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Ford Motor Company (NYSE: F) now stands alone as the sole American automotive company out of the "big three" that has not filed for bankruptcy. Ford CEO Alan Mulally made moves starting years ago to ensure Ford would dig itself out of many legacy problems, and it paid off. I even chided the man's salary when he was hired. Was he worth it? Sure.With Chrysler nearing bankruptcy exiting under new Fiat ownership, General Motors now enters probably the most challenging period in its entire history. Will both automakers emerge as leaner, more formidable competitors without a slew of legacy employee costs and baggage that has saddled them down? Yes -- and that could spell trouble for Ford. Ford, although in much better shape than its two competitors now under bankruptcy, needs to glean the same relationship (namely, the UAW) with all its partners so as to not be a disadvantage to the only long-term American auto company left. Can it?
Cost reductions will have to continue on a scale equal or more to its nearest domestic competitors as well as any motion to not make it disadvantaged on a global scale soon. Ford's debt outstrips its cash, and GM will have a debt advantage when a portion of the defunct company re-emerges soon as a leaner competitor. Ford has made some wise decisions in the last 18 months to put it in a position of not needing government handouts. What it didn't take could cause problems for Ford as a result. How can it take advantage of this opportunity to take more market share from whatever market exists for new cars and trucks during a recession? Good question.
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Reader Comments (Page 1 of 1)
6-02-2009 @ 4:14PM
attl said...
Ford is a survivor but how competitive it will be to the two new domestic companies and foreign companies may still bury it in the not so long future unless it can improve its debt and labor situation. They need to do it now when they still have some legs to stand on.
6-04-2009 @ 6:21PM
larry said...
GM WILL NEVER RECOVER FROM THE OBAMA IDIOTS THAT ARE TO TAKEOVER GM----BE SAFE AND BUY A FORD------OR A CHINESE HUMMER--------------------------------
6-02-2009 @ 5:31PM
Tricky Dick said...
FORD. HA! Found On Road Disabled. thats what it stands for. Seen better engineering on a tin can..
6-03-2009 @ 4:13AM
divesaw1 said...
Wow! Great article. Nice to see such thorough journalism. Did you actually get paid to write that? I clearly see that you looked at the balance sheet and checked out the major headlines from the blogs. What I do not see is anything more than speculative questions. Not a single answer. Perhaps, in the future, you can at least refer to their communications department? Maybe something as simple as asking the used car detailer at your local Ford dealership so you can "quote a Ford representative"?
I will submit your name to become an honarary staff writer for the NYT.
6-03-2009 @ 7:44AM
Greg said...
Ford Vehicles are now equal to or better than Toyota or Honda in terms of quality and reliability ... "Tricky Dick" - your comments are very 1980's .. perhaps you should take a visit to your nearest Ford showroom and test drive a new Ford Fusion Hybrid? .. it is extremely technologically advanced and delivers the best mpg of any mid size car in the United States ....
6-03-2009 @ 1:17PM
steveherbln said...
2001 F-150, Cruise Control fixed, burned to the ground while driving. Ford said, "TOUGH" Check all the other burned victums FORD said, "TOUGH" to.
http://www.consumeraffairs.com/news04/2007/09/ford_fires_continue.html
6-09-2009 @ 2:47PM
jim_hillmeyer said...
The answer to the question you pose: Simple. Make vehicles that people want. Ford already does that. Still a distance from Jap-vehics --Toyota, Honda manly. But Ford has some nice stuff that people want. And they don't have a bloated lineup of bad models. The F150 is their gravy-train while other things get worked out.
Compared to GM cars and Chrysler 'anythings', Ford IS Toyota!
6-03-2009 @ 7:14PM
Von Holenhead said...
I've owned a lot of GM vehicles, but never a Ford.
In 1998, I bought a used 1996 Ford Ranger.
This truck has gone well beyond my expectations.
The upkeep/maintenance has been minimal.
The four cylinders with eight plugs and the standard five speed transmission has saved me a lot of money. I hope to keep this Ranger until it becomes an antique collectable and pass it along to one of my grandchildren.
Eighty per cent of the trucks I see here are Rangers.
I don't know anyone who doesn't own one and they are all holding onto their Rangers.