Autoblog

In all of recorded employment history, it has never been a good thing when the boss "requests" that employees talk up the company, especially when non-employees know that those workers are operating under orders. Nevertheless, that is exactly the road Ford appears to have taken as part of the "Way Forward," asking each employee to become a "walking advertisement" for the blue oval.

Ford's Executive Director of Automotive Communications, Ray Day, petitioned employees in a webcast earlier this week, and that was followed by an e-mail to managers from Mark Fields, president of Ford's Americas group. The mission, should they choose to accept it, is to say good things about the company to absolutely everyone. Fields wrote, "An improving reputation leads to higher purchase consideration among our customers and, ultimately, more vehicle sales. . . . We need to take this role very seriously as we speak with our co-workers, our neighbors and everyone with whom we associate." He even went so far as to urge employees to speak with "a more confident tone of voice."

While we can understand the intent, we haven't yet heard of employees who enjoy being told to be cheerful. Such a step would also seem unnecessary: Ford's vehicles and future look more promising than they did just a few months ago. And let's face it, considering the situation he parachuted into, we are still in the infancy of Mulally's turnaround plan. But surely Mulally was hired (and paid like Croesus) to shepherd the development of models that speak for themselves, not to lead a team of employees that have to be commanded to speak in spite of them.

[Source: Detroit News]

In a filing with the Securities and Exchange Commission that surfaced yesterday, Ford estimated that it the accelerated restructuring plan announced last September will cost $11.2 billion when the books are finally balanced. In other words, it will cost Ford$11.2 billion to let go of 38,000 hourly and 10,000 salaried workers. The estimate includes ongoing costs for health care for any workers that didn't take the lump-sum buyout. Who knew it was that expensive to reduce your workforce?

If there is any good news here, it's that Ford has already accounted for $10 billion of that cost in 2006. The rest of the associated costs of the restructuring plan will be billed to the first quarter of 2007. Nothing like pulling the Band-Aid off quickly.

[Source: Automotive News - sub. req'd]

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]

The downside to hiring a 61-year-old CEO is that as soon as he finds the executive washroom, it's time to start planning the retirement party. Ford's new CEO Alan Mulally looks young for his age, but that still doesn't change the fact that most CEOs in the auto industry call it quits in their mid-60s, with few lasting much longer according to Automotive News. If that's the case, Ford could be ready for another new CEO by the end of the decade.

Perhaps that's the plan, though. The company's 45-year-old President of the Americas, Mark Fields, is a little young and inexperienced to be CEO at his age, though some felt he was still passed over for the CEO job in favor of Mulally. Bill Ford has, however, trusted him with nothing less than spearheading the effort to return the company's North American operations to profitability. Mark Schulz, Ford's 54-year-old President of International Operations, is also reportedly on Ford's short list of CEO successors.

We have our money on Mark Fields to be the next CEO of Ford Motor Company if he can make North America a profitable place for Ford to do business again. In fact, Fields will be working very closely with Mulally during Ford's turnaround and would be wise to play the role of young Padouin if he hopes to have Mulally's seat on the Jedi council some day. Whoa, ever notice how everything can be related to Star Wars?

[Source: Automotive News – sub required]

Pitching Ford Motor's "Way Forward" program to the U.S. Chamber of Commerce "Competitiveness Forum" Wednesday, Ford's president of the Americas Mark Fields asked the federal government for a variety of support to "level the playing field" for domestic automakers in the U.S. market, including incentives for upgrading out-of-date factories.

The United Auto Workers have already called for tax breaks for factory renovation and government support for health care, but Fields is the first auto industry exec to openly ask for help, saying, in effect, what's good for Ford (and General Motors, and Chrysler) is good for the U.S.A.

Fields and other auto industry executives maintain that they are not looking for a government bailout. Rather, they want government to adopt policies that will help them compete with foreign-based automakers. In this vein, Fields says that companies building new plants (read, Honda, Toyota, Kia et al) get lots of state and local government subsidies based on the new jobs created, but companies looking to refit old plants (Ford, General Motors, DaimlerChyrsler) don't get much help.

It's not clear why Fields thinks this is a federal issue, when factory support is typically a state and local government concern. Perhaps its just easier to lobby one government instead of fifty.

A complete webcast of Fields' speech is available at the Chamber's website, here.

[Source: Ford]