https://www.zerohedge.com/mark...sing-17-billion-loss

Just days after Ford reported a $1.7 billion operating loss during the fourth quarter, released 2020 guidance that failed to impress, and prompted a nearly double-digit drop in its shares in after-hours trade, the Detroit carmaker has announced a major executive shakeup on Friday.

WSJ reports that Ford President Joe Hinrichs is retiring, an ouster likely tied to the company's poor performance, now that its shares are trading at less than $9 while Tesla trades at an almost unbelievable multiple.

Strategy Chief Jim Farley will take his place.

FORD PRESIDENT OF AUTOMOTIVE JOE HINRICHS TO RETIRE: DJ
FORD TO NAME STRATEGY CHIEF JIM FARLEY COO: DJ

Last year, Ford angered president Trump by laying off thousands of manufacturing employees as it ended production for all of its sedans in North America as it pivots to focusing on the trucks and SUVs that comprise its most popular models.

I have worked as a consultant for the big three. One thing in common with the selections in leadership is...”this the way we always have done it”. The are alike as peas in a pod in education and experience. And, they all create vehicles and features that people don’t really want to pay for. They should focus on reliability, not cup holders. I hope the continue to survive, but things are gonna have to change.

I cheered when Ford refused to take any Obama bailout money (the only U. S. automaker to do so), but frowned when they decided to eliminate North American manufacturing for most of its sedans.

And, while I like the new C8 Corvette, I have sworn to never buy another GM vehicle based on what the company did to its shareholder, dealer network and employees, courtesy the stuttering, whistling, miserable excuse for a presidebt that was Obummer.

^^^^The bailouts put Ford at a competitive disadvantage compared to Government Motors and FCA. Couple that with all the recalls and warranty claims that Ford has had in the last few years and it’s not a great situation for them.

So, here's the funny thing. Probably known by everyone here, but at the recent D. C. Auto Show, the Toyota zone had cars all over the place festooned with banners that read, "Made in USA."

Toyota, Honda, Mercedes, BMW VW, and others now make some of their models entirely in the USA. Not so the "US" companies.

I suspect unions have a lot to do with this.

quote:

Originally posted by greco:
I have worked as a consultant for the big three. One thing in common with the selections in leadership is...”this the way we always have done it”. The are alike as peas in a pod in education and experience.

You see this in all industries, auto being massive so, giant spotlight. There's a ton of group-think that's entrenched, many C-Suite positions are held by 'like-minded' types who are unable to get out of their own way. What's crazy is many are easily swayed by whatever marketing puts before them, completely buying into focus group efforts and blowing with the winds that industry 'thought leaders' are putting out. There are very few company heads that are strong minded in vision and able to disseminate that vision to the rest of the brand, lots of operational and accounting types in charge.

So they're promoting their chief strategy officer because their strategy has been that good lately?

quote:

Originally posted by greco:
I have worked as a consultant for the big three. One thing in common with the selections in leadership is...”this the way we always have done it”. The are alike as peas in a pod in education and experience. And, they all create vehicles and features that people don’t really want to pay for. They should focus on reliability, not cup holders. I hope the continue to survive, but things are gonna have to change.

Yep. I fear Ford is doing little more than rearranging chairs on the Titanic. But more broadly, this is what happens to a company when it grows so large and detached from its customer base that it can no longer remain agile enough to react to market changes. Case in point, Ford has been teasing the 'New' Bronco for how long? And at current we still don't know for absolute certainly what the damn thing is truly going to be. One thing however is likely certain, given Ford's behavior over the last few years, is that Bronco buyers will likely spend a lot of time at their local dealership dealing with recalls on things that should have never been an issue.

quote:

Originally posted by greco:
... They should focus on reliability, not cup holders. ...

"But our cupholder are reliable!"

^^^^Love it!^^^


Also, you guys are spot on about corporate culture.

By the way, my son in law bought his first Ford a while back. It’s been back for 5 recalls already.

I am a Ford guy. Have been since 1997. This is the first time in my life that Ford doesn't make a vehicle I want to buy. Sad. Regards 18DAI

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Originally posted by nukeandpave:

quote:

Originally posted by fpuhan:
I cheered when Ford refused to take any Obama bailout money (the only U. S. automaker to do so)

https://www.forbes.com/sites/j...se-you/#289fb22f6735

Did you read the entire article? It even states Ford was LOANED the money. Government Motors saddled the American taxpayer with its losses.

