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What about the future of Ford Inc??
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Comments
So, Toyota had superior corporate culture, superior engineering process, working class ethics that assumes cooperation instead of confrontation, team spirit from top to down, superior production system and so on, so on. All it adds up to huge competing advantage in global scale. Ford is still alive because always at last moment Ford management makes desperate efforts to catch up or innovate and it lasts may be several years and then Ford returns to its usual ways of making business - one wrong decision after another and management overhaul and then still another attempt to change corporate culture and blame everything on previous management.
Nasser actually had good plans for Ford, at least from product point of view. He was probably a car guy unlike Bill Ford.
Toyota of course was so packed that I could not even get to really look at the cars.
Mazda was also very busy.
Ford Mustang and Shelby Mustang were very busy but the New Ford Edge was competely totally unnoticed. I think part of this was Ford's Fault, The car was on a spinner accross from the Shelby that was drawing all the attention.
I just feel that the Edge is one more instace of Ford being a little late to the market. This is only forgiveable if you come with the best. I guess only time will tell if Ford comes with the best.
Mark.
Dunno about that...Nasser's big strategy was to spend billions on things with only the most tenuous relation to producing good automobiles. When it did come to cars, he was more interested in buying luxury marques than in looking after the Ford name...
Not saying he's a really a car guy, but Bill Ford does own and regularly drive a couple of Mustangs and champions the GT project.
What we have now – Ford Mustang. It is okay. But it does not turn or feel like a modern sport coupe, more like Honda Accord with old tech engine from pick-up. Can you imagine that nobody else uses RWD platforms with live axle anymore? It is cheap though. But it seems Ford resorted to cheap and left anything refined to European divisions.
What are you talking about? All GM trucks and SUVs use live axles still, as does Toyota. We'll see what the new Camaro has.... And, what does the Charger and 300 have? Are they live or IRS? I don't know.
Part of the reason Ford went with the live axle may have been to keep costs down-I doubt it, but the other part of it is it's much better to have a live axle for burnouts. It's hard on the suspension of an IRS and hard to do it. It's part of the package of a Mustang to be able to make tire smoke. They put a ton of engineering into that live axle to make it handle like IRS, and Car & Driver said they frankly couldn't tell the difference.
Rocky
Motor Trend lost all credibility with me naming the Ridgeline "Truck of the Year". And it sits on a unibody platform. AND IT'S FRONT WHEEL DRIVE!! Yea---right!!
Rocky
It all depends. As nvbanker says, it all depends on what you want to do with the vehicle. Mustangs aren't supposed to be refined and European, they're supposed to be coarse and rough...it's part of their charm.
And from someone who was originally skeptical, C&D is spot on: the new Mustang's live axle is so good you can hardly tell that it is a live axle. Unlike with my Mustang (an '02) where every bump reminds you of it...
Simple, effective and cheap...pretty impressive. Would that more U.S. car companies would pursue such things.
I can also make wild guess that 300 and Charger both use IRS. I don't know why I am so sure. May be because suspension design is not Detroit invention but was taken from Mercedes instead.
Big 2 are taking so much effort trying to improve decades old technologies like live axles or pushrod engines instead of making quantum leap to modernity.
Imagine what would happen if Silicon Valley followed Detroit’s route.
The old (until '04 that is) Mustang Cobras had an IRS set-up, and they handle road courses with an aplomb equal to a lot pricier cars. That coupled with a high-reving, deep-breathing V8, and they're the closest thing one can buy to a Boss 302 these days. The upcoming Shelby GT500 should prove even more capable I should think.
"Imagine what would happen if Silicon Valley followed Detroit’s route."
True enough, overall. But performance cars are a bit of a horse of a different color, if you'll excuse the oddly-worded metaphor.
They're about immediacy, emotion and "feel" more than they are about modernity. If they weren't, people wouldn't be paying astronomical prices for 1960s musclecars right now...those things are positively prehistoric.
