Sign in to follow this  
ehaase

Analysts Worried About Ford

20 posts in this topic

Could Chrysler outlast Ford, at least in North America?

http://www.thecarconnection.com/pf/Auto_Ne...173.A11943.html

Analysts Worried about Ford

Company may need more dramatic cuts.

by Joseph Szczesny (2007-02-21)

The continuing decline in Ford Motor Co.'s market share has triggered another dire warning that the company in on the brink of a crisis.

Ford also acknowledged this week the company buyout of salaried personnel was oversubscribed in some departments, which means more than 8000 salaried personnel have agreed to leave the struggling automaker, which lost $10.7 billion last year.

Sean McAlinden, chief economist at the Center for Automotive Research (CAR) inAnn Arbor, Mich., said the decline in the company's market share could push Ford to ask the United Auto Workers (UAW) to accept reduced pay and benefits. Ford could ask that UAW wages and benefits be cut as much as 20 percent this summer, he suggested.

Ford also will have to identify at least seven more plants that it will have to close in North America by mid-summer before the contract expires, he predicted. The current labor agreement expires in mid-September.

Marcey Evans, Ford spokeswoman, said it would be premature to discuss Ford's bargaining objectives for the upcoming negotiations. "I can't comment," she said.

Only last week, DaimlerChrysler announced plans to slash 13,000 jobs at its Chrysler Group. McAlinden estimated that the union's membership at General Motors, Ford, and Chrysler have been cut by 40 percent as the automakers struggle with rising gasoline prices, foreign competition, and unfashionable product lines.

The 20-percent wage and benefit cut would save Ford between $1.4 billion and $2 billion annually and would protect the company from running out of cash reserves, he said. GM and Chrysler would wind up pressuring the union for similar cuts, he said.

"If Ford's market share falls to 10 or 12 percent by this summer, and if they start to burn cash at twice the rate they've planned, something will have to be done,'' McAlinden said. Ford's market share was hovering at 15 percent in January.

McAlinden said a declining pickup truck market is partly to blame, with Ford seeing heavy competition against its F-Series, the top-selling vehicle in America. If truck sales continue to decline and competitors such as GM and Toyota offer rebates, "they could get killed," McAlinden said. MORE--

"Really worried about Ford"

"We're really, really worried about Ford,'' McAlinden said during a presentation to a group of investment bankers, journalists, and human resources managers.

Tom Hoyt, Ford spokesman, said the company believes it has enough money to complete its turnaround plan. The plan calls for Ford's North American operations to regain profitability by 2009.

Roger Kerson, UAW spokesman, declined to comment on McAlinden's remarks. "We're not going to get into a back and forth on this," he said. However, union leaders have been meeting regularly with Ford senior management in an effort to help bolster the company.

Workers at Ford have been talking about the coming demands for deep pay cuts, McAlinden said. They would be temporary and would ramp back up, he said.

Since last August, the company and union have negotiated modern operating agreements at 33 different Ford plants. The concessions are valuable because they could cut Ford's labor costs by as much as $190 per vehicle, McAlinden said.

McAlinden showed a slide indicating that Ford spent $3227 for every vehicle it built in North America last year, including $2592 per vehicle for wages and health care for active workers, and $635 for retiree health care.

GM last year spent $3289 per North American-built vehicle on labor, McAlinden said, including $2339 per vehicle for wages and health care for active workers, and $950 for retiree health care, according to the slides

In 2006, Ford, the world's third-largest automaker, lost a record $12.7 billion last year on plunging sales of pickups and sport-utility vehicles. The company doesn't expect to post a profit again until 2009.

Share this post


Link to post
Share on other sites

Um...wow. Anyone else feel better about GM? Or even that we're standing at the precipice of a monumental change in the automotive industry?

Share this post


Link to post
Share on other sites

Perhaps GM will have to buy Ford after Chrysler, and then T900 NG will consist of the F-150, Ram, Silverado, and Sierra, as well as Tahoe, Yukon/XL, Suburban, Expedition/EL, Durango, and Avalanche :rolleyes:

Share this post


Link to post
Share on other sites

Ford could save millions if the focus groups leaves the company.

And the vehicles would probably look better coming out of the gate..

Share this post


Link to post
Share on other sites

What a remarkable catastrophe for Ford. Just a few years ago they were riding huge profits and were nearing on surpassing GM as #1... now they are barely afloat, their lineup largely sucks and future products don't look like they will help that much.

Share this post


Link to post
Share on other sites

Ford could easily start a turnaround for itself simply by BUILDING THE CONCEPTS THEY HAD AT THE AUTO SHOW.

But no, like it always has been, Ford is afraid of trying anything new. The Interceptor, the MKR...we'd all agree those are products that could help Ford out a lot. I bet in the off chance that they'd build the Airstream, it'd be a sales hit, too.

Good new product is going to save Ford, not renaming the 500 and Montego.

Share this post


Link to post
Share on other sites

What a remarkable catastrophe for Ford. Just a few years ago they were riding huge profits and were nearing on surpassing GM as #1... now they are barely afloat, their lineup largely sucks and future products don't look like they will help that much.

does this guy even look like he knows what he is doing?

Posted Image

Posted Image

good thing i learned how to sleep with my eyes open. maybe i can spruce up the roof of the glass house with some trees. or get some glamour shots taken in grandpas truck. yea, thats what ill do.

Posted Image

Alan: wow. i have no idea how bad im f8cked

Bill:dont look at me. Its this guy now. He doesnt even really know how bad he is f8cked.

Posted Image

alan, i can tell you dont have a gun in there but i do. so just stand there, look nice shut up do what i tell you and everything will be fine.

Edited by Mr.Krinkle

Share this post


Link to post
Share on other sites

I'm laughing at the picture responses, yet at the same time i'm wanting to go kick some ass at FoMoCo. I mean, geeze, don't they listen to the consumer at all? GM is getting it done, so why can't Ford? <_<

Share this post


Link to post
Share on other sites
Guys like how we said about GM couple of years ago to be patient. I think we should be patient about Ford-Mullaly too. Although unfortunately I cannot say that for Chrysler. They need to get rid of Jag. British automobiles manufacturers are like bad vibes. They themselves are dead and who ever they go to seem to die. ;)

Share this post


Link to post
Share on other sites

LMAO!!!

What about kick his ass THEN eat his brain?

That would work.

Seriously, if a voodoo witch doctor actually resurrected Henry Ford...well, I don't care how much havok he wreaks around FoMoCo HQ, it'd still be cool as hell.

He'd be kicking down doors and yelling at engineers until they cry...eating brains...it'd be awesome.

No one would be worried about Ford if he were back on the job, that's for sure.

Edited by AxelTheRed

Share this post


Link to post
Share on other sites

GM is looking the best, hmm this is funny. Not for the American auto industry but for GM it is, they were the first to realize they were f*cked if they kept doing what they were!

Share this post


Link to post
Share on other sites

Posted Image

Have you drivin a Ford...

Into the ground...

LATELY?

Oh shucks granpa Henry - I have!

If not for his last name that guy would be lucky if he could clear $100K a year in real life.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoticons maximum are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this