When it rains, it pours: Ford's forward momentum slighted
Right now the thing Ford needs more than anything else is competitive product. They're doing everything they can to get those products to market, but it takes time. They can't tell us what the product is because it would further-deteriorate their competitive position, so we just have to wait and see if they're worth buying. Other aspects of recovery that Ford can work on more immediately include very important items like improving quality, lowering warranty costs, finding ways to cut materials cost, and making commercials that get the attention of potential customers. Ford is no-doubt working on all that and more, but It's hard to do if you feel none of it will matter in the end.
Many of Ford's goals have not been met on the Way Forward and it's bringing moral down. January retail sales numbers were 10,000 vehicles off projections and February and March don't look much better. Material cost reductions are also below expectations. New products like the Edge and MXK are selling well, but production hasn't ramped to the point where they're really helping the retail standings for Ford either. The biggest problem, though, may be that employees don't believe in the plan. Only 38% of all employees polled felt Ford had the products to compete and 45% feel the Way Forward plan is working. It is tough for employees to see the light at the end of the tunnel when the next hope for profit is 2009. Ford headlines have been very tough lately and employees could really use some good news to help boost their spirits. The problem is, good news is still a year or two away.
[Source: Detroit News]
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Reader Comments (Page 1 of 3)
RG 12:46PM (2/16/2007)
we want the Euro Focus! what happend to the hatchback here for 08?
Diesel in the F150 Now. Diesel options in many more vehicles. E85 is a joke, you use more of it than normal gasoline, so what do you end up saving?
bring the mondeo as the next gen Fusion or crown vic or make it a lincoln or mercury.
svt fusion with awd 6cyl turbo.
you have the cars, just put them on the road in america.
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akintz 12:46PM (2/16/2007)
Here's a plan: Mondeo + Focus RS to the US = Increased US Sales.
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Michael Karesh 12:47PM (2/16/2007)
I found their presentations during the press days at the Chicago show very disappointing.
A brief conversation with Mark Fields was not reassuring:
http://www.truedelta.com/blog/?p=37
My impressions from Fields' breakfast speech:
http://www.truedelta.com/blog/?p=29
They've got to get beyond the positive generalities. It doesn't help to say "we're going to make better products" if they have no clear idea of what will make their products better. I don't see a focus.
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whofan 1:00PM (2/16/2007)
." I think this vehicle (SMAX) would do more for Ford than the Edge, if it were here. Ford USA has no clue.
Back paddling by renaming the 500 isnt the answer either.
Ford already has the vehicles it needs to save its self. They are in Europe and Australia."
Ford could hand pick a combination of vehicles from their Australian and European line up then they would have a winning line for the US.
The Escape, F150, Crown Victoria, Mustang, keep and change everything else. Use the Crown Vic as your fleet utility car Police Taxes ect.
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SKluck 1:12PM (2/16/2007)
Euro Focus
Fusion
Mondeo (call it Taurus in US)
Interceptor
Mustang
C-Max
S-Max
Escape
Explorer
Expedition
F-Series
That's a bulletproof lineup. I wouldn't change much with their truck/SUV lineup. There is a need for all 3 of their SUVs, they just need to rely on their sales less. Bring over the Max's as van replacements, and dump the abandoned ranger.
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vettes2 1:18PM (2/16/2007)
FoMoCo will go Bankrupt. Mark it down. Read between the lines. No Product worth buying. They lost their way and forgot the 80's. Bankrupt and going out of business are 2 different things. They have more in LOANS than they have in Assets.
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SKluck 1:14PM (2/16/2007)
Damn, forgot about the Edge. Replacing the explorer entirely with the Edge would be a solid move.
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Tal 1:21PM (2/16/2007)
Ford has a tough row to hoe.
Ford apparently has a great vehicle in the Fusion.
So we know that if Ford has done it with one, it can build all Fords/Lincolns with the same HIGH standards.
Ford management has to believe the designers and engineers have created or will create vehicles that are honestly competetive on a world class level in every category.
Ford workers have to believe they are building the best and make sure they put forth evey effort to build them the best;accept no compromise from management, fellow workers or themselves and produce the best quality vehicle possible.
