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Ford overhauls Way Forward plan (14K Non-Direct Labor Jobs Gone)
Autonews ^ | 9/15/06 | Mikey_1962

Posted on 09/15/2006 5:16:26 AM PDT by Mikey_1962

Cuts include 14,000 white collar jobs, fourth-quarter dividend; North American operations likely not profitable before 2009; market share expected to be around 15 percent

DETROIT -- Ford Motor Co. said today it will cut its operating costs by $5 billion and cut its salaried work force by one-third, or about 14,000 positions, as it speeds up its Way Forward restructuring plan.

Ford also said it will not pay a stock dividend for the fourth quarter, and will sell or close all former Visteon plants by the end of 2008 and close other plants.

The automaker now acknowledges that it won't return its North American automotive unit to profitability by the end of 2008 as previously planned. Because of further expected market share declines, Ford now says that full-year profitability for the unit is not expected before 2009.

That unit lost $1.6 billion before taxes in 2005. It lost another $1.3 billion before taxes and one-time charges through the first half of this year.

Market share for the Ford, Lincoln and Mercury brands will continue to fall, Ford said today. The combined market share of the three brands already has dropped by 1.1 percentage points through August, to 16.8 percent of the U.S. market.

Ford said today that U.S. market share of those brands will be in the low 16 percent range by the end of this year. Ford expects share to further fall to the 14 to 15 percent range in the future.

Ford will idle its Norfolk, Va., assembly plant in 2007, a year earlier than planned. That plant builds F-150 pickups.

A shift reduction is now planned for the Norfolk plant and the St. Paul, Minn., plant that builds the Ford Ranger pickup.

(Excerpt) Read more at autonews.com ...


TOPICS: Business/Economy
KEYWORDS: automotive; ford; homosexualagenda
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Going Down?
1 posted on 09/15/2006 5:16:27 AM PDT by Mikey_1962
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To: Mikey_1962
Going Down?

I think the correct term is "TAKE OVER"

2 posted on 09/15/2006 5:19:51 AM PDT by Taggart_D
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To: Taggart_D

"I think the correct term is TAKE OVER"

The question is, "Who wants Ford."


3 posted on 09/15/2006 5:21:42 AM PDT by BW2221
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To: Mikey_1962
Fix Or Repair Daily


BUMP

4 posted on 09/15/2006 5:23:02 AM PDT by capitalist229 (Get Democrats out of our pockets and Republicans out of our bedrooms.)
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To: Mikey_1962
Ford is not exactly disappearing but with that big a cut in their white collar workforce it looks like they are "outsourcing" administration to their overseas divisions.

Someone is "protecting the dealerships" too. This is a very stupid move ~ sure, they might need all those dealers in the future, but you can contract for that service as needed. International Harvester even went so far as to absorb the debts of its dealership network ~ a vast sum of money at the time that turned out to be more than the company itself was worth.

They went out of business.

Ford is going to go out of business eventually doing this.

It will be interesting to see who buys which current Ford assets at bankruptcy ~ certainly won't be the dealers they are protecting today.

5 posted on 09/15/2006 5:23:10 AM PDT by muawiyah
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To: Mikey_1962

bump


6 posted on 09/15/2006 5:23:11 AM PDT by VOA
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To: BW2221

The question is why do those on this board (not all but some) hate American Auto manufacturing and delight when people lose their jobs. Frankly it's sickening. I want Ford to succeed.


7 posted on 09/15/2006 5:23:17 AM PDT by nyconse
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To: BW2221

Some do. I'd take one.


8 posted on 09/15/2006 5:24:18 AM PDT by Shimmer128 (KŻlia i ka nu`u.)
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To: Mikey_1962

Hopefully not. They make some good cars and trucks, but as with many large corporations, are finding their market shares down and their expenses up. That cannot continue for long without major changes in the way thinks operate. I do my part with a 04 Grand Marquis, and 95 Explorer.


9 posted on 09/15/2006 5:24:39 AM PDT by wita (truthspeaks@freerepublic.com)
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To: BW2221

I'm hoping for some foreign-owned company to give all the labor unions something to complain about.


10 posted on 09/15/2006 5:25:09 AM PDT by Taggart_D
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To: nyconse

Companies exist for the benefit of their stockholders NOT their employees. That is Capitalism. Whatever Ford does to protect their stockholders is all I care about.


11 posted on 09/15/2006 5:27:05 AM PDT by LetsRok
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To: capitalist229

Found On Road Dead.


12 posted on 09/15/2006 5:27:23 AM PDT by wita (truthspeaks@freerepublic.com)
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To: LetsRok
Whatever Ford does to protect their stockholders is all I care about.

