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"But in the past four years, Ford has doubled the number of Quick Lane centers nationwide -- to 500 -- as the automaker and its dealers try to capture more of the profitable parts-and-service business. Suttles noted that consumers have generally disliked getting their car serviced at dealerships, where they have often had to make appointments and face long waits, among other aggravations."
Ford moves steadily into Quick Lanes
Ford posts largest quarterly loss in the histowy of it's wurld
Ford Suffers Record Loss
As Oil Shock Hits Industry
By MATTHEW DOLAN and JEFF BENNETT
July 25, 2008; Page A1
DETROIT -- In a fresh sign of the turmoil wrought upon the auto industry by high fuel prices and cratering demand for trucks, Ford Motor Co. reported an $8.7 billion loss for the second quarter and outlined a plan to reorient its North American operations to ramp up production of small cars.
Ford's loss was its largest quarterly setback ever.
They say they have cash reserves of $28 billion and access to credit of another $10 billion, which means at their current burn rate of just shy of $1 billion PER MONTH, they still could go three more years without seeing profits and without going out of business or declaring bankruptcy. That might be enough time, but I dunno:
- they plan to rejuvenate the Mercury line, talk about throwing your money STRAIGHT down the toilet
- they plan to "ramp up hybrid production" in 2009, yes, but what's their big new model debut for '09? Mmm hmm, the Lincoln 7-passenger. See above regarding throwing money down the toilet.
- they sure are gung ho about bringing those European Fiestas here....but not any time soon, as they are still two years away, if then.
- the European Focus they should have brought here years and years ago finally arrives next year. But if they didn't bring it before because they would have to sell it at a loss, what has changed that it will now be profitable?
- they are still gung ho about continuing the Explorer as a unibody crossover, which means I guess Taurus X goes away? But talk about a flooded market segment, 5- and 7-passenger crossovers....
- oh yeah, and they have extended the run of the Ranger to 2011, which is actually kinda interesting in a twisted way. A truck designed in the 90s will still be sold brand new in the 2010s. It's kinda like a museum piece you can buy in running condition brand new, and actually drive around....VW did this in third world countries for an extra 20 years with its original VW Beetle. In Mexico City they used them as taxicabs.
I think Ford will still be hurting in two years, and probably still in three years when all this cash they have sitting around has been exhausted. Their stock is down to $5 now, maybe people will think it is a bargain. Me, I would stay away.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Supposedly, the reskinned old Focus we got was supposed to be cheaper to design than refitting the factories for the Euro Focus (but that turned out to be wrong). Also, people are actually now willing to pay money for smaller cars with interior features from bigger cars, so Ford doesn't have to blow out Foci for $12k anymore (or so they hope).
Seems to me they will have to do a lot of the aforementioned to get a decent sellable low price against some stiff competition.
Yes, they would probably pay more money as you stated...but....how much more!! :confuse:
Can you cite a source for this?
From Automotive News:
http://www.autonews.com/apps/pbcs.dll/article?AID=/20080724/ANA02/529215502/1200-
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Being a designer (Or engineer) in 'bad' times is very dangerous. I recall when I worked for a government contractor. Big, well known company at the time which was soon after swallowed up by Lockhhed. Any case, there were a couple dozen engineers working on pieces of a project. The ones who were slow and behind schedule had job security. THose who finished their portion were laid off as soon as it tested out clean. Is this any way to run an airline? Or a car company?
"Mulally also has agreed to cut his annual salary to $1 to win congressional support of the federal aid plan for Detroit. In a statement, Ford said Mulally's $1 salary is "a sign of his confidence in the company's transformation plan and future."
Ford also said it is canceling all bonuses to be paid in 2009 for all management employees worldwide and forgoing bonuses for all employees in North America. It is also reducing its U.S. dealers. "By year end, Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall — or 14 percent from year-end 2005," it said."
Ford Speeds Up Plans for Electric Vehicles in New Pitch to Congress (Inside Line)
They are being duplicitous, saying they don't need a bailout, "but may need access to credit in 2009". Of course they will! They just said in the paragraph before they won't make a profit for the next three years! They are trying to make it sound like they are playing along but don't really need a bailout, when the reality is they very much DO need a bailout, they just won't need the first payment for six months (unlike GM, which needs a BIG taxpayer gift under its Christmas tree).
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
So, yes, Ford is burning through cash, but, unlike GM and Chrysler, it's not burning through cash just keep the lights on. It is using that money for new vehicles - not a bad move, as the economy will eventually improve, and then people will want new cars and trucks.
I think if anything, Ford is being seen in a much brighter light because of all this bailout news and it would be a great opportunity for the company to arise out of the ashes as a leader rather than a follower. I keep reading alot of folks out there who really believe that under the leadership of Mullally, Ford has really turned a corner and is the most likely to survive this. There have been plenty of these folks who would even put Fords on their shopping list for their next car purchase, something they wouldn't have considered in the past. And to back this up, it looks like Ford quality has matched and even surpassed the Hondas and Toyotas of the world, they are certainly putting the money where their mouths are.
I seriously hope they keep up the efforts to right the ship, continuing to improve their quality, reliability while staying ahead of the curve in design, feature content and safety. This is a big opportunity to get over the hurdles of past mistakes and winning customers back from the imports and they don't come around to often... Nor would I expect many more opportunities like this in the future.
