Ford to accelerate Way Forward Plan
Mark Fields – "If we have to move faster and cut deeper, we will."
The Detroit News is reporting that Ford will accelerate its Way Forward Plan in light of the $123 million loss it posted for the second quarter, which was much larger than what analysts were expecting. Mark Fields, Ford's President of the Americas, and his gang will announce in the next 60 days what form this acceleration will take, but we can expect Ford to move faster in meeting its goal of shedding 30,000 factory jobs and closing 14 factories by 2012.
Ford's second quarter loss was so large, some analysts are questioning whether or not the Blue Oval has enough cash to last through the Way Forward Plan. Currently Ford has $23.6 billion in cash, but David Healy of Burnham Securities Inc. believes Ford will spend $10 billion of it this year and another $14 billion next year, effectively wiping it out.
The same analyst also claims Ford has "absolutely the most boring product line" in the industry. Is that why Ford is losing money hand over fist, or is it more systemic in the way the Blue Oval operates and does business?
[Source: The Detroit News]
The Detroit News is reporting that Ford will accelerate its Way Forward Plan in light of the $123 million loss it posted for the second quarter, which was much larger than what analysts were expecting. Mark Fields, Ford's President of the Americas, and his gang will announce in the next 60 days what form this acceleration will take, but we can expect Ford to move faster in meeting its goal of shedding 30,000 factory jobs and closing 14 factories by 2012. Ford's second quarter loss was so large, some analysts are questioning whether or not the Blue Oval has enough cash to last through the Way Forward Plan. Currently Ford has $23.6 billion in cash, but David Healy of Burnham Securities Inc. believes Ford will spend $10 billion of it this year and another $14 billion next year, effectively wiping it out.
The same analyst also claims Ford has "absolutely the most boring product line" in the industry. Is that why Ford is losing money hand over fist, or is it more systemic in the way the Blue Oval operates and does business?
[Source: The Detroit News]
Reader Comments (Page 1 of 2)
Duh 3:22PM (7/20/2006)
Make good products. People will buy them.
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Steve 3:42PM (7/20/2006)
Its hard to make good products when what few good engineers there spend most of their day going through red tape instead of engineering. Even worse is the fact that Ford keeps laying em off such that there isn't enough brainpower left to engineer advanced products. Instead they have to always slap together products to catch up to the competition. And finally what quality engineers that do remain tend to leave after being overworked and under-compensated to more exciting ventures in mechanical engineering.
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Chris 3:53PM (7/20/2006)
Even I wouldn't buy a Ford, when I was deciding between the Big Two (Ford & GM) I'd rather get a GM.
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atlkustoms 4:05PM (7/20/2006)
Should see Way Fordward results in
2007
2008
2009
2010
Somebody or anybody I need HELP
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1st_one 4:15PM (7/20/2006)
I didn't realize how broke Ford was...They should be looking for someone to purchase them!!!!
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ben 4:24PM (7/20/2006)
Should Ford's problems really surprise the Execs?
When your car lineup consists of a 6+ year old Focus, a rebadged Mazda6 (Fusion), vastly underpowered and poorly constructed Ford 500, a taxicab (Crown Vic), and the Mustang (which probably wont be redesigned for the next 10 years), what do you really expect?
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Mal Fuller 4:35PM (7/20/2006)
$123 million In 3 months? Why GM can lose that much in 3 days!
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doglet 4:41PM (7/20/2006)
most of fords product line is in drastic need of complete redesign. that has been the one problem that has presisted over the last few decades, ford needs a completly new small car, small truck, and a large rwd car platform. the ironic thing is that ford already has all of these scattered all over the world. somehow ford has found a way to spend money to engineer good products but not found a way to sell those products in more than one country! if tomorrow you could go to a ford dealership in the US and check out a euro focus, an australian falcon, and the next taiwaneese ranger then ford north america would be as profitable as its other markets.
why does ford spend the money to engineer a brand new model but not spend the money to retrofit its factories to produce it? just flush your money down the drain.
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Bob-o 4:43PM (7/20/2006)
Boring lineup or not, Ford still sells a decent number of cars.
They can't blame a $123 million loss in one quarter on sales alone. Its a much deeper problem than they'd like to admit, and its gonna take a total restructuring of the entire organization if they ever wish to return to profitability.
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Greg M 4:45PM (7/20/2006)
Ford is using all the Volvo and Mazda platforms now. The cars are boring and the lines are poor. I heard that Ford can't design cars with nice curves like Volvo and Mazda because of the Mechanical CAD system they use. The cars are boring and they look boring.
