Alan Mulally charms in New York, praises restructuring despite layoffs
While acknowledging that losing a third of the salaried workforce has been an "upheaval" for employees, Ford CEO and president Alan Mulally said the company restructuring is "generally going well".
In somewhat of a fireside chat with the press to open the 2007 New York International Auto Show this morning, Mulally was charming and entertaining while asserting that Ford is in a strong position to reverse its financial and product slump.
"If you want to be in the automotive business, this is the best time to be at Ford," he said when asked about company morale following a large force reduction. At the same time, he instructed his posse, including North American boss Mark Fields, to stand up. "Look at the smiles on their faces," he quipped.
Mulally's keynote address to open press days at the show was really a few minutes of off-the-cuff remarks about his decision to join Ford, and he gave a 4-point rundown on the automaker's restructuring goals. Mulally had no pre-written speech, didn't use a teleprompter and walked casually around stage as he talked to the large gathering. He didn't make any announcements, either; although he did offer a hint about a future luxury hybrid. When asked about luxury hybrids, Mulally looked at Fields, then said, "Nothing I can talk about right now."
One of Mulally's funniest stories revolved around the Ford HySeries Drive, a plug-in series hybrid concept with auxiliary fuel-cell power. The car has two power inputs: an electrical plug up front and a hydrogen filler plug in the rear. A photo op was scheduled with President Bush on at the White House.
"We had to make sure the President plugged the electrical cord into the electric outlet, not the hydrogen," said Mulally, who added that he literally had to "manhandle" the president to the front of the car to avoid a refueling faux pax.
Mulally did not outline a definitive hybrid strategy for Ford, noting that the company is working on numerous alternative fuel options.
"The important thing is that we're working on (hybrids)," said Mulally.
Mulally did go into more detail on the company restructuring plan. He outlined a 4-point strategy that started with the layoffs and divesting of non-core manufacturing.
"We have to restructure down to real demand," said Mulally.
The next two steps are accelerating product development and obtaining financing.
"We will have 70 percent of the product line refreshed by 2008 and 100 percent refreshed by 2010," promised Mulally.
Another product goal for Ford is reducing its dependency on trucks and SUVs for profit.
"A few years ago, 30 percent of our sales were cars," noted Mulally. "Now its 46 to 50 percent. That's a tremendous transformation for Ford."
The final point is "working together," noting that cooperation with dealers, suppliers and even internally with Ford's worldwide operations is essential to the restructuring success.
While taking questions from the audience, Mulally made no commitment to upgrading the Crown Victoria platform or even to a new RWD platform. He also said, "I believe in Jaguar" but did not elaborate on plans for the luxury maker.
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Reader Comments (Page 1 of 1)
Joseph Hare 10:37PM (11/19/2008)
To the Senator's staff....please pass this on to the appropriate person within your group.. I think it is a simple pragmatic idea that the public and the car companies might embrace...Thank You, Joe Hare
'The 15% Solution"
One possible approach to dealing with the auto crisis -- The federal government could give any one who buys a fuel efficient car from the Big 3 Us automakers a 15% instant rebate back on the selling price. This program could have an 18 month time limit.
The total of the rebate dollars might then constitute a loan the auto makers would have to pay back.
If effective, this solution would immediately jump start US auto makers by giving them a huge advantage over the competition while they work on the
remaining legacy issues. Auto makers would stay employed and no money would go directly to the car makers.
The feds might also think about underwriting an extended car warranty program for this period. Again, the total dollars to do so, could constitute a loan to the auto makers.
If the dollars don't proof out, the concept still might we worth exploring.
Joe Hare
Hingham, MA.
More.....
A quick direct "15%" instant government rebate (say averaging around $3,000) from the Dept of Treasury paid to consumer with purchase of a US auto maker lower mileage car might make these cars especially attractive.
The problem with the fed using IRS tax return deductions is you only get indirect value (a lower tax payment) and but once a year (April 15)....and higher wage earners get more real dollar benefit.
If you could buy a Camry priced today at $20,000 for $20,000 versus a Malibu priced today for $20,000 for $17,000 (plus get a100K mileage warranty), which would you buy?
Giving a bailout just keeps them from going bankrupt while they try to get a higher % of americans to buy their cars. They have not suceeded in doing that over the last 20 years. Assuming Americans were motivated to buy fuel efficient Gm-Ford-Chrysler cars, the biggest stumbling blocks might be that the auto makers could not retool fast enough to produce enough low mpg cars to get profitable, that they could not get rid of their gas guzzlers, and that they can work out the union entitlements.
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100MPG ASAP 11:23AM (4/04/2007)
"Working on hybrids" won't be enough. Toyota has been selling tens of thousands of them every month.
Ford cannot play catch-up in hybrids. They won't survive if they can't compete with Toyota and Honda in fuel efficiency
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Shawn 11:34AM (4/04/2007)
The self-absorbed, delusional people that drive hybrids would never consider an American car. Ford needs better styles/design, and it needs to learn how go from concept to production.
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BEN 1:52PM (4/04/2007)
LOOK AT HIS JACKET THAT HE HAS ON. THAT ALONE TELLS ME NOT TO BELIVE ANYTHING HE SAYS.
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Infinihertz 11:53AM (4/04/2007)
#2, you might want to check back in when the Flex article gets posted. It looks a lot like the Fairlane concept. Not refuting your general point though.
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Robert O 11:58AM (4/04/2007)
I like this guy more and more. I hope he succeeds.
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Tiago Lacerda 2:04PM (4/07/2007)
AMERICAN CARS ARE THE BEST! DO NOT BUY JAPANESE CARS! WE ARE AMERICANS! WHY TOYOTA IS SO POWERFUL? USA! USA! USA!
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Mike 12:16PM (4/04/2007)
"he did offer a hint about a future luxury hybrid."
Question: How many of you are interested in buying a "luxury hybrid"?
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Bob R. 12:23PM (4/04/2007)
When will the Flex be unveiled????
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3cubedminus3squared 12:35PM (4/04/2007)
#7
blueovalnews.com has pictures of the Flex right now and specs.
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T.C 12:40PM (4/04/2007)
ford has the flex on there website
http://www.fordvehicles.com/flex/
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Don 2:42PM (4/04/2007)
Amen "Robert O"...I'm liking Mulally more and more as well. I hope he succeeds as well.
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roadside observer 2:02PM (4/05/2007)
Hey, 100MPG,
Ford could replace its entire vehicle lineup with sardine cans that get 60mpg and it wouldn't them because people buy vehicles for more reasons than simply fuel economy.
If fuel economy was the #1 priority, explain why Toyota came out with the gas-swilling 2007 Tundra.
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William Shallcross 10:33AM (11/15/2007)
My father was a Ford dealer in the days of Henry Sr. He would be proud to have Alan Mulally at the helm of Ford. I offer the services of my company, WWW.AmericanBusinessConsultants.us/ to assist him in any way we can. W.C. Shallcross.
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William Shallcross 10:30AM (11/15/2007)
My father was a Ford dealer in the days of Henry Sr. He would be proud to have Alan Mulally at the helm of Ford. I offer the services of my company, WWW.AmericanBusinessConsultants.us/ to assist him in any way we can. W.C. Shallcross.
Reply