I'm personally a big fan of low-tech but effective solutions to problems. The Mustang's axle or GM's 5.7 pushrod V8 are perfect examples of things that are dismissed as "antiquated" (even though OHC engines have been around as long as OHV ones), but they do the job admirably well, and in many cases better than their competitors.
Sure, by no means a model for the rest of the company's line-up, but for the few performance models a company offers, why not?
Motor Trend lost all credibility with me naming the Ridgeline "Truck of the Year". And it sits on a unibody platform. AND IT'S FRONT WHEEL DRIVE!! Yea---right!!"
Amen to that, brother!!
The Ridgeline is as much as truck as the Ranchero, El Camino & T-100 were.
Unlike GM, Ford's problem is consistency over time - they have to keep ALL the balls in the air, ALL the time. They have many decent models now, and a reduction in rebates to improve the value quotient of their cars. They are sticking their oldest models (Ranger, Focus, Taurus) with the bulk of their rental fleet sales, so as to protect the newer models.
And they managed all this with only a couple of balls dropped - the non-renewed Focus and Ranger around 2005. If they could pick up those balls without dropping any others, and keep them all in the air for a decade, they would make a tremendous recovery I think. They could sell all the loser PAG brands (except Volvo) to raise the cash for this endeavor.
They don't need flash, they need solid. Solid cars that people can believe in, that they rely on the way they think they can rely on their Toyota. Cars that are a little fun too and surprise their owners in a pleasant way once in a while.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
The Five Hundred's not a total disaster. It's doing decently. I think it just needs a better engine to really shine.
I agree. Once it's get a better engine and front end styling (next year?), it will take-off. Hopefully!
Yeah, it's selling better than the Blackwood, but the great thing is it's making money for Ford, even though it's not a volume car. It costs little to make since it's an F-150 under there. The Blackwood had a ton of unique features that cost a lot to implement.
Big loser...
Rocky
I was at the Autoshow on Sunday, the last day. Ford had a big display on the main floor with a GT500 on a spinner, a GT in gulf heritage colors on a spinner and a Ford Edge on a spinner.
While people were clustered around the 'stang and the GT, there was NO BODY looking at the Edge. I had no problem getting a fee people free photos.
Now take Nissan for instance. They are launching a new "B" segment subcompact this Summer called Versa. Either a 5 door hatch or a 4-door sedan.
Here are a few things you can get on the Versa that are not available on the Focus:
CVT trans.
380 watt sound system.
iPod input jack.
Bluetooth hands free.
Intelligent key (where you keep the fob in your pocket to unlock and start the car).
After looking that these features, I realized that Ford truly DOES NOT understand the American car buyer.
At Ford, small cars are SUPPOSE to be CHEAP, not just inexpensive. I doubt that Ford would ever put Bluetooth, iPod jack, or intelligent key in an entry level car until after every other entry level car had those features.
But think about it, who is more likely to have a Bluetooth phone, or see the iPod as an extension of their existence? A 20 something buying the Versa or the 45 yo buying the Mustang or Edge?
Generation Y will never even consider buying a Ford and why should they?
Nissan has plans for entering the commercial light duty truck market and will start building an F-250 competetor before the end of the decade.
I readily concede at the Nissan Titan is inferior to the F-150 in capacity. However, it greatly surpasses the 2003 F-150. Not bad for a first effort.
I can go on and on and on but its pointless. I think that If Ford does not get in touch with its car customer, the brands days are numbered.
Mark.
I think it's more precise to say that Ford (like its domestic competitors) focuses mainly on short-term profits rather than long term ones. Ford understands the current American car buyer pretty well (not great mind you, but well enough).
Gen Y doesn't in large part have the cash to buy cars for itself yet. It's their parents that are making the purchasing decisions...so that's to whom Ford markets. Hence the success of F-150s and Mustangs.
