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OAC_Sparky,Sep 15 2006, 01:56 PM Wrote:My premise is this. Ford Europe, while very profitable THIS year, only makes less than 1/5 of the BILLIONS of dollars the NA arm made when it was profitable.
And while gas was cheap, all was good. I'm not saying this was a good decision or one I would have made. But that was the decision that was made.
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We're not really disagreeing other than you seem to think that Ford had no other course of action -- I happen to know they did.

I know my Ford history – since 1992 I’ve had a unique opportunity to understand the inner workings at Ford at a senior executive level – and not everything is what it seems; in fact, most things aren’t.

Senior management in Detroit has ignored dire warnings from within its own management for literally decades. There have been dozens of Ford execs who years ago foresaw today’s predicament and long ago recommended the changes Ford is only now making. Many of those warnings originated at Ford Europe.

Once Americans from Detroit figured out they didn’t know how to run Ford in Europe, and put Europeans at the helm, that entity made the necessary changes and became profitable … a position they’ve been in since 2000.

The difference now is that Ford Europe is properly managed and Ford U.S. isn’t.

You’re question was, I believe: “If as you said, Ford is a #1 product abroad, why is it not making money...?”

This is like asking “when did you stop beating your wife?” Your implied premise, that Ford couldn’t be #1 because they don’t make money, is fundamentally flawed because they in fact do make money – the fact that at one time they didn't and whether or not they are number one right now are both irrelevant.

Ford in Europe put itself on the path to profitability a long time ago – making changes that Ford NA is just now contemplating … the fact that Ford Europe drew the road map that Ford NA totally ignored, is that much more of a condemnation of Ford management than simply their sad state now.

Bottom line - Ford's predicament today is solely due to bad management - especially on the product side - and in today's circumstance it is a legitimate comparison to look at Ford Europe and say "that's how it should have been done in North America."