guionM

This is the 1st positive thing I've written about Ford's situation in months. Nothing would make me happier than to have my doom & gloom outlook on the company be proven wrong. However, instead of saying 100% sell your Ford stocks now, I'd say maybe 90% surely you should sell em if you got em. Pretty good jump.

This post is a combination of info from last Friday's list of Ford announcements, old news, and a few factual things I added.

Ford's hurting because the F series got hit hard, and Ford depended disproportionately on sales of their large trucks & SUVs. Ford is accelerating plans that were to take till 2012 down to having them in place by 2008.

Even though Ford has about as much money as GM, and are a smaller company, Ford's business model is more centered around trucks than anyone else. Chrysler is more truck dependant, but their LX cars and their fully stocked product pipeline and the fact they did massive employee cuts years ago means Chrysler is in far better shape than Ford. GM has a comparatively broad vehicle base. They are even making money on the Cobalt... something they couldn't do with the Cavalier.

Irony Alert: Even though the hit on Ford's trucks are draging down the company, Ford actually INCREASED the market share of their truck this year as of August 31st!

(The whole segment declined much steeper than Ford's truck sales did)


Also....

There's a posibility that Ranger's replacement might be imported from..... Thailand.

Ford finally coughed up cash to restyle Focus. It's going to have new sheetmetal and interior for 2008.

The Five Hundred gets a Fusion grille and new taillights. There's also supposed to be a more powerful V6.

Word is that Fusion will get a manual for 2008.

Ford will make the new Mustang Bullitt for 2008. This one comes from Mark Fields himself.

Ford will produce a new Mustang variant every year till the revised one comes out.

Ford will not be selling Jaguar.

The MKS will be AWD. None will be sold as FWD.

The Town Car will now continue afterall.



The story behind the Town Car flip-flop is a disturbing look at the mindset of who and how decisions are being made at Ford.

"Some" people (don't know who) felt that Ford could save money by not moving the Town Car assembly to the Ontario plant that makes the Crown Vic and the Grand Marquis. They judged it too expensive, and that was that.

Apparently, Mark Fields (to his credit) either took a look at or had someone else take a look at the moving costs and what the Town Car was pulling in, and overruled the decision.

In and of itself, it's a gaffe that didn't go far. But in conjunction with all the other cuts in engineering and such, I get an uneasy feeling that Ford's management is aggrivating their lack of investment in great new products all these years by ill thought out cuts. Keeping the Town Car is a no brainer IMO.


2008 is shaping up to be Ford's year. New models, "Way Forward 2" should be done, workforce cuts & dealer bailing out should be finished. 2007 should be an intresting year.

MarcR94v6

From boring to "eh"...impressive! =P.

Chuck!

Just out of curiousity, if the 500 will look like the Fusion, why have both?

OctaneZ28

Keeping the Town Car is the first good decision Lincoln has made in 5 years.

I wonder how much longer it'll stick around, and with what changes.

F1GT

Some good news about Ford, finally.

Who is the guy from Boeing that is supposed to take over and did he yet? Pardon my ignorance, but I pay more attention to GM

CamaroBoy96Z28

Alan Mullaly and yes about a week or 2 ago.

grossesexy

I have to agree. Ford seems to be where GM was several years ago.

2K1SunsetSS

Also:
Next year refresh models:
500
the mecury version
and freestyle

08-09
all new f150
new focus
couple new ford crossovers

The new super duties will also be shown in 2 weeks or less.

Z28x

These are all great moves. MKS should be offered with a V8, but at least there will be no FWD versions

Every car should be treated like the Mustang. Mustang will do good because Ford CARES about that car.

Fusion manual will help grab some youth sales

ProudPony

OK - buckle-up, long post ahead!

Of the American car companies, I personally think Ford has been the most dynamic of them all over the last 20 years or more. GM - while capable of extraordinary things - is a behemoth... it's like turning a ship around with a paddle sometimes. Dodge/Chrysler were under rule from 6000 miles away and a completely different B.O.D. for the first several years after Daimler-Benz bought them out... only in the last few years have they been able to break the stigma of ultra-conservative German dictation, and their new-found liberality is really showing in cars like the Magnum, 300, Charger, and Challenger.

But during those same times, Ford was out in their own pasture... creating such things as SVO, SVT, the Cobra, the Lightning and such. They tried "importing refinement" in cars like the Merkur XR4Ti, the Contour, etc. They experimented with the LSC packages (which I love BTW). They brought out unique designs like the Taurus, and even crammed a 225hp V6 in it with a manual tranny when most V6's barely broke 100hp. They have always offered "specialty" units in just about every model, from the Nite and NASCAR F150 trucks to Splash and Edge Rangers to SHO Taurus' and SC Thunderbirds.
My point is that they have been a company that not only offered some cool things, but typically brought about these "cool items" in a short amount of time, with minimal bureaucracy, and in a pretty economical manner relative to existing parts and option bins on the assembly line.

What blows me away is how Ford - with everything going their way in 2002/2003, has literally stood by and pissed it all away in just 36 months.
They blew it all out going for their 100th birthday, then turned off the lights and went to sleep for 2 years to sleep off the hangover I guess.
Seriously, I have to say that in retrospect, I think I have seen some of the WORST decisions made in the last 24 months that I have ever seen made at Ford. I can't hang them all on Bill himself, but he gets his fair share.