What a nice guy you are.

13 posted on 09/15/2006 5:30:51 AM PDT by JackDanielsOldNo7 (On guard until the seal is broken)
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To: nyconse
The question is why do those on this board (not all but some) hate American Auto manufacturing and delight when people lose their jobs.

Just try to defend domestic vehicle quality around here and you will hear plenty of anectodal evidence, but very little substance.

Ford has brought much of its pain upon itself. It has been too closely tied with its unions. Management has been derelict in its duty to keep the company innovations coming.

I said last year, when the media was writing GM's epithet that it would be Ford in the most trouble. It may require a takeover to straighten them out, especially when Daimler-Chrysler overtakes them in market share.

14 posted on 09/15/2006 5:31:54 AM PDT by Erik Latranyi (The Democratic Party will not exist in a few years....we are watching history unfold before us.)
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To: nyconse
The question is why do those on this board (not all but some) hate American Auto manufacturing

Uuuuhhhh....can you say "LABOR UNIONS" sucking out all the competitive blood out of the American auto industry? Hate American auto manufacturing? I think its more like wishing the american auto industry can get up to the 21st century and get rid of the prima donnas assembling all the cars.

I toured the Ford Rouge facility and was shocked to see the auto workers standing around with I-Pods in their ears and gabbing to their friends much of the time....and they're probably pulling down about $100,000 a year. They need to get a job like the rest of us in America they are an embarrassment to the rest of the working class.

15 posted on 09/15/2006 5:33:43 AM PDT by Taggart_D
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To: LetsRok
Whatever Ford does to protect their stockholders is all I care about.

Their stock is a Junk status right now.

16 posted on 09/15/2006 5:36:13 AM PDT by Alouette (Psalms of the Day: 106-107)
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To: Mikey_1962

Going down, the sooner the better


17 posted on 09/15/2006 5:37:13 AM PDT by trustandobey
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To: nyconse
The question is why do those on this board (not all but some) hate American Auto manufacturing and delight when people lose their jobs. Frankly it's sickening. I want Ford to succeed.

I agree. I live in the former manufacturing powerhouse known as the I-94 corridor in southern michigan. We used to be the home of secondary automotive industries that went overseas. They weren't union or high paying jobs, they mostly paid enough to raise a family on but little else. Today it's all low paying retail jobs or welfare here.
18 posted on 09/15/2006 5:38:36 AM PDT by cripplecreek (If stupidity got us into this mess, then why can't it get us out?)
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To: Mikey_1962
Going Down?

I am here on the Titanic right now. In half an hour the Captain will speak and say who gets a place on the lifeboats and who gets life jackets and who goes overboard.

19 posted on 09/15/2006 5:38:47 AM PDT by Alouette (Psalms of the Day: 106-107)
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To: nyconse
I want Ford to succeed even more than you because I live in Detroit and do work with automotive manufacturers, primarily the "Big Three," but also some Asians.

Of the "Big Three," Ford is by far in the worst shape. Cutting costs is only part of the problem. They need to start designing products (particularly cars) that people want to buy, stop losing market share and completely rebuild morale of both employees and its dealer body.

GM looks like they are starting to turn the corner. GM has introduced a number of new models and its new full-size pickups have received rave reviews. Chrysler Group has major inventory problems, but has lots of new models it's about to launch. Then, there's Ford.

A lot of people question the wisdom of paying top-dollar for a new CEO with no automotive experience. Typically outsiders named to high positions in the auto industry fail.

Unfortunately, with all Ford's problems, I'm not sure any competitor would want to merge with them.
20 posted on 09/15/2006 5:47:21 AM PDT by BW2221
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To: Taggart_D
Foreign-owned companies have labor unions in their home countries. The Korean auto unions make the UAW look like the Cub Scouts.

The Japanese and Korean manufacturers learned from history and built plants in non-union areas. Likewise, when the "Big Three" builds new plants overseas, they are typically in non-union areas.

Unions are only part of the problem. Union leaders didn't design dogs like the ford Five Hundred and Freestyle. The last successful CAR Ford introduced was Taurus in 1985.
21 posted on 09/15/2006 5:53:07 AM PDT by BW2221
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To: BW2221

LOL! Haven't owned a Ford since 1981 and never will again.


22 posted on 09/15/2006 6:02:46 AM PDT by alice_in_bubbaland (NY Slimes the paper of record for OBL!)
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To: Alouette; apackof2

Ford was on a pretty good roll, especially with their trucks, until Jaques Nasser (aka Jaque the Knife) assumed the honcho position. He was a guy that ruled thru terror and really killed morale - a lot of good people left. Billy Ford is a decent fellow but couldn't pull them out of their tailspin.


