Ford, an American Icon
So it appears that Ford’s financial troubles are much bigger than anyone expected. In this article on Yahoo, it says they posted a loss of 12.7 billion in 2006. The article talks about how they are selling off their high end ventures (Aston Martin for sure, possibly Jaguar, Land Rover and Volvo). The thing that really made me decide to post anything on this was this quote that I found really amusing.
“You can cut costs as long as you want to but at some point you're going to end up looking like Nicole Richie and it's not going to be a pretty picture. You have to start building revenue."
Man the US loves pop culture. It’s sad that if you don’t keep up on it at least a minimal amount, an article dealing with financial/economic issues may become even more esoteric. Not because you don’t understand economics, but because you haven read US this month.
The thing is the AFP article is right. Ford needs to start making cars that Americans want to buy. When was the last time you heard someone talk about being in the market for a new car, and that they were considering a Ford (Well besides T3)? The general American public (not T3)loves cars that are fast, loud, and good looking. That’s what Ford was built on and of course the pick-up. Get back to your roots and give the public what they want. A car that will allow them to thrown down some sweet burn-outs.
This was pretty cool to see today too. Glad I got 30+ years to build the nest egg.
posted by evolving yeti @ 1:57 PM
5 Comments
5 Comments:
see - i think if they're loosin all this money they got nothing else to loose at this point. they should just go all in and reinvent themselves as the leader in alternative fuel vehicles.
throw all their money into fuel cells or make a better prius. the big 3 are going down anyway. might as well give it a shot.
p.s. i hate cars!
I hear what you are saying man, but again we are not the general public. It’s kinda like in the movie Singles. His idea for the Super Train was great and everyone liked it. The problem was people liked their cars more.
Look at how well Toyota does in our markets. One of their key selling pitches is that they have 6 SUV's, so one will definitely fit everyone’s lifestyle. Look how many people still drive Hummers, Jeeps and Escalades. The timing for a complete reinvention is not right. Americans, i.e. the general public, don't want hybrids or alternative fuels right now. Number one complaint is that they are too slow or too little power.
When we reach the point where there is a nationwide GHG policy and/or gas prices hit $5/gallon, and people are forced to drive alternative fuel or hybrids, then maybe. I don't know about staking an entire company, founded on blue collar Americana, on what might be. Pretty risky for a company that is a cornerstone of the American economy. I say sell off your high end financial heavyweights, get back to your roots, and continue your efforts on alternative fuels and vehicles.
But hey, that’s just my 2 cents.
Seems to me Ford just has a bad reputation for building cars that break easily. Honda and Toyota have reputations for making cars that are well-built.
I don't think it's a performance thing, it's a quality thing. Ford should make maybe 4 models, and do them right. Tigher quality control.
God I hate cars. Maybe if all the American carmakers go under then driving will be less subsidized.
Ford should make maybe 4 models, and do them right
Exactly. I love this idea. I think the CEO of ford is a genius. If he can pull this off we, the general pubic, will all forget that they were a giant car company in 5 years. Instead, they will pair down, become the underdog and build a brand image similar to Volkswagon or Subaru, unique with high quality. From that footing they can take a shot at dominating again.
Americans, i.e. the general public, don't want hybrids or alternative fuels right now
I'm not sure I believe this. If I had more time I would like to dig up some facts and look into the resale value of SUV's. As I believe value of that would be a better indicator of what is going to leave the "New Car" lot next year. When Emily went looking for a prius the salesperson told her (with a straight face) "no problem, With a $5,000 down payment I can get you on the list now and you should see a car in less than 2 years". There were poeple willing to tie up $5,000 for two years on a car that would lose exactly that the day it left the lot! While this doesn't speak for the volume as production capacity is extremely different, I also have a few friends that are having an impossible time selling their SUV. Lastly "right now" is not where Ford is going to make money. What's the market going to look like in 3 years? Hybrids, hybrids, hybrids.
There were people willing to tie up $5,000 for two years on a car that would lose exactly that the day it left the lot!
Again higher income, urban population. Small percentage of overall US population.
When Emily went looking for a prius
Educated and socially conscious. Think about all the people that were fooled into voting for Bush. Huge supporters of America (Ford).
What's the market going to look like in 3 years? Hybrids, hybrids, hybrids.
Not so sure. Three years is a really short time. It took over 10 years for just over half of the country to ever hear the words Climate Change. By the time we see a paradigm shift in US culture, morals, and values hybrids may be yesterdays news. Besides Ford is doing ALOT of work in Hybrids and alternative fuel vehicles. I say keep running with that. However, Ford needs to start showing profit in the short term, in order to alleviate worries current and potential investors may have. The way they need to do that is to cut high overhead ventures (Aston Martin etc.) and get people interested in what they already know how to do well. The idea of 4 or 5 base models is a great idea. And you’re right, make them into something unique, classy american cars. No unlike VW = classic german, Subaru = americas foreign car.
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