1) I've seen innovation and new technology creation at Ford simply STOP. Well duh... in this age of high-tech gadgetry and information, WHY DO YOU STOP BRINGING NEW TECH TO THE PRODUCT!?!? Ipod holders and integrated audio inputs for your stereo system - duh. Integrated cellular and internet access - duh. Bluetooth - duh. Even if some don't want this stuff, there are many who do, and most are young buyers... the ones you might get to sell 20 more cars to before they die.
2) I've seen the passion for design wain at Ford in the last 24 months - big time. What happened Mays? Before I blame him, I want to know if he had his wings clipped by beancounters, or is crap coming out now purely his doing over the last 24 months? I sure hope not - I gave him FAR more credit than this. Hopefully he can help more in Europe instead of screwing-up their nice designs like the Mondeo and EuroFocus. As for what has been coming out on the US show circuit for the last 2 years... something BETTER change! Bring back the spice that was 2 to 4 years ago (not the same cars, but the zest and excitement they brought by being different) with the FortyNine, the Bronco, the 427, the GR1, the Daisy Project, and such. For heaven's sake, show us a new Cougar (from the DC2), a Falcon (from Oz), a Ranchero (also from Oz), and bring out some revolutionary new concept vehicles with multi-fuel capability, fuel management systems, and HMI systems.
3) Put a little effort into the good things that are already here. Guy's point with the Town Car is one such unit. These cars are a hallmark of Lincoln... they are great for stretching into Limos, making hearses, and such. They are also the dream car of many a traditional baby-boomer... hey, sales are sales - don't give up any these days! In addition to the Town Car, put some money into the Lincoln LS and go after the BMW and Mercedes crowd again. A reskin, updated interior, and some new dash-goodies will make the LS a competitor again. Throw in some drivetrain and suspension refinements, and try to get the unit price down by 10% on the lot, and this car would REALLY go like crazy. I've already made a case for the Marauder's return in a more torquey suit.
4) Lastly, break out of the friggin box! Bring the Ka over here NOW - beat D/C to the punch. They are bringing the Smart here soon, so beat them to the micro-car market with something you already have. Not only that, but accelerate the diesel and hybrid programs for cars that they apply to, like the Focus and the Fusion. Personally, I think a modern TDI with a 6-spd auto would be a killer package in the Fusion Limited - it would be like a Mercedes E-class, but starting about $10k less. My point here is to stop waiting for someone else to do it first, then come to the game as an "also-ran".

IMO, Ford needs to stop with the ultra-conservative approach to getting profitable. You can not "save yourself into profitablility". You need to sell product. Today, more than ever, people want something different, individual to themselves, exclusive, unique, technologically advanced, kind to the environment, economical, and, well, interesting. Sure it's a big bill to fill, but it is being done by other companies... cripes, where the hell did Hyundai and Kia come from in the last 5 years?!?!

Personally, I am not selling my Ford stock just yet. I rode it down from $9 last week, and I think it will be back up there again soon. If they have indeed got the right people in the right places now, I think they will be OK. I'd like to see some of the creative, innovative positions either left alone or even re-filled with designers and engineers - I personally fail to see how you can move forward without creating new product, and without the creative minds and problem-solvers behind them, Ford will have a challenge in this area. Otherwise, it sounds like Mark Fields and the American Team are finally listening to some people who BUY CARS instead of the Wall Street Journal.
(I hate it when investors try to run a manufacturing business... especially one in which they have no interest in the product whatsoever, it's all about the $$$. )

Good Ph.D

Because the 500 is 50% bigger.

A better question is... Why take the best selling car in America and replace it with two... One bigger, one smaller...

I think Ford can turn around if they get their collective head out of their collective *** now.

All the things mentioned above aren't rocket science, they just need to throw more money and flavor at the bread and butter cars. Focus, Fusion, 500, Kill some of the clones, and get some more competent up market cars out.

jrp4uc

Are you sure Focus isn't just adopting the Fusion front end as seen here?




http://www.edmunds.com/insideline/do...leId=100728682

Omegalock

The MKS might not NEED a V8.

It's getting the Duratec 35 right? That engine was designed with turbo charging in mind as a possibility right? A built turbo charged Duratec 35 with direct injection ~330-340 ish horsepower with AWD would be a NICE car. Every definition of a hot rod Lincoln still.

Good Ph.D

Thats not a Hot Rod Lincoln thats an Acura RL. Anywhoo.

FI was suggested for MKS but Im not convinced it will happen unless Ford is serious about not sucking. Im not sure they are yet.

flowmotion

Wow guionM, two weeks ago Ford was doomed, and now they've already turned it around

It's great the Town Car will be around for a few more years, but it doesn't have much, if any, bearing on FoMoCo's future. It's still an ancient car that will likely be killed without replacement.

Meanwhile, all the basics about Ford are unchanged:
+ They have two excellent car platforms with Fusion and 500 -- they just need to figure out how to get sales volume up, especially with the 500.
+ Crossovers are still coming. They needed them yesterday, but they're coming.
+ Focus still needs help badly
+ Ford still needs to figure out what to do with Lincoln and PAG.