But when it comes to thinking down a road a little, Ford is usually less than successful and forced to play catch-up. It frequently seems to default to its founder's "you can have any color you want, so long as it's black" view of catering to customer preferences.
Yes, there's supposed to be a Fusion hybrid, this fall, now how about the rest of the models?
Focus makes like 25/32 mpg - how about getting it on par with the rest of the compact cars out there? Everybody else's midsize cars are making the same or better mpg as Ford's little car!
No matter where the market turns, away from SUVs, towards hybrids, whatever, Ford is so often a step behind.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
What EVER, Rocky.... The EXT isn't a real truck. I like the Avalanche and the Escalance, but....they're not real trucks.
It has the Z-71 40 mm Blistein Shocks, Skid Plates, and of course AWD with more horsepower and Torque and it can pull the "all show and no go" King Ranch all over the parking lot. :P
Rocky
The GMC Sierra Denali is however a real truck and I've been lobbying GM to build a 3/4 ton version with a Duramax engine because I know it would be a great competitor to Fords King Ranch.
I'm still waiting for GM to start sending me royalty's for all the good advice I give em'
Rocky
Coincidentally, I bought one of those "Denali" trucks a couple of months ago for an employee. It's a Sierra H3. And you're right, the interior is right out of the Denali/Escalade, as is the AWD system. DAMN nice truck.....
Glad you baught a GM, even though it's used. :P
Rocky
Looks like Ford is getting into the reality Tv business. This might be a good way for them to get a pulse on the American consumer.
I,perosnally, think it might be an interseting show to watch. But then again, I'm an auto geek. (then again, who here isn't?)
:-)
Contestent: "As you can see, I took the last Ford Taurus model and, get this, made it more angular!"
Judge: "Hmmm...it looks a lot like the the first Taurus model."
Contestant: "Yes."
Judge: "We have a winner!"
The company spokesperson says very little except they hope to be back up and running as soon as possible - basically meaningless.
Whether the shutdown is short-lived or winds up hurting Ford, I might venture to guess that this is one of the unfortunate risks of constantly squeezing your suppliers for lower prices on parts with the same specs.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
This might be a stupid question/comment but the current generation F-150 is in its 3rd model year of its current generation so shouldn't have these defective parts been discovered alot sooner than now?
"The company spokesperson says very little except they hope to be back up and running as soon as possible - basically meaningless."
Yeah they are saying very little. I wonder if anybody who owns a current generation F-150 has had repeated cases of transmission lock-up because of these defective parts. I wonder if there will be a recall issued on the current generation F-150's that are on the road(already sold.)
But, as you said, continually squeezing suppliers for lower prices is bound to backfire, and this episode may be "Exhibit A" in that regard.
I wonder if GM offered an extended warranty though on their defective parts sort of like Honda did with their tranny fiasco on last generation (01-02 and some 03)CL's, (00-02 and some 03)TL's, and(98-02)Accord V6's. I think Honda's tranny recall may have afftected 1999 TL's too but I'm not exactly sure on that one. I think the 99 TL's had a four speed auto as opposed too the 00-03 TL's which had a 5 spped auto I think. The Honda tranny recall affected 03 Honda Pilots, 99-03 Honda Oddessy's, as well as 01-02 Acura MDX's I think.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
DETROIT -- Ford Motor Co. plans to resume production at seven idled plants on Monday after fixing a problem that was discovered in its engine transmissions, a spokeswoman for the automaker said Friday.
Ford halted production at the plants late Thursday, idling about 15,000 workers. The plants remained closed Friday while Ford worked with its supplier to pinpoint the problem.
The glitch was identified in a testing of a clutch mechanism in a four-speed, rear-wheel-drive automatic transmission, spokeswoman Anne Marie Gattari said. The mechanism makes the vehicles shift smoothly between first and second gears.
Gattari would not identify the supplier.
Affected Ford vehicles included F-150 pickups, Expedition sport utility vehicles, E-Series vans and buses and the Lincoln Town Car, Gattari said. Ford said no customers have bought the affected vehicles.