So to Ford I say keep up the great work and stick to your guns. Don't get complacent, and don't expect a light at the end of this big, long tunnel. Treat it like there isn't one.
That I am looking at Ford as a possible new car purchase is amazing in that my other experience with them was horrid. I'm seeing too much of a turnaround to ignore it. I'll give them a chance when the time comes.
I give Bill Ford credit for firing himself and bringing in Mulally.
Consumer Reports, Dec. '08, p.63 (no link unless you have free access through your public library like I do :shades: ). This is a subscriber rating, not the CR vehicle testing rating.
I wonder how much is at the expense of GM and Chrysler.
I know in November the market share of the big three was up by a percentage point, and most of that was because of Ford.
http://www.autonews.com/article/20081218/ANA04/812189967/1115
(free registration link)
I see that GM and Chrysler are going to get their money from Dubya. I just hope that Ford is not going to regret the decision to pass up the money. I'm sure they WON'T regret not having all the strings that are attached to this bailout.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
I hope you were joking about the "The Federal Deficit will skyrocket under the Dems control". I can only assume you were, as a reference to the virtual doubling of the national debt under Bush over the last eight years alone, and how it would be difficult to say it could be any worse under a democrat.
Now, y'all do raise an interesting question. Will Ford gain some fans as a result of not needing an immediate bailout? Will people be peeling their Calvin stickers off their Rams and Silverados and getting new ones for their F-150s?
Oh come on, they waste our ink (green) as well as paper, right? :shades:
I find myself wondering about Ford gaining while GM and Chrysler screw up...mostly because 1: the only ones left buying either ted to be hard core loyalists anyway, more likely to buy a used Studebaker than any other brand of new vehicle. And 2: I'm not sure Ford actually has the production capacity to take on GM and Chrysler's customer base anyway. They spent a lot of money (and time) CUTTING production.
There are reports of dealers have to scramble to get vehicles shipped in from other states to meet demand, and this January when every other Ford facility is shut down, there will still be two plants making F150s.
I think you're right. Even if they wanted to, Ford wouldn't be able to meet demand for a bunch of new buyers from GM & Chrysler.... I guess that's a good position to be in though.
Ford Picks Up PR Points for Declining Auto Bailout (Ad Age)
Ford sees sharp drop in US sales (Reuters)
These days the product isn't nearly that bad but you do have the promise of several more better cars waiting in the wings. We will see...
You do? Can you name a few examples please? Do you mean waiting in the wings for CY 2010 or 2011?
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
"The last 24 months have revealed some of our best quality results," said Ford's Curt Yun, director, Global Warranty. "Our new models have been achieving continuously declining warranty repair rates and lower warranty costs, as a direct result of our overall quality improvements."
Ford Backs Reliability Claims with $1.2 Billion in Reduced Costs
Ford Fusion Ads Break, Focusing on Fuel Economy (AutoObserver)
Fords sales have declined for the past five years...as a company sells fewer vehicles, it means that there are likely to be fewer vehicles to repair. Is the drop in Ford sales smaller than the drop in warranty costs? If so, that is good.
It's also important to know how the vehicle holds up AFTER the warranty ends. The worst problems with Fords in recent memory were the failing head gasket on the 3.8 V-6 and fragile transmissions in the Taurus/Sable and Windstar. Both of these failures usually occurred well after the warranty expired.
See Warranty Week for their analysis showing a downward trend. Ford's big supplier, Visteon, was also down, but just a hair. Delphi was down big from '07 to '08.
Ford Focus
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Ford is doing their darndest to win me over. I'd have thought it impossible at one point.
"And then there's Ford, which has its act together more than any other American automaker right now. The revamped 2010 Fusion is a competitive car, the up-to-date Euro version of the Focus is coming soon to our side of the pond, and the subject of this article -- the spunky little Fiesta -- is a truly world-class runabout."
Weekly Top 3: Why The Ford Fiesta Is A Breath Of Fresh Air
It's a hoot to drive. Seriously. The steering is spot-on -- it's nicely weighted and remarkably responsive to quick inputs. The 1.6-liter four-cylinder engine is sewing-machine smooth (you know, like Honda engines used to be), and it delivers a satisfying high-rpm kick. I had more fun driving the Fiesta than I've ever had in a Honda Fit, which is the perennial fun-to-drive champ in this segment. This car is engaging enough that it might eat into base Mini Cooper sales.
"Ford Motor Company (NYSE: F - News), continuing its rapid quality improvement, surpassed Honda in initial vehicle quality for the first time and reached new levels of customer satisfaction with vehicle quality, a new survey shows.
Ford is also statistically tied with Toyota at the top of the industry when it comes to initial vehicle quality..."
And now the ahem part:
"...according to the 2009 U.S. Global Quality Research System (GQRS) survey conducted quarterly for Ford by RDA Group of Bloomfield Hills, Mich"
Visteon, one of the world's largest auto-parts suppliers, was created from Ford Motor Co. parts operations and employs 31,000 people in 27 countries."
Auto Supplier Visteon Files for Bankruptcy (AutoObserver)