23 posted on 09/15/2006 6:04:08 AM PDT by nascarnation
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To: All

are they finally going to drop mercury?


24 posted on 09/15/2006 6:14:46 AM PDT by Kewlhand`tek (Those that can't , Teach. Those that can't teach , Report)
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To: LetsRok

Actually companies exist for the benefit of the country. That is until they become internationalists who don't give a damn about the welfare of the United States.
You had better be concerned about employees because it is from them that the unrests arises that destroys nations.


25 posted on 09/15/2006 6:18:53 AM PDT by em2vn
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To: Mikey_1962
Actually, I think Ford is serious about competing with Toyota and Honda and is willing to endure the pain needed to get back on track.

GM, on the other hand, seems hopelessly lost.

26 posted on 09/15/2006 6:21:11 AM PDT by Senator_Blutarski (No good deed goes unpunished.)
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To: BW2221

Well there's that car called the Mustang that's doing OK, but your correct. I support automotive manufacturing as well, but it's all Toyota and currently they are ramping up three new production lines in North America...


27 posted on 09/15/2006 6:21:22 AM PDT by Rev DMV
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To: muawiyah
This "outsourcing of white collar jobs" is a fad.

Right now to get a Purchase Order from GM it has to go from Warren MI to India, and after we invoice the disbursement comes form Jamaica.

IN 4 years they will realize this is inefficient and more costly than being done now... but by then the 'Genius' who came up with this unworkable system will have moved on to his new job and this will disappear as fast as it came.

Just look at GM's past programs: Zero Defects, Targets for Excellence etc. all of them lasted 3 to 4 years and then silently died.
28 posted on 09/15/2006 6:24:47 AM PDT by Mikey_1962 (If you build it, they won't come...)
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To: em2vn
"Actually companies exist for the benefit of the country. "


I don't know where you got that nugget, but you had better come back to the real world. If you ask any major company or corporation in the United States, "benefiting the country" will not be one of the reasons why they are in business. Companies are in business to MAKE A PROFIT. That profit is then shared with their investors.
29 posted on 09/15/2006 6:30:25 AM PDT by LetsRok
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To: nyconse

"The question is why do those on this board (not all but some) hate American Auto manufacturing and delight when people lose their jobs. Frankly it's sickening."

It is sickening. There are a few groups who cheer the loss of American jobs:
1 - Extreme capitalists. They view the world from the standpoint of "pure capitalism", (I'm not sure that exists). They have a very narrow view, a view that will one day bite them. They worry only about profits this quarter, and are the folks who are behind our current problems with corporations not innovating because R&D takes from quarterly profits. These folks aren't Americans first, they're capitalists first and foremost. They cling to the flag when they need Americans to die for their corporate interests.
2 - Business owners who have had employee troubles, (most business owners). These folks are disgusted by the unions. They don't care that the companies agreed to these deals, they just hate unions. So, anything that hurts a union, is good, in their eyes. Even if it requires one of the biggest American companies going down the tubes. If it hurts a union, it's good.
3 - Jealous people. Not all conservatives are wealthy. There are many who make less than union workers, and work harder. So, they too, hate unions. They delight in seeing the "prima donnas" get taken down.

What all of these "patriots" purposely ignore is that their countrymen are being put out of jobs. Also, that job losses at a manufacturer such as Ford are cascading, and that jobs will be lost at connected businesses. This will result in Americans losing many jobs, thus going on unemployment. This is all free, our taxes will not go up right? I know, not federal, they'll let the states do it. That way, the "conservatives" in states that aren't impacted won't see economic damage right away, and will continue to cheer. Also, these people who lose their jobs buy things. A lot of businesses will lose customer base. Our capitalist friends will scream then, because quaterly profits will be impacted.
Finally, republicans control the government, both houses, and the executive. Not all factory workers vote with the union, I know this for a fact. Not all will vote democrat because of losing their jobs, but more will. And it won't be restricted to the 70k laid off. It will be workers in related businesses, family and friends who will want to punish those in power.

Yeah, listen to them cheer, for now.


30 posted on 09/15/2006 6:30:29 AM PDT by brownsfan (It's not a war on terror... it's a war with islam.)
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To: Alouette
I hope you get a lifejacket and a spot in a life boat. :)

My father-in-law is a Ford (salaried) retiree and my brother-in-law is a current salaried employee. I pray his job is safe.

31 posted on 09/15/2006 6:32:22 AM PDT by TonyInOhio (God - Country - Notre Dame)
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To: LetsRok

You need a soul.


