[Frost__2001]

Ford relying on new models, cost cuts to get through tough economic times
November 14, 2008
Source: Leftlanenews.

The economic collapse is forcing the Detroit Three to rethink their business plans, but Ford’s management is taking the company in a completely different direction than that of General Motors and Chrysler. Whereas the other Detroit automakers are slashing product development plans, Ford is actually fast tracking several new models in order to ensure the Blue Oval’s survival.

Although new product programs require huge amounts of cash, Ford sees the continued development of its product line as the only way to stay afloat in today’s highly competitive market. “We’re only going to be in business if we create products that people really do want and value,” Ford CEO Alan Mulally told The Detroit News. “This is the essence of creating a viable Ford.”

GM and Chrysler are taking the opposite approach and have already delayed or cancelled several product plans.

It remains to be seen if Ford’s strategy will be enough to save the company, but Ford’s management team is adamant that new products are the only way to ensure Ford’s survival. Mulally has been holding daily meetings with Ford executives from around the globe for several weeks to see where money could be freed up for new vehicle plans, with seven-day work weeks becoming the norm. So far only one vehicle has been delayed — a European crossover that has yet to be announced — thanks to cost cuts in areas such as advertising and executive bonuses.

In addition to setting the foundation for future Ford models, Mulally believes the progress that has been made will also make Ford a more attractive option for government aid. “Whoever is going to invest or loan us money wants to know we’re taking the actions to create a viable company going forward,” he said. “We are absolutely taking the appropriate actions.”

Ford’s current plans don’t rely on any help from the government, making the Blue Oval the frontrunner to survive these tough times.

[Drivesthebeast]

I think Ford IS going to survive the current market. They will finally have true-global platforms and will have product superior to anything they have had before. Overhauling the Focus to bring it back into the mainstream will help, as will continued sales of the Escape/Mariner/Tribute, continued success with the Fusion and it's not-so-distant remodel (looking like it won't be a reverse-style remodel like they did with the Focus either...sorry to those of you that have new ones), and other vehicles like the Flex. Vehicles like the Edge (as great a vehicle that it actually is), don't seem to be doing very well outside of major urban centres as far as sales go.

I think that Mullaly seems to have the right plan of action, and seems determined to shatter Ford's Status Quo's...

[NOS2Go4Me]

They're putting a lot of new vehicle dev into urban stuff, but that's where the majority of their sales come from. Rural folk drive big SUVs and 1/2 tons... which Ford excels in with the F-150 and up.

It makes sense... it's also the main reason I bought another Ford... cause Ford was the only one of the three "domestic" brands that had a small SUV done right.

[Drivesthebeast]

I was looking at several different vehicles, and I was almost ready to buy a couple of vehicles from different brands, but my wife said she rather liked the Escape...

The Escape has always been my #1 choice in terms of a small truck/SUV. Decent power for an older engine, decent looking (dare I say, more masculine than a CR-V or Rav4? lol), nicely appointed interiors, great factory stereo, good track record for reliability, etc.

As NOS said, the Escape is one of the vehicles that Ford has done right since day 1, and have only built a stronger reputation on them since (I mean, c'mon, it's the best selling/most popular small SUV on the planet).

I hope that the Big 3 are going to last...it'd be a real shame if they didn't, and I hope that Ford will be the first to make it...

[reldridge]

Ford will make it, due to the strength of the small car lines and the willingness to evolve (and survive). Ford is also much stronger in other markets (Europe, Australia, South America, Asia) than Chrysler and GM. GM does have Vauxhaul/Opel in Europe, Holden in Australia and Buick in China, but Chrysler has nothing to compare...

[ZTWsquared]

reldridge,Nov 17 2008, 01:24 PM Wrote:Ford will make it, due to the strength of the small car lines and the willingness to evolve (and survive). Ford is also much stronger in other markets (Europe, Australia, South America, Asia) than Chrysler and GM. GM does have Vauxhaul/Opel in Europe, Holden in Australia and Buick in China, but Chrysler has nothing to compare...
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^^ I agree ... plus Ford's cash position is much better than GMs (they arranged significant financing last year) and IIRC their burn rate is much less than GM ... of all the domestic three, I think Ford has the best future if there's no bail out.