The Garbage Motors bailout cost American taxpayers over 11 billion dollars.

This is all hysterical. I get bored every time I watch commercial TV because I'm inundated with ads for vehicles I wouldn't buy or even own.
Right now there's a chevy ad with a bimbo yelling "I love it". Bet she wouldn't be saying that after she owned one for a few months. But Ferd is no better. We get a young girl with her first new car raving about why she bought it. Like she's now an expert, with no experience.

And on TV now there's a shiny new F150 with 4 doors and probably a $60,000 sticker. Guess there are a lot of fools out and about. Making cars and trucks that we don't want and then spending another fortune making us want them is the thing these days. Then they express shock that we don't want them.

And another story: Way back in 1988 there was an event known as the All-4-Fun put on by the Mile-Hi jeep club out of Denver. It was in Ouray, Colorado (the event is held each year but ti skips around the state so they don't burn us out.) Ferd Motor Company showed up with all their latest and greatest offerings. And they had a big field to let us drive around and experience the greatness. Or not. At the end of the week they had a recital of the responses to their questions about what we liked the best.

I'm an old pervert (no surprise there). So what I answered what I liked the best was the cute little female engineer they brought along. We call it eye candy these days. So their big honcho got up in front of the crowd (all Jeep drivers or mostly so). And dismissed what we had to say. They even dismissed our preference for what vehicle they could make to make us buy one. It was overwhelming that we all wanted them to reproduce the 1977 Bronco - small body v8 with 2 fuel tanks and sturdy rear ends.

His reasoning was maybe good. He explained Ford would be out of business because we were mostly driving 20 year old CJs. Not many driving new jeeps because they were made by France and we all figured they were junk - correctly. They have a long history of ignoring what potential customers want and building what they want us to buy.

So we're back to the truth. American vehicles are the best engineered in the world. But they're engineered to be built, not owned.

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Originally posted by PowerSurge:

quote:

Originally posted by nukeandpave:

quote:

Originally posted by fpuhan:
I cheered when Ford refused to take any Obama bailout money (the only U. S. automaker to do so)

https://www.forbes.com/sites/j...se-you/#289fb22f6735

Did you read the entire article? It even states Ford was LOANED the money. Government Motors saddled the American taxpayer with its losses.

The Garbage Motors bailout cost American taxpayers over 11 billion dollars.

GM was also LOANED the money - and "paid it back" with grossly overvalued stock which the government sold at a loss, resulting in that 11 billion dollar loss. Not defending GM - I work for those assholes and quit buying their products long before the bailout- just tired of hearing this BS that Ford didnt get a bailout.

^^^^^Semantics. The Obama administration knew full well there was 0 chance of the US breaking even on that deal much less making money as they and GM sold their bullshit lies to the American people implyig the world would end if GM folded. The problem was GM’s credit rating was so bad with debt over twice as high as their assets that they couldn’t get a legit loan.

The US actually has made money on the loan to Ford. And we are continuing to make money on the loan until it’s supposed to be paid off by Ford in 2022.

Ford

Where Quality is job 1.1

Was kinda thinking that Obummer bailed out the UAW and not the manufacturers.

Chasing technology few actually want and pacifying the EPA because they have to.

quote:

Originally posted by nukeandpave:
... just tired of hearing this BS that Ford didnt get a bailout.

GM was bailed out to the tune of $49.5 billion plus another $17 billion for GMAC. GM was not loaned the money, rather the government bought GM and GMAC stock. The taxpayers lost $9 billion when the government sold its shares of GM and GMAC. Without government intervention, GM would have ceased to exist. Even with the bailout, they are a shell of their former self.

Ford borrowed $5.9 billion under a program to help manufacturers build hybrids, electric vehicles and cleaner small vehicles. Ford didn't need the money to keep their doors open and other manufacturers also borrowed money from the government under the same program. Ford is paying the loan back. At no point did the goverment purchase Ford stock.

GM took a bailout. Ford did not.

quote:

Originally posted by .38supersig:
Was kinda thinking that Obummer bailed out the UAW and not the manufacturers.

Chasing technology few actually want and pacifying the EPA because they have to.

The UAW was a huge reason the bailout happened.