32 posted on 09/15/2006 6:33:00 AM PDT by Nuc1 (NUC1 Sub pusher SSN 668 (Liberals Aren't Patriots))
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To: LetsRok
Ford is not protecting the stockholders. Rather, they are protecting the "stakeholders" ~ big darned difference.

Management will keep their jobs; dealers will not have to eat outstanding debt or overstocked SUVs; suppliers won't be stiffed.

Won't be any profit, but what the heck ~ Ford continues to have stockholders who think all this stuff protects their equity stake.

33 posted on 09/15/2006 6:35:49 AM PDT by muawiyah
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To: BW2221

BTW, just before it went belly-up International Harvester hired an outsider without automotive experience.


34 posted on 09/15/2006 6:37:32 AM PDT by muawiyah
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To: LetsRok; em2vn

"Companies are in business to MAKE A PROFIT."

From another post of mine:

Extreme capitalists... These folks aren't Americans first, they're capitalists first and foremost. They cling to the flag when they need Americans to die for their corporate interests.

Now I would ask, are coroporations entities that simply exist? Are there no people in these corporations? If there are people involved, are they Americans? Is there a pledge of allegience to your country? Why is it we don't pledge allegaince to the company? Those who elevate the company to a higher status than the country are very misguided and just as dangerous to America as the Marxist crowd.


35 posted on 09/15/2006 6:37:36 AM PDT by brownsfan (It's not a war on terror... it's a war with islam.)
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To: LetsRok

That nugget comes from a reading of our history as well as that of other nations.
If ultimately the only purpose of a business is to make money, everthing else takes second place; a stable society, abiding by the law, continuation of our republic, an exemplar of freedom to the world.
There is no doubt that business must make a profit but business does not exist within a vacuum where the events of the world come second to the profit motive.


36 posted on 09/15/2006 6:38:46 AM PDT by em2vn
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To: trustandobey

"Going down, the sooner the better"

Another "Great American". Can you enumerate the benefits that America will see when one of their larger manufacturers close their doors?


37 posted on 09/15/2006 6:39:38 AM PDT by brownsfan (It's not a war on terror... it's a war with islam.)
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To: brownsfan

I think you raise a good point in your #3, however I might suggest it is resentment rather than jealousy because it is a largely protected class (unions) unlike small business owners who often work doggedly for a lot less. And oh, they create jobs rather than cost them.


38 posted on 09/15/2006 6:40:10 AM PDT by quantim (Victory is not relative, it is absolute.)
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To: LetsRok
Companies exist for the benefit of their stockholders NOT their employees.

ALL Organizations exist for the benefit of the individuals that make up the group...at least under freedom of association. That includes employees and shareholders.

If not, they will cease to exist.

Existing exclusively to sell stock (and not product) is what has gotten Ford and the rest of the US manufacturing in the state that it is in. ...with a buch of help from the IRS and Unions.

39 posted on 09/15/2006 6:41:20 AM PDT by Dead Dog
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To: brownsfan
Companies exist as a consequence of laws established by the government. If you didn't have "limited liability" you'd find companies much less popular as a way of doing business.

Those who support companies support the system of laws making companies possible. Those who support that system of laws support the country.

We don't have a dichotomy here; rather, it's a seamless garment of interconnected structure.

Ford's assets don't just evaporate in a bankruptcy. Rather, they will be assigned to new and more deserving owners and managers. The employees will see to it that their own discomfort is limited in duration and scope ~ however, I'd move out of Greater Detroit.

40 posted on 09/15/2006 6:45:06 AM PDT by muawiyah
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To: Mikey_1962
Ford almost went down earlier when the first Torus saved them. The torus was designed by a small team for a small amount of money. The Contour had a huge design team and cost Ford over two billion to get on the road. Recall what a success the Contour was?/s off This was the beginning of the current crisis.
41 posted on 09/15/2006 6:45:55 AM PDT by Nuc1 (NUC1 Sub pusher SSN 668 (Liberals Aren't Patriots))
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To: Mikey_1962

It sounds like they've hired Mr. Mulaly to conduct Ford's funeral.


42 posted on 09/15/2006 6:48:33 AM PDT by RoadTest (- - - for without victory there is no survival. -Winston Churchill)
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To: quantim

"...small business owners who often work doggedly for a lot less. And oh, they create jobs rather than cost them."

It was an observation, not an endorsement of unions. Everyone knows that management/employee relations is cyclic, and that when the cycle favors unions, business and often the economy suffers. The cycle now favors management.
Think of the cycle as releasing energy. If the cycle is stopped in favor of one group for a long period of time, bad things can happen. If it favors unions for too long, as it did in the 70s and 80s, businesses and the economy are significantly damaged. If it favors management too long, you have worker unrest and political upheaval.