Americans want quality, durability,reliability, economy, safety, comfort, value and good looking style built into their vehicles. When you pay good ,hard earned $$$$$ for a vehicle technologically advanced vehicle, you expect all the features listed above.At a fair price.
There are vehicles being made like this but until America believes that Ford(GM, DC too) is producing the best, then other manufactuers will continue to sell their products more than Ford sells theirs.
Good luck Ford.
Build them and we will buy.
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dougjp 1:23PM (2/16/2007)
I think the employee survey results are a good representation of the odds of the Company's survival long term as an independent entity. Talk and action have to equate, hype without substance is obsolete - that's the '80's way and they still live there. A defining moment was the launch of the overdue 'new' Focus with nothing really to offer except changed style and....rear drum brakes on all models. Then look at the hype words about it from Ford.....'Nuff said.
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mooseman 2:57PM (2/16/2007)
I think in many ways they are making some good moves, in others profoundly stupid ones.
I think the Fusion/500/Taurus/Edge are dynamically good vehicles. The problem is they failed to add any spice whatsoever to the mix to create a media wave. The Taurus SHO is perfect example of how Ford brought some respectability to the nameplate.
Ford has a 4.4L V8 that fits perfectly in the 500/Taurus. Reason for not doing an SHO? A Fusion SVT? Why is the Euro Focus not here? Why hasn't the Ranger been updated in many many years?
They have ignored products, let them wither on the vine, for what? The Focus SVT was a perennial Car & Driver 10 Best winner. Look at the pile of crap they just rolled out now. It looks like it was customer clinic'ed to death. Lets add a dab of this a pinch of that, regardless of whether it makes for a harmonious whole.
My only hope is that Peter Horbury can save us from any further Ford 500s and Ford Focuses.
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epilonious 2:52PM (2/16/2007)
Hi, I am a twenty-something without a family...
I see nothing appealing in what Ford is offering in the states. The only appealing Products remotely associated with Ford happen to be Mazdas and Volvos.
Basically, the one car that is sort of what I am looking for is the focus... and ew. The focus is an overpriced mazda3 that is more demure and feels cheaply constructed.
I look at the stuff in Europe... Ka, Fiesta, C3 Focus, Mondeo... I like those cars.
But there is nothing like that here... so I just don't see myself shopping for Fords.
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Tim 11:52PM (2/16/2007)
First off let me say that the Detroit news does the best reporting in the auto industry.
Alan Mulally is not a "car" guy He is a business guy. He drove a Lexus. A good car a nice car but not a passionate car. He does know how to build value and package products. Look at Boeing and the Taurus resurrection. Good moves but look at the Taurus X re badging and their fusion add campaign. Practical but no emotion. If Ford does go bankrupt they have Mulally to thank for getting the most value out of the company.
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Pete Angilly 3:14PM (2/16/2007)
BUILD THE 04 BRONCO CONCEPT!!!
DUMP JAGUAR AND ROVER, it's too late to fix them now, you don't have the money. Cut your losses.
Bring over the Euro focus! Euro focus = young buyers see Toyota for reference. Young buyers = FUTURE FOR FORD MOTOR CO.
You better have one hell of an answer for GM on the new F-150, because GM's truck is gonna eat your breakfast and lunch if you don't.
The EDGE commercials SUCK!!
Tell people why they should buy this vehicle. This is not rocket science.
Iacocca did it with Chrysler.
Alan Mulally needs to get into those ads and SELL those cars. ie. "The Edge has a V-6 engine that was named one of the 10 best engines in the world, (people who don't know ANYTHING about engines know what an award is!) The new Fords have 6 speed automatic transmissions that help our products get much better mileage. Come done to your local Ford dealership and give the American Car Company that built America a chance to win you business"
And then you better be SURE that these people get treated RIGHT when they come. It's your game to lose. I'm a big Ford supporter, But God all mighty, let's get this ship turned around.
Why should people go look at the Edge? Because it drives around on the edge of buildings? FIRE the ad agency that came up with this slop. I'm a share holder, an owner, a supporter, some of the stuff here could be done this week. GET GOING!!!
