2009, 02:33 AM

Ohio XB · 18-06-2009, 03:48 AM

Hey, thanks for posting all those links. I read a report about Ford's report and it basically pointed out "Hey, Ford gets it and they have really been changing", which is some welcome acknowledgment to the many changes in our business model.

I'll look into these and get back with my perspective; what the reports say and what I've experienced.

Steve

Wally · 18-06-2009, 09:53 AM

vztrt, the Asia Pacific region TGW% isn't impressive compared to the rest of company's efforts, but then again maybe those other regions are coming from a poor performing base. I wonder why they don't use TGW/vehicle for quality contrasts instead of % ? I also wonder how the posted 78% customer satisfaction compares to the recently published list that put Holden and Ford at the bottom of the pile?

Ohio XB · 22-06-2009, 04:15 PM

Looking over those reports its the same stuff we've been told and can read on our own in company information postings. At least we are not getting any false impressions given to us in either direction.

Steve