"We have no indication that trucks in the hands of customers are affected. At this point we believe we've contained the issue internally," Gattari said.
Three plants were shut down in Michigan, including Dearborn Truck, Michigan Truck and Wixom Assembly, along with plants in Norfolk, Va., Avon Lake, Ohio, and Cuautitlan, Mexico, Gattari said. The truck side of Kansas City Assembly plant in Claycomo, Mo., also was shut down.
Ford will lose a little more than one day of production, since the plants would have been closed Saturday and Sunday. But even one day can be costly for the Dearborn-based automaker.
Greg Gardner, a spokesman Troy-based Harbour Consulting, a manufacturing consulting group, said it's unusual for a company to shut down this many plants at once. But he said if Ford has enough vehicles in its inventory, it should have no problem in getting them to dealerships. Ford had a 107-day inventory of F-Series pickups at the end of March.
JPMorgan auto analyst Himanshu Patel estimated the company produces more than 4,300 vehicles per day at the affected plants. He said the shutdown could cost the automaker $34.4 million per day before taxes.
Gattari wouldn't comment on those figures, but said all production will be made up at a later date. Gattari said the only cost to Ford will be the overtime necessary to make up production. She wouldn't say how much Ford will have to pay in overtime.
"This is not lost production by any means," she said. "We have the capacity to make up the volume and we will."
Ford shares fell 15 cents, or 2.1 percent, to close at $6.95 on the New York Stock Exchange.
------ On the Net: Ford Motor Co.: http://www.ford.com
http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20060429/AUTO01/604290353/- 1148
Ford Motor Co. has stopped production at seven plants, idling about 15,000 workers, after a problem was discovered with a part for engine transmissions, the company said Friday.
The problem was discovered in a testing of a clutch mechanism in a four-speed, rear-wheel-drive automatic transmission, and the company sent night shift workers home three hours early on Thursday, spokeswoman Anne Marie Gattari said.
Day shift and afternoon workers were told to stay home Friday, and it was unclear when production would resume, Gattari said.
Ford shares fell 12 cents, or nearly 2 percent, to $6.98 in Friday morning trading on the New York Stock Exchange.
Affected Ford vehicles include F-150 pickups, Expeditions, E-Series vans and buses, and the Lincoln Town Car, Gattari said. Gattari said Ford believes no customers have bought the affected vehicles.
"We have no indication that trucks in the hands of customers are affected. At this point we believe we've contained the issue internally," Gattari said.
Three plants were shut down in Michigan, including Dearborn Truck, Michigan Truck and Wixom Assembly, along with plants in Norfolk, Va., Avon Lake, Ohio, and Cuautitlan, Mexico, Gattari said. The truck side of Kansas City Assembly plant in Claycomo, Mo., also was shut down.
Gattari said problem was with a component of the clutch mechanism that makes it shift smoothly between first and second gears. She would not identify the supplier, but said the company was working with Ford to fix the problem.
"As a result, we made a decision, the right decision for the customer, to stop production at the affected assembly plants," Gattari said.
JPMorgan auto analyst Himanshu Patel estimated the company produces more than 4,300 vehicles per day at the affected plants, and the shutdown could cost the automaker $34.4 million per day before taxes.
Gattari wouldn't comment on those figures, but said all production will be made up at a later date. Gattari said the only eventual cost to Ford will be the overtime necessary to make up production.
"This is not lost production by any means," she said. "We have the capacity to make up the volume and we will."
Not necessarily. Sometimes suppliers will change materials or find cost cutting measures AFTER they get the contract.
Something similar happened with the Ford Freestyle. The manufacturer of the gas tank straps changed their material after getting the contract from Ford.
Ford did long term testing on the straps and found them failing after 100,000 miles, found out the material was not to spec, and now has to replace all straps on Freestyles.
