Bill Ford, Jr. on FoMoCo's Way Forward: everything still on the table
Ford, Mulally, and Ford. Unlike the Three Musketeers, in this case it's all for two -- Bill Ford, Jr. and Alan Mulally -- and those two for one: Ford Motor Company. An eye-opening article called "Driven to the Brink" in the first issue of Portfolio magazine features a lengthy look at Ford and an interview with Bill Ford, Jr. on what he's been through, where the company is, and where he has to make sure it goes.
The initial numbers are staggering: a $12.7 billion loss in 2006, more than 38,000 jobs gone, a dozen plants shuttered, and of course, the $28 million paid to Mulally. Behind those numbers are others: $23 billion to finance a 2-year restructuring, $17 billion in expenditures over the next two years, nine more plant closures, 70% of all models new or improved by 2009. And behind those numbers is the scion held responsible for an American institution who wanted to create an environmentally responsible company before he was forced to, who had to fight his own company bureaucracy, and who, when turned down by Mulally the first time, said he was "silent and devastated. I had no Plan B." The quote about selling the company that some outlets attribute to Ford wasn't actually spoken by him (that was actually his former chief of staff), but on the subject of the future, he did admit, "We felt the best thing we could do was get our house in order. That doesn't preclude anything down the road."
The article dangles a number of fascinating possibilities. No matter what happens now, though, the company and the family are all in: to get the company that restructuring loan, Ford mortgaged absolutely everything -- even its own logo. As Anne Ford said, "If we lose, we lose everything." You can read the full article here.
[Source: eGM Car Tech]
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Reader Comments (Page 1 of 1)
whofan 6:59PM (4/18/2007)
The good ole days in America are comming to an end. The product Ford needs they already have in Europe. Our standard of living is going down because we gave everthing away for profit. Our future cars will have 1L engines. When I was in Germany the average car had a 1.8L engine. A whopping 2.0L 4 cylinder engine was big. Ford bring over your European line up. Your big trucks are more and more only for those who really need them.
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J.Crew 7:09PM (4/18/2007)
Wow, this is it folks. Sink or swim for the FoMoCo... Alan does not want that on his record so he better learn fast and work hard to turn this ship around. It is ALL about the PRODUCT!
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Daniel 7:50PM (4/18/2007)
Every see a large group of Monkeys trying to screw a football? FoMoCo Board of Directors.
It ain't rocket science folks - just make some better stuff to sell. Show the world that you are passionate about being the very best at your craft.
Offer products that inspire people - build the "I just got to have one" cars.
If you build them - they will sell.
I am a stock holder but it is for America's sake - I hope these guys can figure out some very simple secrets - the product has to be compelling, it has to move people emotionally, it has to sell itself. That's the way it was with the Big Three in Post WWII era - great and innovative product coming out year after year.
Either you can offer some world class product - your you can go back to the football.
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geo.stewart 8:08PM (4/18/2007)
oh if it were only as simple as good product. It has to be good product profitably and cover a legacy system that is dragging you down.
While Bill may not have done the best job, or even the job we THINK we could have done (isnt it always simple when you are not doing it, think parenthood before you had kids...), I have no doubt he has been and continues to be committed to doing the right things.
That he has mortgaged the company to the hilt to cut as much of the union as possible is a bold move that needs to be done to get rid of legacy costs. The products coming out are on the upswing,; the Edge, the fusion (yes I prefer the Mondeo), and F150 are competitve products at the least. I am ever hopeful that they will begin to upgrade the interiors as they shed legacy costs and create world platforms to cut costs.
Overall, GM and Ford are taking different paths to build but both are centered on good product. Ultimately I think Ford will emerge in a better position as they shed the legacy costs. They are shedding excess and legacy costs by buying them out rather than bankruptcy, an admirable achievement.
Disclaimer- not a ford employee or stockholder.
