Excerpted from New York Times, “Ford Says It Can Make It Without a Merger”, by Bill Vlasic, October 30, 2008
* * * * *
Ken’s Take: Everything is fine in October. Then, in the first week of November, Ford’s CEO shows up in Washington with a big tin cup. Huh ?
* * * * *
With United States vehicle sales down nearly 13 percent this year, most car companies have been cutting production rather than increasing it.
But with 1,200 hourly workers cheering them on, top executives of the Ford Motor Company said Thursday that they would call back 1,000 laid-off workers to help build more trucks.
While its Detroit rivals General Motors and Chrysler wrestle over terms of a possible merger and seek help from Washington to survive the steepest downturn in the industry in decades, Ford says it can survive, and thrive, on its own.
Ford is gearing up for a new-product blitz that will replace 40 percent of its production with fresh models by next year. And the company — sandwiched between the bigger G.M. and the smaller Chrysler in Detroit’s traditional Big Three — hopes to take advantage of the potential merger of its rivals and the distractions that come with it.
“I don’t know what they’re going to be spending their time on if they’re merging,” said James Farley, Ford’s vice president for sales and communications. “But I know we’re spending our time on launching products.”
* * * * *
Ford is counting on a wave of product introductions to increase its revenue during the market downturn.
In addition to the F-150, Ford is bringing out new versions of its Taurus and Mustang passenger cars next year and accelerating development of a series of new smaller, more fuel-efficient vehicles.
Analysts say they believe Ford has some opportunity to take market share from G.M. and Chrysler if the two companies merge and go through a prolonged restructuring.
“Ford could definitely make some hay while all the turmoil is going on at G.M. and Chrysler and they try to put those two companies together,” said Joseph Phillippi, principal in the consulting firm AutoTrends in Short Hills, N.J.
Ford is moving faster than its rivals to replace its big, gas-guzzling S.U.V.’s with small cars. But any hope Ford has for a revival depends largely on strong sales of its new F-150 pickup.
Through the first nine months of the year, the F-series was still the top-selling vehicle in America. The new version, Ford executives said, is aimed directly at buyers who need trucks for work and other practical purposes, rather than because of their macho image.
Edit by DAF
* * * * *
Full article:
http://www.nytimes.com/2008/10/31/business/31ford.html?ref=business
* * * * *
Want more from the Homa Files?
Click link => The Homa Files Blog
* * * * *
SHARE THIS POST WITH FRIENDS & FAMILY
The Homa Files 