43 posted on 09/15/2006 6:50:28 AM PDT by brownsfan (It's not a war on terror... it's a war with islam.)
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To: Senator_Blutarski

"Actually, I think Ford is serious about competing with Toyota and Honda and is willing to endure the pain needed to get back on track.
GM, on the other hand, seems hopelessly lost."

It's really the other way around.


44 posted on 09/15/2006 6:50:31 AM PDT by RoadTest (- - - for without victory there is no survival. -Winston Churchill)
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To: muawiyah

"Ford's assets don't just evaporate in a bankruptcy. Rather, they will be assigned to new and more deserving owners and managers. The employees will see to it that their own discomfort is limited in duration and scope ~ however, I'd move out of Greater Detroit."

I disagree. You're using zero sum. Are you a Marxist? Just as wealth can be created, it can be destroyed.

This is not a zero sum game.


45 posted on 09/15/2006 6:52:43 AM PDT by brownsfan (It's not a war on terror... it's a war with islam.)
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To: brownsfan
1 - Extreme capitalists
2 - Business owners
3 - Jealous people

4 - Those who have been stung by the quality of cars from the big three (or now big two). Are American cars much better than they used to be? Yes, but other manufacturers have improved too. People are often bitter for a long time after owning a rolling money pit.

46 posted on 09/15/2006 6:54:37 AM PDT by KarlInOhio (Dems - Your conduct is an invitation to the enemy, yet few of you have heart enough to join them.)
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To: BW2221

"The last successful CAR Ford introduced was Taurus in 1985."

The new Mustang is quite a hit however it will probably not have long legs due to a limited market. My wife was looking for a crossover and tried the Freestyle. She found it harsh riding and noisy. Not to mention the styling...needless to say she didn't like it. One thing that might help American manufacturers is establishing an effective customer feedback mechanism. I sure would like to talk to the car designers. Sometimes you have to wonder what they are thinking. The new Mustang is the first good looking car that the "common" man can "afford" that Ford has made in more than a decade. Style sells, it is the most basic requirement of a successful vehicle. Performance, reliability, value must also follow.


47 posted on 09/15/2006 6:59:22 AM PDT by Nuc1 (NUC1 Sub pusher SSN 668 (Liberals Aren't Patriots))
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To: KarlInOhio

"4 - Those who have been stung by the quality of cars from the big three (or now big two). Are American cars much better than they used to be? Yes, but other manufacturers have improved too. People are often bitter for a long time after owning a rolling money pit."

There is a difference between not buying a companies product and cheering their demise. Yes, you were bitten. I was too. But to be happy about Ford's current situation seems a little like cutting off your nose to spite your face.


48 posted on 09/15/2006 6:59:24 AM PDT by brownsfan (It's not a war on terror... it's a war with islam.)
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To: muawiyah
There have been lots of people of people on FR praising the hiring on Mulally as CEO, but most people in the industry are less optimistic. The auto industry is very competitive and really a different kind of animal. The last time a major manufacturer hired outsiders, it was GM hiring consumer products people to run marketing and Oldsmobile Division and the results were disastrous.

Some things Mulally will discover, if he hasn't already:
- It's much more competitive than Boeing - you're competing against Toyota, Honda and even GM rather than a government-controlled bureaucracy (Airbus)
- The government subsidizes Boeing and awards them major contracts because they are the only major American manufacturer. The government doesn't care if people buy Fords that are built in Michigan or Toyotas built in Kentucky. In fact, the heads of the "Big Three" have been trying to schedule a meeting with Bush since May. He has had time to meet the Little League World Series champs from Georgia, but not the heads of the "Big Three."
- Working with a dealer organization (independent businessmen) is a challenge. They don't take orders like company salesmen
- Commercial airlines buy equipment primarily for rational reasons (price, operating costs, etc.). Consumers buy cars for emotional reasons (styling, the shape of the headlights, etc.)
- Boeing has enough Dreamliner orders to keep production running through 2010. In the automotive industry, you're measured on monthly sales
49 posted on 09/15/2006 6:59:57 AM PDT by BW2221
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To: TonyInOhio

I am a contractor, we are "disposable employees."

I took this assignment knowing that it can be terminated at any time, even if my performance is flawless. It just goes with the territory.

They did announce massive job cuts this morning, most will be early retirements, voluntary separations, but inevitably there will be involuntary separations.


50 posted on 09/15/2006 7:07:18 AM PDT by Alouette (Psalms of the Day: 106-107)
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