Ford Motor Company Discussion(update on Toyota,Aston,Jaguar)

[a6m5]

I ran into an article today that contained multiple news regarding Ford, and rather than breaking it up, I thought it might be better to have one big Ford thread. As most of the guys in the "Auto News" Forum knows, Ford is in a very deep hole right now, and a lot of changes and news are coming in this restructuring.

So this thread is for posting and discussing on any topic regarding the Ford Motor Company, the corporation itself.

And here's the article I saw(this is the whole thing). It's a few days old, but there are information I hadn't yet seen regarding the Alliance with Toyota, UAW, Aston Martin & Jaguar, and their forecast for 2007:

January 4 2007: 7:32 AM EST


NEW YORK (CNNMoney.com) -- Ford CEO Alan Mulally said the company needs painful concessions from the United Auto Workers union, but not an alliance with rival Toyota Motor, to complete its turnaround efforts, according to published reports.

Mulally, who spoke with journalists Wednesday at a dinner in Detroit, said he meets weekly with UAW President Ron Gettelfinger in advance of contract talks later this year.

"I respect the union as an institution. (But) the only thing I care about is the competitiveness of Ford," Mulally said in a Detroit News report. He said that the union chief has been cooperative in talks so far.

"Ron Gettelfinger absolutely understands the situation we're in I don't know of anybody that cares more about Ford than Ron Gettelfinger," Mulally said in the News report. "On everything that we've asked him to do to help us restructure, he's supported us."

Just after Mulally started at Ford in September, the union and Ford agreed to pension and buyout offers to the entire U.S. hourly workforce as part of Ford's plans to close plants and slash capacity. About 38,000 of the 75,000 UAW members at Ford agreed to accept those offers to leave the company.

The current union pacts between the union and the Big Three automakers - Ford (Charts), General Motors (Charts) and DaimlerChrysler's (Charts) Chrysler Group, expire in September.

Mulally had praise for the operations of Toyota Motor (Charts). He traveled to Tokyo late last month to meet with Toyota Chairman Fujio Cho. But he repeated the company's statement after the meeting was reported that he is not discussing a specific alliance with the Japanese automaker.

"We're always looking for opportunities to collaborate on all levels," Mulally said in a Reuters report, pointing to issues such as advanced technology and the regulatory environment. "I really want to connect with each of the manufacturers and want to do it quickly, because we have so many things in common that we have to deal with." He said he's also met with executives at GM and DaimlerChrysler since he was tapped as CEO of Ford in September, leaving a position heading the commercial jet unit at Boeing (Charts).

Ford's extreme makeover

Ford announced in September that its target is now to return its core North American automotive operations to profitability by 2009, and Mulally said Wednesday it is on track to do that.

Ford also said in September it intended to roll out new models for 70 percent of its vehicle lineup by 2008. The Detroit Free Press reported that Mulally said Wednesday the company expects to meet that target and it is now looking to turn over 100 percent of its lineup by the end of the decade.

Mulally also told reporters that previously announced plans to sell the Aston-Martin luxury sports car unit should be completed this year. And he would not rule out the sale of the money-losing Jaguar brand as well.

Ford announced Wednesday that U.S. sales fell 13 percent in December from a year earlier, leaving the company's sales down 8 percent for the full year. Its U.S. market share fell 17.5 percent from 18.6 percent.

Ford has said its market share will fall further in 2007 to the 14 to 15 percent range, which will likely leave it behind Toyota in U.S. market share for the first time for a full year. Toyota's share came in at 15.4 percent in 2006, and it is seeing growing sales. Ford finished behind Toyota in sales in most months since the 2007 models were introduced this fall, including December.

http://money.cnn.com/2007/01/04/news/companies/ford_outlook/index.htm

 

[YSSMAN]

Well pretty much know what I'm going to say about Ford in most cases. They aren't giving Americans the products that they deserve, and the heads of the company seem to be steering the company blindly, without any solid direction behind any of the little subsidiaries. Should I go through the brands?

- Ford: The Ford we know now is such a mish-mosh of good and bad ideas that I have an extremely hard time liking the company. You get absolutely stellar products like the Fusion and the Mustang, mediocre products like the Freestyle and Edge, and the crap-tastic models like the Focus, Fivehundred and their truck line. Fords decision to not import their European-spec models has been a hot debate with me and a few other folks, and IMO it continues to be their biggest hurdle to jump, selling the better products to Americans.

...How to fix? Give us the cars we want, build us a RWD-sedan, and pull a GM with the truck line.

- Mercury: Well, given that they are the "pretty" versions of Ford models, the best things they've got going for them is the Milan... Thats about it...

