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Old 01-23-2006, 12:56 PM   #1
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What do you think about Today's Ford Announcement?

OK THIS thread got out of hand so I thought it would be nice to have a fresh one with "after the fact" reactions...

I will update this first post with links to various official reactions from mainsteam media as I find them..


--------------------------

MEDIA BUZZ
Yahoo Biz: http://biz.yahoo.com/ap/060123/ford_...ing.html?.v=15
CNN: http://money.cnn.com/2006/01/23/news...ex.htm?cnn=yes
MSNBC: http://www.msnbc.msn.com/id/10946664/
Reuters: http://today.reuters.com/news/newsAr...TRUCTURING.xml
Bloomberg: http://quote.bloomberg.com/apps/new...efer=news_index
Edmunds: http://www.edmunds.com/insideline/do...ticleId=109019

-----------------------------------------

Summary of the announcement:
CUTS

14 plants to close by 2012. 12 of those by 2008. 7 of those are assembly plants.
25k - 30k workers will be laid oof, but most of them by attrition.
10% reduction in management
reduction in salaries

NEW PLANS
more long term focus
no more deep incentives
no more "business as usual
focus on small (B and C) cars
build a low cost plant for small cars (location in NA but no more details)
more money to Quality Control and Research, with more freedom to develop their techniques for best results
more accountability of management
profitability in NA by 2008
better relationship with fewer suppliers
more part sharing in technology department
more focused design and development
more management accountability
every new model should be profitable
3.2 years between redesigns from current 4.4
more distinctive "bold" design
by 2010 half of cars sold are to be hybrids
----------------------------------------------

I think that is about it.

Igor



Last edited by igor; 01-23-2006 at 02:32 PM.
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Old 01-23-2006, 01:07 PM   #2
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igor, i was just going to post the bloomberg announcement:

bloomberg.com
http://quote.bloomberg.com/apps/news...fer=news_index

i do like the idea of, "playing offense," and i think that all of the major US automakers need to start waking up. also, the idea of new models in 3.2 years with profitability may be a little ambitious, but i also agree that they need to be done to find a niche or vein that hasn't been molested by GM or Toyota. and i agree that it sucks that Ford is closing US plants, but that's the reality of the situation: it's easier to pay cost of living in hermosilo, MX than detroit, MI. but regardless, hopefully we'll see more new vehicles with some styling pizzazz (unlike the 500) that go out on a limb, exciting people. just my rant. good luck to those affected, my heart goes out to you.
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Old 01-23-2006, 01:13 PM   #3
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Add, by 2010 more than half the Ford and Lincoln vehicles will be availible with Hybrid. I think that is a huge statement for Ford right there, they are going to begin focusing on something major with that move.

Also add, that they want their new cars and trucks to have a truely "distinctive AMERICAN design", and that they "innovative design, something that you'll look and and KNOW it's a Ford."

I hope they follow through with that being said about American design, I'd like to see some new truely unique styles come out of Ford, no more following the crowd.
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Old 01-23-2006, 01:19 PM   #4
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updated first post...
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Old 01-23-2006, 01:30 PM   #5
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i am not to happy to hear about the job loss however it is good to see ford has a vision and a way to (hopefully) better the company
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Old 01-23-2006, 01:35 PM   #6
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Why does the picture show them making the old Focus ?

Maybe that's the problem. Assembly workers are making the wrong cars and eating up valuable resources.

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Old 01-23-2006, 01:40 PM   #7
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^^^ LOL^^^
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Old 01-23-2006, 01:43 PM   #8
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^^^ I noticed that too.. oh well.. MSNBC was never the brightest of them all ...

Back on topic though....

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Old 01-23-2006, 01:46 PM   #9
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It had to happen sooner or later, its how business works it jsut very very unfortunate that all of those workers have to suffer for FOrd's mistakes. If Ford didn't get itself back on track imagine how many people would've lost their jobs too though...
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Old 01-23-2006, 01:51 PM   #10
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I think Ford has the right idea, although (with members of my family working for Ford) it sucks about all the job losses.

I just hope they follow through with their promises.

If they decide to build the Ford Reflex that they displayed at the auto show, it should capture some of those who buy the compact hybrid cars such as Toyota Prius and Honda Insight. Those cars are ugly and if Ford can make a car that gets the same gas mileage (65mpg) as them and look a hell of a lot better, then they WILL capture market share. I want a car that gets 65mpg, but I would never buy an Insight or Prius.....

Ford is taking a VERY AGGRESSIVE approach stating full profitability by 2008....I don't see that happening unless they are extremely close to it already....

On a related but separate topic, I got an email in my Ford mailbox this morning stating that "Today, Ford announces it has made profit for the 3rd year running." IMO, they chose the wrong day to announce a profit, when they were telling 25,000 they were losing their jobs. That was extremely tactless....
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