Not too major because I don't think any Freetsyles have even come close to 100,000 miles and most people can get these changed during their scheduled maintenance.
At leats Ford is proactive in getting these issues fixed.
>Not necessarily. Sometimes suppliers will change materials or find cost cutting measures AFTER they get the contract.
Can you say "Camry 07" transmission problems?"
2014 Malibu 2LT, 2015 Cruze 2LT,
This is a shame because the Ford dealers are about the best, but with so many large gas guzzling vehicles that can't be sold the dealers might fail too.
The main problem is stupid Ford management and stupid labor leaders.
Ford Motor Co. is shifting its marketing approach by lowering sticker prices on several 2007 model vehicles and adding more standard equipment to some cars and trucks.
Like General Motors Corp., Ford is trying to find new ways to reach customers other than fire-sale discounts that hurt resale values.
The changes were outlined in a letter Friday to dealers from Al Giombetti, president of marketing and sales for the Ford, Lincoln and Mercury brands.
Giombetti also told Ford dealers their profit margins will be reduced on some vehicles. The changes will be rolled out over the next few months, though some changes will be immediate.
This morning in Dearborn, for example, Ford will announce it has decided to add more standard equipment on its new Ford Edge crossover vehicle, which debuts this fall. Full side-curtain air bags and roll-stability control will now come standard on the base model.
"Being competitive in today's marketplace requires competitive content and competitive pricing," Giombetti wrote in his letter to dealers, a copy of which was obtained by The Detroit News. "We believe we have an outstanding plan to stabilize and regain sales and market share."
The lower base price makes sense in an era of online comparison shopping. Giombetti said 75 percent of new vehicle buyers use the Internet to price vehicles, but only 15 percent look up what incentives and other discounts are available.
He also noted that other automakers have started adding content to their vehicles with little or no price increases to make their cars and trucks more attractive to consumers.
"In light of this situation, we need to continually evaluate our content and visual pricing," Giombetti said.
GM cited similar concerns when it lowered prices earlier this year. Ford is following suit, at least with its 2007 model vehicles.
Ford will drop the manufacturer's suggested retail price on its Ranger pickup $1,000 for super cab models and $590 for regular cab models. Giombetti said that will make the Ranger the lowest-priced compact pickup on the market today.
Ford is also reducing the MSRP on its Escape Hybrid SUV $1,000 in an effort to shrink the gap between the hybrid and the standard versions of the popular sport utility vehicle.
The company hopes that will encourage more consumers to step up to the hybrid model -- particularly in light of recent tax incentives for hybrid purchasers.
The automaker also plans to add more features to the base model Five Hundred and Freestyle in an effort to make them more attractive to consumers.
While Ford will bear some of these costs itself, it also is reducing the margins on a number of vehicles, meaning that dealer's will absorb some costs.
Not all dealers are happy about that.
"They're putting too much on the dealers," said Kenny Shreve, of Kenny Shreve Ford Mercury Inc, in Mcleansboro, Ill. "We can't structure deals anymore."
Shreve said Ford has already cut margins on many of its vehicles, leaving dealers with less room to negotiate.
"Ford is trying to go to one-price selling," he said. "We all know Saturn tried that, and it didn't work."
But Ford believes its new pricing strategy can be a win for dealers, too.
"The full package of all these changes will improve our business and dealers' business too by creating a better value for the consumer," said Ford spokesman Jim Cain. "Last year, when we adjusted margin on the F-series, we actually saw dealer grosses improve slightly."
Ford also plans similar pricing changes for its Mercury and Lincoln brands.
The new pricing scheme represents a departure from Ford's previous strategy, in which features were gradually stripped from older vehicles to allow for deeper and deeper price cuts. That hurt residual values, which also hurt Ford's brands.
Ford wants to craft a simple pricing strategy where the transaction price more closely matches the vehicle sticker price. The plan also calls for Ford to give its customers more in the way of standard features.