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Phil 1:53PM (2/16/2007)
It's good that Mulally gets to see MEASURES of the plan in place. You have to admit you have a problem before you can take steps to solve it. So that poll
shows them that they have more intense work to do to get things back on track. If Mulally's word is good, he'll intensify because he's not been the type to continually bullshit everybody like George Bush after a problem is identified.
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tikirob 1:57PM (2/16/2007)
I do not see the reasoning in leaving the popular fresh design in Europe. GM started bringing over these designs for Saturn and it is revitalizing Saturn (Well at least they have some nice competitive cars). The S-Max and the Mondeo are nice and so is Focus. I was really unimpressed by the new focus here.
Rob
http://www.autoshortlist.com
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Daniel 12:28AM (2/17/2007)
If the FoMoCo Board of Directors wants to find someone to blame for this outrageous mess - try looking in the mirror.
Ford - try building products with great styling and value that clearly reflect your PASSION for your craft.
Good Luck.
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Tool 2:25PM (2/16/2007)
Like I've said many times regarding Ford, it needs to make some BOLD MOVES.
Luckily Alan Mullaly is a first class CEO.
We all know that they can turn it around, and many of us remember that we thought GM was dead not so long ago. Now look at how quickly they have turned around--in fact, GM might even acquire Chrysler group!!!
But the problem with Ford is that we aren't seeing much substantive real-world progress. I am pulling for Ford to stage a strong comeback, but based on the mediocre moves I've seen so far, I am a little concerned.
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fordman 2:28PM (2/16/2007)
when I look back to Jacque Nasser getting fired for the Explorer fiasco in 2000, I cant recall anything positive Ford has done since. (Explorer fiasco was not Nasser's fault but billy Ford Jr had to blame someone)
Under Ford Jr. They did absolutely done nothing from 2001 to 2006. all they have to show for it is a Mustang built on a 1998 Lincoln LS platform borrowed from Jaguar. The only other vehicle worth mentoining is the F-Series. Thats it.
even if a monkey was in charge, even if all they did was just redisgn current cars, they would not be where they are today.
The Focus is the same piece of crap since 1999. The Taurus was neglected and ultimately killed. The Freestar was the same garbage since 1995 Windstar. The list goes on and on.
All I ever saw Bill Jr. do was show up at press conferences in a new Mustang variation (SVT, GT, Giugiario, Shelbey, Hertz, FR500, Cobra, Roush, etc...) give a speach about how things are rosy and go away. There was no leadership anywhere to be found.
This is all sad.
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Aki 2:29PM (2/16/2007)
The thing is, they already HAVE the product. Fields and Bill Ford were just being incompetent. Honestly, I think the main reason why they didn't want to bring the new Focus here is profit margins. Compacts have very narrow margins compared to SUVs and trucks.
- Ford Focus RS outsold GTI, yet they refuse to bring here even when the GTI gets released here.
- Ford Mondeo destroys any new Ford sedan styling, yet we see nothing
- Ford Edge, in spite of all the stupid "Bold Moves" marketing, is not a top-in-class performer.
- Ford Five Hundred (aka Taurus) somehow manages to be even more stale than a Toyota Avalon, which is quite a feat.
They have nobody but themselves to blame. Thankfully Mulally seems to be taking the company in a better direction, but it's going to be a couple of years before we'd get any results.
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Aki 2:36PM (2/16/2007)
"We all know that they can turn it around, and many of us remember that we thought GM was dead not so long ago. Now look at how quickly they have turned around--in fact, GM might even acquire Chrysler group!!!"
True, but that's not only because of the product, but changing corporate culture. Wagoner and Lutz see things eye to eye, and that top-end synergy has cut through the company garbage that was bogging down product development for decades. GM always had the talent--Corvette performance is the proof. GM has been responding to the consumer (addressing reliability concerns w/ increased warranty, revamping interior quality).
Ford on the other hand has been neglecting consumers and forging along their own, narrow-sighted business plan. Again, it's not that Ford doesn't have the talent. Ford GT, Mustang, Mondeo, Focus, 427 concept and Fortynine concept are proof that they have great designers. Short-sighted corporate red tape, however, is stymieing product.
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