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Fasolt 4:52PM (7/20/2006)
I couldn't agree more. Ford's cars are safe yes, but they don't have enough SVT models, and their base models are wholly plain and unremarkable. The Ford GT is priced so far out of the market, that they can't compete with the Corvette. And what is the new Mustang SVT's name? It has the longest name in car history. The SVT Shelby Mustang Cobra 500. All this crazy cross retro branding is driving the market crazy. Ford needs to jazz up it's product line with all-wheel drive, turbos, superchargers, great handling and sporty styling. The Mustang is so over branded--Mach 1, Saleen, Cobra, Bullit, etc. Stop the insanity! And for heaven's sake, get rid of that solid rear axle!
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naggs 4:57PM (7/20/2006)
new ford designs are perfectly fine, the problem is that most of their product line is so laffably out of date that noone even looks at them. how many crown vics did ford sell to individual customers last year? now how many 300c/chargers did chrysler sell? a large rwd car should be a cash cow for ford but for some reason the are unwilling or unable to sell it in the american market.
did you know they are designing a totally new ranger THAT WILL NOT COME TO THE US!?!?!
companies that stupid deserve to go out of business.
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homeskillit 5:00PM (7/20/2006)
"And for heaven's sake, get rid of that solid rear axle!"
the mustang is the one bright spot in fords line up. only people who would never buy a mustang want the mustang to have an irs. those actually in the market for a muscle car know that the irs was the smart way to go.
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Tom Keough 5:01PM (7/20/2006)
I own a 2001 Lincoln Town Car. A month ago I was getting ready to buy another one when I read the leaked news that Ford was going to spend $9.4 billion in Mexico, lay off 32,000 American workers, idle at least 12 plants here and build new ones in Mexico while hiring 34,000 Mexican workers. I say, okay, sell your damn cars in Mexico. I just bought a Honda for my wife and am looking at either a Honda or Toyota for myself. By the way, they are more made in America than Ford will be shortly. So be it.
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Ed 5:05PM (7/20/2006)
The Ford Five Hundred is absolutely the most bland, boring, generic car on the market today. It looks like it was designed with 85 year old drivers as the market.
The Taurus and Escort were two of the top 10 sellers in America back in the 90s - not that long ago. Now, every Ford car looks like a rental lot candidate. I like the Fusion, but what else is there? Mercury makes no unique models, every Ford except the Fusion and F-150 is a joke.....there's just not a lot there (product-wise) to bail the company out of this hole.
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JP LEDOUX 5:18PM (7/20/2006)
I just rented a Toyota Matrix, what a great little subcompact. Hey Ford, go buy a Matrix and see what the fit finish and ride should of a quality subcompact look like. Your designs look like they are straight out of 1987!
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richard elsbree 5:18PM (7/20/2006)
I wonder how long it will take Bill Ford to realize that he has absolutely no idea what he is doing?
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dakota 5:32PM (7/20/2006)
" poorly constructed Ford 500"
Based on what information? If your going to bash at least provide some backup to your claim.
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laserwizard 5:39PM (7/20/2006)
Toyoduh made a killing at selling the dullest, most mundane products on the market (a close tie with Honduh).
As a Ford owner, I'm currently experiencing Toyoduh and Honduh like quality with my 1997 Escort. Running without shop time (save for a rubber brakeline that was dry rotting after 9 years, a fan belt, one set of tires, and spark plugs and wires and oil changes), this vehicle always starts, gets over 40 miles to the gallon consistently, and still shines, doesn't rattle, and has no visible interior wear. And I paid just over ten grand for it in May 1997.
I don't know where this blivethead analyst gets off saying dull is bad, but I will never ever buy a Toyota or a Honda and will return to my nearest Ford dealer for another one of their great cars. Dad has a Ford pickup going on 300k, mom recently traded in her 1973 Ford Torino Station Wagon on a Focus Wagon for fuel economy reasons (the Torino was in the 250,000 mile range). The only Ford that I've ever had problems with was more a product of a dealer who didn't fix the problem the first time (took it to another one and they fixed it and never had any problem after that).
Go Ford. Toyoduh and Honduh suck!
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the friendly grizzly 5:40PM (7/20/2006)
Ed of #14: my mom is 85, and I doubt she'd buy something as bland as any of the Fords. Then again, this was the same woman trying to hondle a deal the other day... had they offered her a better tradein on her CTS she'd be driving a Pontiac G6 convertible today.
And before the NiSuToyBishiDaZda crowd equates 85 with the G6 as normal, this is the same woman who drive Chryslers with hemi V8s, and Mercury Cougars when XR7 meant suspension enhancements, not upholstery grades.
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