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Jim 8:09PM (4/18/2007)
It's almost impoosible to imagine how a Ford employee that has been asked to take a reduction in pay or been layed off must feel when they see "the boss" get paid a ridiculous amount of money. The Fors board needs to be serious about saving money, and it has to start at the top.
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geo.stewart 8:12PM (4/18/2007)
BTW:
Chrysler is hosed. If the Chrysler name survives past 2012, it will be a miracle. Dodge and Jeep will remain, and barely. execution is not up to snuff and designs are suspect (see Caliber, nee- Aztek Jr, Jeep Compass, and Sebring, nee the Platypus car)
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Daniel 8:22PM (4/18/2007)
Geo - the Ford Fusion is a very nice and competitive product - as nice as the Camry or Accord - that is until you open the door - then you throw-up. How could they put interiors that bad into such a nicely shaped car?
Open the engine bay and up-chuck again. Where's the world class 3.5 V6?
Make some product that inspires people to by it. Why is that so hard to figure out?
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John P. 8:58PM (4/18/2007)
It seems like alot of money, and it is. But I don't see Ford going the way of the Dinosaur yet. Remember IBM was on the ropes and came roaring back. All companies seem to work in cycles. For Ford, Alot of bad things came together at the wrong time and it bit them badly.
If they had a way of streamlining the world market for Fords and moving vehicles we want/need at certain times, like those Euro fords we need right now that SUV's have gone bust, they'd be ok right now. That, the Firestone fiasco, the greedy managers, unions, blah blah blah. It's a huge pile.
Glad I'm not there, but I'm pulling for them.
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Will 12:37AM (4/19/2007)
Daniel, are you retarded? Countless people and magazines have praised the fusion interior as -better- than the camry and accord. Also, stupid 3.5 won't fit. 3.0 turbo coming, though. :)
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doglet 1:05AM (4/19/2007)
the bureaucracy is a cancer that has crippled ford and will destroy it if something isnt done.
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Gary Lowe 4:41AM (4/19/2007)
Yet another corporate sob story. If AT&T was the Woolworths of the 20th century. Then Ford must be the Woolworths of the 21st century. A big dumb bureaucracy, a bad CEO and a head of design JC Mays, who once said "Americans don't care about good design" and he's proved it in every sub par product he's had a hand in.
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geo.stewart 8:17AM (4/19/2007)
Dan- you'll note I commented that they need to upgrade the interiors. I'm not particularly fond of the geriatric bent interior of the sport-oriented exterior for the Camry either. And the Accord is the flip of that. I think the gauge cluster on the Fusion is atrocious for a car in that range. And domestic automakers in general seem to stick withthe hard plastic for some reason. But as commented, they are getting praises in the press.
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Puffy C 8:19AM (4/19/2007)
Corporate execs care about two things - their paycheck and their pension. Until we make each dependent upon competent leadership then what motivation is there to do a better job? Whether Ford lives or dies, the execs still come out millionaires.
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airport krishna 9:23AM (4/19/2007)
Toyota and Honda must read this and feel even more empowered. Ford's biggest hurdle is "Ford-ness". They don't know what they stand for, they still believe the world revolves around the bubble of Dearborn, they're blinded by science and have lost touch with the core of the American car buyer and what emotionally motivates them (exception with Mustang and some trucks), they still believe the business world owes them something, they've lost touch with the raw sensibility of an entrepreneur, their leadership at the top still spend money like barons of priviledge, they're more concerned with bench-marking than bold moves (despite their ad campaign), they have twice as many dealers as they need... other than that, everything's peachy.
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Daniel 9:05PM (4/19/2007)
Hey Will, if Ford’s stuff is so good, then why were they $12 BILLION in the Red last year?
Why is it so hard to take a Ford Five Hundred and put a body shape similar to a Jaguar CF-X on it? Give the products some STYLE!
When a product is dumbed down so as not to offend anyone - it also does not inspire anyone. You have to take risks in business to succeed. In the car business in 2007 you have to be up on your toes and running as fast as you can just to stay even. Hyundai is breathing down your neck.
Come on Ford – show us the passion.
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