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Old 11-14-2008, 07:51 PM   #1
Chromer
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Default Ford: "You can't cut your way to profitability."

Ford is pedal to the metal on new product launches...

From Autoblog Green

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Ford says product first, "you can't cut your way to profitability"

Posted Nov 14th 2008 at 9:39AM by Sam Abuelsamid


It's been said that "you can't cut your way to profitability." This is especially true in product-related businesses like the auto industry. It doesn't matter how low your costs are if you don't have desirable products that people want to buy. Ford CEO Alan Mullaly appears to understand this maxim. In spite of financial difficulties, so far Ford has not delayed any new product programs. The retooling of former truck factories to produce the Fiesta, next generation Focus and other small and mid-sized cars is proceeding full speed ahead. Ford spokesman Alan Hall was asked at a meeting about adding extra production capacity for the new Fusion in the event that sales take off after it's introduction. Hall said that the factories that are being re-tooled are being switched flexible manufacturing systems that will allow Ford to adjust quickly, much like Honda has done recently.

This contrasts sharply with General Motors which has gone into cash conservation mode and delayed virtually every new product program except the Volt. Unfortunately, given GM's dwindling cash reserves, they may have no other viable option. Delaying new products is not desirable, but if bills can't be paid, the products won't matter because no one will supply parts. The big question is how long will Ford be able to persist before it has to start cutting?
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Old 11-14-2008, 08:43 PM   #2
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Ford>GM
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Old 11-14-2008, 09:08 PM   #3
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Good. The fiesta just might save Ford.
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Old 11-14-2008, 09:15 PM   #4
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Originally Posted by Kostamojen View Post
Good. The fiesta just might save Ford.
Hmmm....a modern day "K" car. Not in the sense that it'll be a kick butt platform...but it's a car for today's times.

What a concept.
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Old 11-14-2008, 09:25 PM   #5
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Originally Posted by 302@12psi View Post
Hmmm....a modern day "K" car. Not in the sense that it'll be a kick butt platform...but it's a car for today's times.

What a concept.
it is a kick butt platform, the demio(mazda2) was world car of the year, they share the same platform. and technically it's way too big to be a Kei car
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Old 11-14-2008, 10:10 PM   #6
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It doesn't matter how low your costs are if you don't have desirable products that people want to buy.
I'm not sure why all the domestics can't figure this out.
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Old 11-14-2008, 11:35 PM   #7
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Originally Posted by SQ3.0dotJP View Post
it is a kick butt platform, the demio(mazda2) was world car of the year, they share the same platform. and technically it's way too big to be a Kei car
Obviously not a reference to the actual "K cars" but rather a vehicle that more or less saved the now doom faced Chrysler company some 20 years ago.
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Old 11-14-2008, 11:43 PM   #8
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I'm not sure why all the domestics can't figure this out.
GM did and has good products right now and more on the horizon.
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Old 11-14-2008, 11:59 PM   #9
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Quote:
Originally Posted by SQ3.0dotJP View Post
Ford>GM
I'll take the bait...(I by no means a GM or Chevy guy)
If stock prices were any indicator, I'd be inclined to think otherwise.
If quality is an indicator, I do strongly know otherwise as Ford's mechanical quality or lack thereof feeds my family.
How does the old saying go?
Ashes to ashes, dust to dust, if it wasn't for Ford, my tools would rust

I think this adaptability move on Ford's part is strangely/uncharacteristically smart. They can't put all their eggs into Vanilla fleet offerings and coque/dong enhancing F350 Powerjokes. EcoBoost has me excited as well as some other offerings that could offer us here in the USA a taste of European Ford, this is good.
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Old 11-15-2008, 12:09 AM   #10
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Originally Posted by Kostamojen View Post
Good. The fiesta just might save Ford.
It'll take more than just the Fiesta to save Ford. It may help (if they sell) but it won't save them.
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Old 11-15-2008, 12:52 AM   #11
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GM did and has good products right now and more on the horizon.
such as? and when is the release date?
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Old 11-15-2008, 01:24 AM   #12
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I like the new additude ! Bring some of the euro options over now .
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Old 11-15-2008, 01:44 AM   #13
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Just a note, Ford's market cap is about 3x that of GM's. Share price doesn't really enter into it. If you were to buy every share of Ford versus every share of GM, you would be paying 3 times more for Ford.
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