...How to fix? Maybe get some of their own products for once?

- Lincoln: I share many of the same feelings for Lincoln as I do with Ford. With the odd product ideas of the past few years, I have no idea what they are planning to do in the near future. The MKS won't live up to the standards set by the STS in America, cars like the 5-series and E-class in Europe. The MKZ is an over-glorified Mazda 6 and everyone knows it, but at least they are relatively good-looking. Same goes for the MKX, however at least it seems like a reasonable idea against the Buick Enclave or something similar. The Lincoln SUV line is a mess, the pickup truck idea was stupid, and there isn't any way around that.

...How to fix? Lincoln returns to rear-wheel-drive with the MKR, brings back some of the classic names (Continental would be a good one to keep), and drops the truck line altogether. It isn't helping their sales, they may as well just let Cadillac take it.

- Mazda: One of the better brands in Ford's inner circle, I can't complain about them too much. They do almost everything "right," hitting the sweet-spot between comfort and sport with almost every vehicle. I wish the Mazda 5 would do better, and I hope for the best with the CX7, but otherwise no complaints.

...How to fix? Nothing needs to be fixed...

- Volvo: Coming off a disappointing sales year, people wonder whats wrong with Volvo. I don't have a clue. They build some awesome cars and trucks, and there aren't a whole lot of improvements that need to be done. The XC90 needs a refresh I suppose, and they are adding a new mid-sized crossover, beyond that, an update of the S60 may be needed as well. Overall, they do it right, and deserve more attention.

...How to fix? I guess if they could sell the C30 in America without the T5 that would be good to bring in more "value" shoppers, particularly those who are young.

- Jaguar: I think with Jaguar you are going to get a lot of differing opinions on how things should be done. What is most obvious is that the X-Type needs to die, or at least be significantly updated. The CX-F is a HUGE step forward for Jaguar and their design team, and it will be interesting to see how the design language translates into the larger XJ (I don't want it to change, personally...) and maybe the lower X-Type. The XK is magnificent, and I don't think that is debatable.

...How to fix? I want the XJ V6 sold in America, and some diesel products would be nice, but that probably won't happen.

- Land Rover: Meh. Nothing too good or bad here, really don't even need to be covered.

...How to fix? Maybe do a new Defender?

- Aston Martin: As the most troubled brand in terms of having a future at FoMoCo, this is probably where the most debate will come from. Aston Martin is one of those brands that likes to have a few good years, a few bad ones, and then proceed to cycle in and out of the sports car world. Simply but, the Vantage and the DB9 are brilliant, and truly have brought back a lot of glory not only to the company, but to UK car building on the whole. Sadly however they have pretty much left the Vanquish to die, and it is really questionable how they are going to handle the car in the near-future. But if Aston does go to private hands, it will be interesting to see how the company evolves. They seem to have had some good luck under the wings of FoMoCo, and I'm hoping it stays that way in the near-future.

- How to fix? Keep them at Ford, please!!!

 

[harrytuttle]

I had a couple of ideas, but someone beat me to them....

- Volvo: Coming off a disappointing sales year, people wonder whats wrong with Volvo. I don't have a clue. They build some awesome cars and trucks, and there aren't a whole lot of improvements that need to be done. The XC90 needs a refresh I suppose, and they are adding a new mid-sized crossover, beyond that, an update of the S60 may be needed as well. Overall, they do it right, and deserve more attention.

...How to fix? I guess if they could sell the C30 in America without the T5 that would be good to bring in more "value" shoppers, particularly those who are young.

I don't know what's wrong with Volvo, but I get the feeling that they're percieved as being too stodgy, too suffy. Like old-school Jaguar (which is why the X-Type tanked). The C30 is different enough, and definitely youth-oriented (if 20+ can be considered "youth"), although a cheaper entry-level model couldn't hurt (as you said...).

- Jaguar: I think with Jaguar you are going to get a lot of differing opinions on how things should be done. What is most obvious is that the X-Type needs to die, or at least be significantly updated. The CX-F is a HUGE step forward for Jaguar and their design team, and it will be interesting to see how the design language translates into the larger XJ (I don't want it to change, personally...) and maybe the lower X-Type. The XK is magnificent, and I don't think that is debatable.

...How to fix? I want the XJ V6 sold in America, and some diesel products would be nice, but that probably won't happen.

It's too early to tell if the new XK will do anything positive for Jaguar, but it seems to be. I think they should stay upmarket. The XJ could do with a bit of a re-design, but only after we see how the CX-F turns out.

