DOES FORD MOTOR COMPANY NEED GM & CHRYSLER TO MERGE?[GET THE LATEST
TRUTH WITH SPEEDZZTER HERE]
Joann Muller, writing for Forbes.com thinks so. In an article entitled
Why Ford Needs The GM-Chrysler Deal Done, Muller posits that FoMoCo needs the GM-Chrysler deal so that both General Motors and Ford can avoid a date with the bankruptcy court.
Muller also points out a few things that the hapless William Clay “Bill” Ford, Jr. and Alan Mulally did right.
In short, they mortgaged the company before the credit crisis, dumped some luxury brands, and did not follow GM by selling of their financing arm or plunging it into the home mortgage market.
Muller’s story prompted one reader (Iconoclast 421) to opine:
“Until Ford finds a way to turn a profit on a $13,000 40 mpg US-built car, it isnt [sic] worth even $2 a share.”
The idea that "F" (Ford) isn't worth a measly 200 cents a share unless it profitably builds a 40 m.p.g. car in the U.S. is simply insane. While sales are down and Ford is losing billions as it “right-sizes” its business, FoMoCo still has strong nameplates in Mustang, F-Series, Fusion and Focus. It also continues to dominate the police, taxi and "black car" fleet markets with its anvil-tough "Panther" series vehicles (Police Interceptor/Crown Victoria, Town Car)
While FoMoCo missed some of the mistakes of GM during the housing bubble, they made plenty of other ones. Here’s a few of the big goof-ups:
--Ford had
no contingency plan for high fuel prices (other than contracting in size and riding out the storm).
-- Ford
missed the market on large sedans with its slow-selling D3 (Five Hundred/Taurus/Montego/Sable).
–Ford
destroyed the Taurus franchise by failing to keep up with Camry/Accord and by consigning a poorly styled, poor performing, and generally uncompetitive model to daily rental car sales, which cheapened an already damaged nameplate.
--Ford
failed to move soon enough on B-cars (Fiesta), turbocharging (EcoBoost), light-duty turbodiesels, an expanded lineup of hybrids (i.e. a Panther-series hybrid, an F-Series hybrid, a high-performance V8 Mustang hybrid, and a C-class sedan hybrid).
–Ford
fiddled around too long on the wide-bore center Hurricane/Boss V8 and may have lost the opportunity to develop it properly into the LSX/Hemi/Tundra beater it could have been.
--Ford
killed the iconic SVT brand (instead of expanding it) and missed out on the sport compact niche.
--Ford
failed to redesign the Ranger and was not poised to take full advantage of the effect that higher fuel prices had on the light truck market.
--Ford failed to make the
Thunderbird into a credible and profitable sports car and did not develop an
affordable version of the mid-engine GT that could remain in production.
–Ford
failed to properly leverage its Australian and European assets to expand product competitiveness in the U.S. (In other words, some of Ford’s most desirable vehicles aren’t sold “at home” in the U.S.A.)
–Ford
failed to move fast enough on variable valve lift and timing, multivalve engines, variable geometry intake manifolds, twincharging, direct ethanol injection, six and seven-speed transmissions, Colletti “SuperCooler” charge-air cooling and other advanced technologies. –Ford failed to develop and market a
credible Scion/Honda fighter.
–Ford totally wasted any opportunity to
reposition Mercury as a “value-added,” risk-taking, high-tech boutique division.
–Ford
failed to develop sufficient platform flexibility to match the versatility of Toyota.
–Ford failed to develop fun, desirable and affordable models that would
capture a larger share of Generations X and Y.Now Ford may have to hope for the “Hail Mary” of a GM-Chrysler merger so it can survive long enough to do some of the things it should have done years ago. Labels: Boss V8, Chrysler, Eco-Boost, Electric Hybrid Mustang, F-Series, Ford Mistakes, GM, Jr., Thunderbird, Toyota, William Clay Ford