Mulally on Ford: "We are competitive now."
If we were cynics, we could say that Ford just happened to get stuck in deep doo-doo when America's credit markets were still reasonably flexible. When Ford leveraged all of its assets, right down to its logo, the most difficult part was probably not getting the money, it was probably swallowing its Blue Oval pride. Yet cynics or not, a CEO has to know what to do with said money, and Alan Mulally feels he and his company have done well enough to proclaim "We are competitive now" in a new interview with The Detroit News.
For starters, Ford managed to get the UAW to concede more ground and rework agreements. Unlike GM's present situation, Ford's bondholders didn't keep shaking their heads when Ford needed to exchange debt for equity, permitting Dearborn to reduce its debt liability by nearly 33%. Ford (finally!) began showering its European design flair and cars on an American public thirsting for beautiful domestic offerings. And Ford has cut production to match demand. The result: there are 32% fewer cars on dealer lots than a year ago.
Mulally says that Ford has prepared well enough that it won't need to take taxpayer money unless things get decidedly worse, but he doesn't believe that will happen. Although he believes that Ford can't turn itself fully around until the economy does, he did say, "The downturn is a temporary thing. We just have to make it through it."
[Source: Detroit News]
Reader Comments (Page 1 of 5)
the_MVP_X 7:35PM (3/30/2009)
Not really, keep improving, you would be the biggest idiots if u go rest, sure Ford it's the most advanced from the big 3 with GM close but don't be that stupid to put the guns down.
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Christophe 7:39PM (3/30/2009)
I am fairly certain that they will not be putting the guns down anytime soon, especially with continually better product coming out. They are committed to turning around.
kas666 7:42PM (3/30/2009)
I would say that the most exciting things at Ford are the things that are yet to come. It is my hope that 5 years from now when they are at the top of their game they don't make exactly that mistake. But not here, not now.
the_MVP_X 7:59PM (3/30/2009)
Yeah I hope they will have the financial position to make the Shelby GR-1 supercar and once again to kick Ferrari's ass once again.
Quantumphysics 8:03PM (3/30/2009)
GM has better looking vehicles - and counting the CTS-V, the better performers... but for some reason I like Ford quality more. The F-150, Expedition, Navigator and the new Taurus and Fusion as well as the Edge are awesome cars. Its easy to see why Ford isn't hurting as much as GM/Chrysler.
superman211 8:26PM (3/30/2009)
WHAT!?!? Not really?
They made good looking cars that have great value and reliability and improved MPG in a huge way this past two years. And you say "not really" ?
Get a life or an education or both.
Judy Zik 8:30PM (3/30/2009)
Considering the product they have in the pipeline I wouldn't say Ford is resting on it's laurels. Not by a long shot. People need to give credit where credit is due. Ford didn't just win the battle of the big 3 by default. They improved their quality and started building vehicles people want to buy. It doesn't hurt them that two of their biggest competitors are on the ropes but they have also done the work to be competitive. Bill Ford had the brains to realize he wasn't up to the task of the turnaround at Ford so he brought in someone who could get the job done. If only the same changing of the guard had happened at GM at the same time.
Jake B 10:12PM (3/30/2009)
Hopefully Ford can make advancements on their garbage aluminum heads that spit out spark plugs. My F150 just burped one out last week, no more truck :(
Mathew 10:28PM (3/30/2009)
I have had 3 F150's and not one has spit a plug (even changed the plugs myself on 2 of the 3, the 3rd is brand new) I have heard of this problem, but it I have not experienced it.
KIB2 4:08PM (3/31/2009)
Have you seen the new Ford Explorer America concept...big things to come.
Go to youtube and type in key word "thefiestamovement" the first video at the top w/ the green and blue guy standing next to the escape.
naggs 3:57AM (3/31/2009)
they are competitive now
fords have the best interiors this side of audi and they are reliable. they have great high mpg options for customers and they make the best selling trucks eleventy-five years in a row
if this economic disaster doesn't take us all down, ford is going to be just fine
plus the 5.0 is only a year away
Mr.Oak 9:00AM (3/31/2009)
Ford & Chrysler should have been much easier to turn around than GM. They are both leaner operations. Ford got it right, Chrysler didn't.
Chrysler never really had a chance. First they were plundered by Das Germans, then sold into slavery to an undertaker, (Who by the way, HAS money). Chrysler should never have gotten any bailout money, the government should have looked at Cerberus' books first.
GM: Anything that GM does, would be a half-baked effort, if it doesn't start with a comprehensive reform of the dealership network.
Having to build so many versions of what is essentially the same car, is second only to Healthcare & Pensions cost wise.
Cadillac - Luxury/Performance
Chevy - Mainstream
GMC - Trucks
Buick joins Vauxhall, Holden & Opel as a non-domestic brand.
Chevy gets the Solstice and makes it into a baby 'Vette.
Cadillac gets the Sun and makes it into a ?LR.
Chevy gets the G8, and we get a RWD Impala.
Having the Solstice that directly competes Sun, is incredibly stupid.
Pontiac dies, Saturn dies, domestic Buick dies.
I'm okay with a GMC Silverado. Flip a coin on whether you keep the Suburban or the Tahoe name, GMC gets that too.
Lets go make some cars.
d4rez 9:53AM (3/31/2009)
@superman211
The point he was trying to make is that despite all these improvements, others (non-domestic) do it better. Those others are not exactly standing still while ford plays catch up, so no they are not competitive.
Autblogist! 7:38PM (3/30/2009)
Wagoner, Nardelli, eat you heart out!
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g00fba11 8:27PM (3/30/2009)
While it's still early, this serves as a reminder to those who always mindlessly and sheepishly cry out "no one is ever worth this much $XXX". It matters when you have a strong leader, with a strong history behind you. Yes, there are fates and lucks involved...but can anyone imagine what FoMoCo would look like today, were Bill Ford still the CEO during the crisis? Hats off to Bill Ford for recognizing when to step aside as well.
TexRob 9:22PM (3/30/2009)
I must say, Ford is impressing me how they are handling all of this. I have noticed good changes in their cars over the past few years, and it seems they are actually being smart about things. I have never owned an American car, and never dreamed I would own a Ford, but if they keep heading this direction, I wouldn't be surprised if I did someday.
Aki 7:42PM (3/30/2009)
They're heading in the right direction, but I wouldn't go so far as to raise the victory flag and say they're competitive. Once we see Focus closely competing with the Corolla/Civic, the Fusion with Accord/Camry in terms of sales, then they can make that bold claim. Still seems like the Ford F-150 carries them through a lot stateside.
I do like the new Taurus and the new Mustang. I may be in the minority, but the new Mustang is one of the most beautiful ever made.
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Mike B. 8:31PM (3/30/2009)
i highly doubt you're in the minority.. minus the focus which needs that update to get here ASAP... ford's entire line is the best looking it has ever been...
KT 8:41PM (3/30/2009)
You must not have read the article. They are claiming victory over anyone. They are saying they have put the pieces together to be competitive on a cost basis. They have got some needed concessions from the UAW and they have relieved themselves of long-term debt. These are two things the other companies have not managed to do.
Going forward their cost structure is more in line with the foreign companies. If they continue their quality improvements and the new products hits the mark they should be fine.
KT 8:42PM (3/30/2009)
I meant to say..."they aren't claiming victory over anyone."