The automaker is doing just that by adding roll-stability control and side-curtain air bags to the Edge. The lack of those features had been seen as a deficiency in an otherwise promising vehicle by several product analysts.
"This vehicle is bold looking, it's a blast to drive and we're not going to go to market with only five bullets in our six-gun," said Cain, who confirmed the changes to the new crossover. "We are looking to make our vehicles a better value for customers, improve residual values and break out of the old business-as-usual mind-set."
Other changes are also in the works.
During the same meeting with dealers, Ford unveiled a new "Bold Moves" advertising campaign, the details of which will be officially announced later today.
As The News reported last week, that campaign features a new slogan and a new Ford anthem performed by Kelly Clarkson that will premier during tonight's airing of "American Idol."
It also includes a series of commercials focused on "everyday people" making some bold moves of their own. Ford is also planning a reality television show that would challenge aspiring designers to come up with a hot new concept car.
"This is not a short-term campaign," Giombetti told dealers. "It is a long-term initiative designed to strengthen our brand, emotionally connect with our customers and make the most out of our marketing activities."
Ford is also encouraging dealers to focus on core vehicles like the F-series pickup, Escape SUV and Fusion sedan in their own advertising.
All Ford dealers will be briefed on the new campaign and new pricing scheme later today.
http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20060502/AUTO01/605020363/- 1148
Ford F-150, Ford is adding a new trim level and adding an even greater number of options. For instance, Ford just created an FX-4 Luxury package. This package basically adds to the FX-4 those items which were previously only available on the Lariat. So why then does Ford need a Lariat? I'm sure that next they will add an "OFF ROAD" package to the Lariat so that a Lariat is exactly like an FX-4
There are so many different stand alone options that it is impossible for any dealer to have exactly what a customer is looking for. This is ESPECIALLY true now that interest are going up and it is costing dealers more to have the big inventories they have been carrying for the past couple of years.
Here is another example. On the Ford Five Hundred, there is no telescoping steering column but there is available adjustable pedals. The key word is available! Why are they not standard? Would anyone NOT buy a car because it had adjustable pedals? Is there any other premium sedan in the mid twenties that DOES NOT have a telescoping steering column standard?
For 2007 Ford is dropping the SE trim in the 500. Ok, this sounds good. Now here is the catch, on the SEL they are TAKING OUT all of the equipment that was an upgrade to the SE (mainly just climate control and 6 disc cd) and adding that to a package.
Is there any other mid twenties sedan sold in this country WITHOUT auto climate control?
Another example on the 2006 Ford F-150 XLT you can get a Tow and Go discount package. Basically Ford discounts on the window sticker the 5.4L engine and the tow package. This is worth $1295. The problem is that they BUILD a TON of trucks with the 4.6L and force dealers to take them. This MAKES NO SENSE! The 5.4L has no real fuel econ difference from the 4.6 either so there is no reason NOT TO GET the 5.4!
Yet if you are some poor smuck who doesn't competitive shop you may never run across one of the trucks with the tow and go package. You end up with an inferior truck through no real fault of your own.
HOW IS THAT building the loyalty of repeat customers?
Don't even ask about the Mustang. For 2007, there will be FIVE different interior trim combos! How is that making things less complicated?
What I want to know, is how can Nissan afford to build the new Versia for around $15,000 in Mexico with things like STANDARD SIDE CURTAIN airbags, BLUETOOTH integration, choice of SIRIUS or XM radio, iPod jack and intelligent key?
Ford doesn't currently offer iPod integration (debuts in 07 Mustang), Bluetooth (not availabe in any 07), or Intelligent key (may show in 07 Edge). AT ANY LEVEL for 06 yet in 07, these options will be avaiable in EVERY NISSAN!
The execs at Ford just sit around a table in Detriot reading the bullcrap put together by their underlings who are writing what they think their bosses want to hear.
This organization is competely screwed up and everyone making decisions is completely removed from reality.
Mark