[Aeisner]

I wonder what you guys think on a CNN article about domestics, titled Behind Ford's scary $12.7 billion loss. It seems to me that domestics are really losing out on the competition and are now pathetically looking for a scapegoat. If you would like to know I have always rooted for the home team, as you might say, and it was plain depressing to read about the team you're rooting for face a stiff competition and would not take the ball anymore. I quote:

"...For all the bad decisions these companies have made by not listening to their customers, they aren't entirely to blame. Structural inequities between the U.S. and Japan - notably in labor costs and currency - account for a big chunk of Detroit's problems."

On a personal note, I just had my car problem fixed. Green as I am when it comes to car maintenance, it was just last week that I learned it is not cooling a car needs from a radiator. My car takes to stalling. Turned out because it was running on a "generous amount of coolant," as the mechanic put it. Embarrassing, I know.

 

[pokershark]

why even talk about ford, their cars are crap , the quality is crap, the marketing is crap, the exterior is crap...

they deserve to go downhill
and no one can save them like chrysler

 

[dragin]

On the contrary, the domestics have been doing much better of late with both Geely and Chery taking more than 4% share each. Domestics overall accounted for 26% of sales in 2006, just behind Japan. Latecomer Ford's losses however, are expected to be great as it struggles to just squeak out 1%.

In any event, a lot of folks in the 22 provinces, 5 autonomous regions, and 4 municipalities are rooting for the hometeam.....

 

[mgrovernut]

why even talk about ford, their cars are crap , the quality is crap, the marketing is crap, the exterior is crap...

they deserve to go downhill
and no one can save them like chrysler

Not if you live in Europe. Ford are profitable here and top the sales charts (still after 13 years at the top). European Fords are built and designed in Germany and are much better than the US models.

PAG has issues, but Volvo and Land Rover are very strong and the problems at Jag fixable, as the brand still carries a lot of credibility. Mazda is booming.

North America is the problem. Lincoln is a US only brand. Mercury is so bad that Ford North America have decided to ditch the American product range for European models. The pensions and healthcare liablities are high, its a real mess.

But I'm not in the their doomed camp. Ford are closing about 16 factories in the US and are cutting their labour bill. They will burn through cash for the next 3 years whilst the product range is changed from SUV's to passanger cars. Their international divsions profitibality will soon be a lot healthier. Believe it or not but I think they will be booming in a few years time. Just like Fiat! If not then they will go into chapter 11 to protect themselves from liquidation and cut the labour bill even more drastically. If it got worse than that then they would sell PAG and Mazda. Ford Europe may then be split off and ultimately buy what's left of Ford USA.

The only way is up for Ford.

 

[chinacartimes]

Not if you live in Europe. Ford are profitable here and top the sales charts (still after 13 years at the top). European Fords are built and designed in Germany and are much better than the US models.

Ditto in China.

The Chang'an Ford models are also great quality. The Mondeo and the Focus are doing swift business. The pair of them are probably some of the most popular cars for Chinese middle class families.

 

[BringIt]

Ford is doing quite well all over the world, including China. It's in North America that it's floundering. With ridiculous labor rates and pensions, Ford is set to die. It's just a matter of time.

Soon Ford will have to declare bankruptcy to reorganize. That's the only way. Any other action will only temporarily stop the bleeding. Ford will eventually shrink to sell only F-150 and Mustangs - even these cars suck, but there's a legion of followers.

 

[mgrovernut]

Ford is doing quite well all over the world, including China. It's in North America that it's floundering. With ridiculous labor rates and pensions, Ford is set to die. It's just a matter of time.

Soon Ford will have to declare bankruptcy to reorganize. That's the only way. Any other action will only temporarily stop the bleeding. Ford will eventually shrink to sell only F-150 and Mustangs - even these cars suck, but there's a legion of followers.

Nah Ford International, PAG and Mazda will soon be strng enough to offset Ford USA's declining market share.

 

[BringIt]

Wishful thinking. The golden goose Aston Martin is just sold. Other PAG units are not really profitable. Ford only owns a third of Mazda, not a whole lot of a small car company.

 

[mgrovernut]

Volvo made it's fist loss in a decade but will return to profitability this year due to new car launches. Land Rover is setting record sales figures, is already profitable and has just launched the very sucessfull new Freelander 2. Mazda, is booming. Ford Europe is profitable.

Ford USA is actually the only problem and they are closing 16 factories and are cutting costs. Aston's sale will simply let Jaguar move back upmarket.

Personally I'm thinking of buying shares in them because I can't see their turnaround plan failing. In fact I think there is every chance that a better Ford will come out the other end. Land Rover has barely scraped the surface of it's potential yet. It may even turn into a BMW rival within the next 15 years (e.g. Range Rover now the top selling premium car in the UK, outselling the Mercedes S class).

 

[BringIt]

There's nothing Ford's doing that is giving me any confidence. Between GM and Toyota, Ford will be crushed. Ford in N.A. is probably 80% of Ford. If N.A. can't be turned around, all is lost.

I think you can do better with GM stock.

 

[mgrovernut]

There's nothing Ford's doing that is giving me any confidence. Between GM and Toyota, Ford will be crushed. Ford in N.A. is probably 80% of Ford. If N.A. can't be turned around, all is lost.

I think you can do better with GM stock.

People said the same thing about GM only a few months back. I used to share your view in actual fact, but the thing is if you look at Fords losses in NA today, factor in the 16 factory closures and new model program, then in 3 years time I thing you can expect them to make 1 billion dollars a year +