- Aston Martin: As the most troubled brand in terms of having a future at FoMoCo, this is probably where the most debate will come from. Aston Martin is one of those brands that likes to have a few good years, a few bad ones, and then proceed to cycle in and out of the sports car world. Simply but, the Vantage and the DB9 are brilliant, and truly have brought back a lot of glory not only to the company, but to UK car building on the whole. Sadly however they have pretty much left the Vanquish to die, and it is really questionable how they are going to handle the car in the near-future. But if Aston does go to private hands, it will be interesting to see how the company evolves. They seem to have had some good luck under the wings of FoMoCo, and I'm hoping it stays that way in the near-future.

- How to fix? Keep them at Ford, please!!!

I see nothing wrong with selling Aston Martin. They are doing very well, and they do have great products. But they are stifiling Jaguar (at least at the coupe end). Jaguar needs to be freed up to move upmarket, and keeping Aston Martin pins Jaguar between Lincoln and AM. It would be tough to let AM go, and I don't know of any suitable owner, nor do I think they could really survive without the great backing they've had from Ford. So it's either sell Jaguar or sell AM, or watch both slowly die under a cost-cutting Ford.

 

[niky]

Nothing new. I'd give it a year or two to see if Mullaly can do what he says he can. Sad for Aston, but not unexpected... even sadder for Jaguar... the baggage that Ford has unwittingly (and witlessly) laid on them by dragging them so far downmarket with the X-Type will affect the brand's image for years to come... It'll take someone fairly dedicated to traditional Jaguar values to bring the brand back up.

 

[niky]

RE: I took too long to respond... but some thoughts on your thoughts.

Aston's sale, like harry says, ain't such a bad thing. They're doing well in terms of motorsports, have really terrific looking cars with their current design language, and there are some nice cars in the works. They'll be okay, although whoever buys them really has to work on reliability and electronics.

Yes, they are stifling Jaguar, and keeping it from staying upmarket enough to ensure survivability. Jaguar is doing well technology-wise, but they've been suffering from an identity crisis for so long, under Ford, that it'll take many years to clear things up. Yes, we all know the X-Type was a terrible idea... Jaguar and Ford both have the same road ahead of them... they need to both refocus on quality and perceived quality, and distance themselves from the volume-volume-volume mentality that has proven to be their shared downfall.

EDIT: Volvo? They're a competent player, with competent products... but they're in a very crowded market, filled with flashy new Beemers and a strong, surging Audi. The design language has been a major focus for Volvo, and it helped boost them to where they are now, but it's finally time for them to move on. Having everything look like a 90's S60 doesn't really help lure new buyers in, and the current over-emphasis on design-branding is surely hurting them. BMW and Audi shifted from very successful designs to new, controversial ones, and it has paid dividends in sales. Sometimes, the perception of change is just as important as change itself.

Also, the fact that strict new crash regulations force everyone to be just as "safe" or "safer" than Volvo kind of hurt their "safest cars in the world" mantra. They really do need a new focus in that direction, too.

Lincoln? Mercury? Is there even a future for these brands? Ford is wasting a hell of a lot of money housing four versions of the Mazda6 under four different roofs... and it's not good for the Mazda6, either (it's about due for an update, anyway). Platform sharing is one thing, but plagiarism is hard to respect. I'd rather see the Fusion sold in three different trim levels than have all this badge-slappery going on.

Lincoln and Mercury have to go. Mercury first, maybe. Lincoln could live on as an Infiniti type brand, but only if Ford really wants it. Posh rebadges don't really help it stand out from the crowd. Deep six the rebadged FF-derived platforms and go with a new LS or something, anything, based off the Mustang architecture to keep costs down. And dump the damn alphanumerics, please... Lincoln is a storied brand, and it deserves romantic naming.

 

[a6m5]

I was bit surprised to see Ford trying to part with both the Jaguar and Aston Martin. But the most shocking to me was their expected market share in 2007. At least, I'm glad that even they aren't buying the updates they are making on their Focus, Five Hundred, Freestyle, etc., and their SUVs, too. Old cars with new faces, mostly. Along with the market share, I'd imagine that profit margin should suffer as well. Most of the Ford lineup's would be pretty easy to haggle for better deals.

On Volvo, I think they tried to be what they are not. While I also think that Volvo cars are very attractive, 1) they just don't do it for most people. 2)they are too much like BMWs and Audis.

While their cars look great, for sport/luxury sedan in the Volvo's price range, everybody'd seem to opt for German, Japanese or American cars. Also, Volvo used to be known for safety and reliability. I doubt they have the edge in either department in the car market, today.