Can someone please enlighten me? How is FORD suppose to compete with the NEW GM that has no non-U.S. government debt and with a newly reduced labour cost? I would love to be the CEO of a company with no debt and a huge labour cost advantage over my competitors.
Ford
- Thread starter SkyRider
- Start date
SkyRider said:
Here's my simplistic answer:
1. Ford had their debt under control over a year ago....everyone has debt to run the business including GM.
2. Ford is currently negotiating with the unions. I had to laugh because they want the same deal that Chrysler and GM got, and the CAW is saying we don't do "pattern bargaining".
3. Big advantage is product, ie. highly acclaimed Ford Fusion, including the Hybrid model is getting good media buzz. Even Toyota Canada is whining that it's not a "true" hybrid.
I'd hazard a guess that ford will do what ford has been doing for years: run a company properly, sell great products, and do right by their customers by providing products the customers want, not what they want to sell them (unlike GM who had a product people were protesting for and they said F you).
Would you say the same about Toyota? Honda? I suspect they will compete very well.SkyRider said:
Ford is very busy right now unlike Chrysler or GM. I'm connected to the industry and they have just increased their parts quotas. They have capitalized on the fact that prospective customers are weary of buying cars from the competition due to their bankruptsy issues.
Regardless they have a great line up of vehicles. Good prices, good gas mileage and sharp looks. The new trucks, the Fusion, Flex and MKZ are really nice in their respective classes.
It's no surprise they're out selling their domestic rivals.
Regardless they have a great line up of vehicles. Good prices, good gas mileage and sharp looks. The new trucks, the Fusion, Flex and MKZ are really nice in their respective classes.
It's no surprise they're out selling their domestic rivals.
vsailor said:
Too true, the Euro version of the Focus is a great looking car. If it was offered over here I'd have bought it instead of the Mazda3 I ended up with. not that I don't love my 3, but the Ford is cool.
Ford is not as well off as you think. If they do not do a debt for equity swap, they could be next.
http://dealbook.blogs.nytimes.com/2009/07/07/does-ford-need-to-raise-equity/
http://dealbook.blogs.nytimes.com/2009/07/07/does-ford-need-to-raise-equity/
It is a bit like the old joke...as long as you can run away from the bear faster than your buddy...you don't need to outrun the bear.
Ford got lucky...by design or chance...and dealt with their debt, etc. at the right time. GM and Chrysler did not. Ford is benefitting enormously, not from having better products necessarily, but by looking like they are not a basket case.
The OP suggests the new GM has no debt. That is far from the case...they still will have enormous debt, just not as much as before. And being owned by the US goverment and the UAW, as well as by Canada/Ontario, will probably guarantee a non competitive GM.
I could be wrong. I really hope I am wrong.
Ford got lucky...by design or chance...and dealt with their debt, etc. at the right time. GM and Chrysler did not. Ford is benefitting enormously, not from having better products necessarily, but by looking like they are not a basket case.
The OP suggests the new GM has no debt. That is far from the case...they still will have enormous debt, just not as much as before. And being owned by the US goverment and the UAW, as well as by Canada/Ontario, will probably guarantee a non competitive GM.
I could be wrong. I really hope I am wrong.
Was listening to the radio yesterday and this analyst said that Ford is in "deep goo" because:
1) Its labour costs are too high compare to its competitors (GM and Chrysler).
2) Its debt load is too high compare to its competitors (GM and Chrysler).
That is Ford's reward for not messing things up and getting bankruptcy protection.
1) Its labour costs are too high compare to its competitors (GM and Chrysler).
2) Its debt load is too high compare to its competitors (GM and Chrysler).
That is Ford's reward for not messing things up and getting bankruptcy protection.
There has also been news that Ford does indeed want to renegotiate contracts with their workers to help them maintain equality with the others.
I had an 1984 Ford Tempo that they had changed every major oil seal twice and the stupid car was still leaking when I got rid of it. I still got a really decent penny for it which surprised me.
I have now been driving a Fusion for 2 years, warranty, due to mileage is up. I had one and only one problem (so far, knock on wood!) and cannot find any other faults with it!!
I enjoy driving it, it handles well, quiet and most comfortable. When my lease is up I will certainly take a look at what they have with no hesitations at all! I have always believed that I should be driving a north american car and with the distance that Ford has come, the imports are not worth the extra money. I believe that in time, the difference in residuals will even out and that North American cars will be a much better value, dollar for dollar.
I had an 1984 Ford Tempo that they had changed every major oil seal twice and the stupid car was still leaking when I got rid of it. I still got a really decent penny for it which surprised me.
I have now been driving a Fusion for 2 years, warranty, due to mileage is up. I had one and only one problem (so far, knock on wood!) and cannot find any other faults with it!!
I enjoy driving it, it handles well, quiet and most comfortable. When my lease is up I will certainly take a look at what they have with no hesitations at all! I have always believed that I should be driving a north american car and with the distance that Ford has come, the imports are not worth the extra money. I believe that in time, the difference in residuals will even out and that North American cars will be a much better value, dollar for dollar.
I had a 70something Pinto, and after that car I swore off Ford until I picked up the Taurus. I've been surprised, very little has really gone wrong except for expected wear and tear and the f..king tranny.
The new Taurus has received high praise in the media I've noticed.
The new Taurus has received high praise in the media I've noticed.
The new Taurus is the Five Hundred rebranded. They did not do proper advertising on he 500 and then figured by rebranding it as the Taurus that it would sell.
The Taurus has been their number 1 all time sales leader.
Cycleguy007
Banned
