The Truth About Cars » Ford Death Watch

Editorial: Ford Death Watch 48: Branding Isn’t Everything

Robert Farago — Mon, 01 Dec 2008 22:11:57 +0000

It’s been a while since we’ve run a Ford Death Watch. Which doesn’t mean Ford isn’t dying. It is. It’s just dying more slowly and less spectacularly than GM and Chrysler. In fact, Ford’s head-faked the press. They’ve convinced the pundocrats that The Blue Oval Boys don’t need federal bailout bucks to survive. Oh what the Hell, FoMoCo CEO Alan Mulally just about told Congress, as you’re offering… we might as well accept. In truth, the Detroit’s last man standing is about to hit the pavement just as hard as its cross-town co-conspirators.

Ford Death Watch 47: The Man With the Plan

Ken Elias — Wed, 13 Aug 2008 18:58:26 +0000

In a recent article, The Economist wondered if Detroit's automakers would win their "race against time." In other words, will Ford, GM or Chrysler return to profitability before their cash conflagration throws them into the Chapter 11 burn unit? At the risk of providing a piercing glimpse into the obvious, The Big 2.8 need to change course or flame out. STAT. The Economist rightly suggests that Ford is the only carmaker of the three with a coherent strategy for escaping C11. For contrast, let's recap GM's and Chrysler's plans...

Ford Death Watch 46: The Toyotafication of Ford

Stein X Leikanger — Fri, 25 Jul 2008 13:12:27 +0000

At one time, the nations of Europe took great pride in their cavalry divisions, horses and men numbering tens of thousands. Then the Gatling gun made its debut, and all those horses and all that equipment became sausages and bric-a-brac. And so it is with the SUV. The Gatling gun of rising gas prices has laid waste to The Big 2.8's armies, throwing their plans into complete chaos. To its credit, Ford is attempting to regroup, rearm and re-engage. So how's it going?

Ford Death Watch 45: Last Man Standing Pt. 2

Michael Martineck — Thu, 19 Jun 2008 13:53:45 +0000

I recently bought a dishwasher. Investor Kirk Kerkorian (a.k.a. “The Lion of Las Vegas”) bought 20m shares of Ford Motor Company. As a percentage of net worth, we each spent comparative amounts. But I’m pretty sure I got the better deal. I’m positive I’m going to have guacamole-free dinnerware for the next five years. Capt. Kirk can’t make anywhere near as bold a statement about the longer-term value of his Ford shares. Or can he?

Ford Death Watch 44: Captain Kirk Bets on The Last Man Standing

John Horner — Mon, 12 May 2008 13:09:19 +0000

Why would gunslinger/investor Kirk Kerkorian want to buy Ford? After two decades living high off the [gas] hog, Ford’s still suffering the Mother of all Hangovers. The night before the day after, FoMoCo headed down to the Vegas strip and got hitched, polygamy-style (Hertz, Aston-Martin, Jaguar and Volvo). While town father Bill Ford's sobered-up and hired sheriff Mulally-- whose drawn-up the divorce papers and cleaned-up the town-- it still looks like tornado fodder. And here comes Captain Kirk, all guns blazing, looking to take over the joint. Why now?

Ford Death Watch 43: Drive One… What?

Robert Farago — Sun, 13 Apr 2008 13:19:36 +0000

"Ford on a good day is always about the people," declared Jim Farley, group vice president of Ford marketing and communications. Like many of these pre-digested pronouncements, Farley’s seemingly innocuous, feel-good assertion is fraught with unintentional meaning. What does Farley mean by “Ford on a good day?” What’s Ford about on a BAD day? Is Ford bi-polar? Manic depressive? Does it forget to take its meds? And what about the contradiction between “on a good day” and “always?” And, most damning of all, Ford is NOT about the people. It’s about the product.

Ford Death Watch 42: Culture Eats Strategy for Lunch

Michael Martineck — Thu, 27 Mar 2008 12:37:34 +0000

Automotive News recently published an interview with Ford's group vice president of human resources. Joe Laymon mentioned the names of six brass hats Ford considers potential successors to their current CEO Alan Mulally. As Mr. Mulally has only been in office for just 18 months, anticipates a long stay and hasn’t seen his 63 birthday, the timing was, at the least, odd. More importantly, Laymon effectively turned a succession plan into a very public episode of Survivor Dearborn.

Ford Death Watch 41: Time to Bail

Matthew Neundorf — Thu, 24 Jan 2008 20:58:36 +0000

Alan Mulally began last year as a passenger on a nose-diving Ford Motor Company. Clocking the company’s $12.6b fiscal flummox, FoMoCo’s CEO left no punches unpulled. "We fully recognize our business reality,” Big Al pronounced. “And we’re dealing with it.” Twelve months later, Mulally’s machine’s cut a new deal with the United Auto Workers (UAW), scaled back production and launched some new whips. During today’s announcement, Big Al proudly pronounced the new new turnaround a success. “Each of our automotive operations is improving, and we are encouraged by the progress.” That makes one of us.

Ford Death Watch 40: Mercury R.I.P.

Steven Lang — Tue, 08 Jan 2008 17:17:08 +0000

Four vehicles. That’s all you’ll find on Mercury's web site. If you’re as “lucky” as I am, Mercury will respond to your browsing by asking if you want to spend five minutes on a questionnaire. Say what? Asking for five minutes of your customer's time before you even show them your products? That isn’t the smartest thing to do to a spam-weary public. Then again, once you click on the word "No" and return to the actual products, you begin to realize that the entire Mercury product line represents the brand’s not-so-smart existence.

Ford Death Watch 39: Bah Humbug

Matthew Neundorf — Thu, 20 Dec 2007 13:17:07 +0000

It’s beginning to look a lot like Christmas; at least in Dearborn. Ford has reinstated merit raises for their white collar workers. Bonuses for its blue collared brigade are under consideration. Ford’s global manufacturing guru Joe Heinrichs figures “it’s important to reward people for doing the right thing.” Which is… three straight quarters of besting Wall Street’s paltry projections and slowing the Way Fordward’s cash burn. With the long anticipated sale of Jaguar and Land Rover only days away, it would seem that Mulally’s machine is running smoothly. Yes Virginia, there is a Santa Claus.

Ford Death Watch 38: Wiggle Room

Robert Farago — Tue, 06 Nov 2007 15:07:11 +0000

So Ford and the United Auto Workers (UAW) have hammered-out a new deal. Our fave sage Daniel Howes over at The Detroit News hailed the tentative agreement with the usual rhetoric: new paradigms, inflection points, fresh thinking, transformation and general bullishness. Yes, well, as over ten thousand Chrysler union workers recently discovered, there’s many a pink slip between the cup and the lip. Make no mistake: there are details bedeviling this Ford agreement. And the union rank and file are heading into the ratification process with their eyes wide open.

Ford Death Watch 37: Is Mulally Making the Grade?

William C Montgomery — Fri, 07 Sep 2007 16:05:29 +0000

The House that Henry Built was close to ruin when Junior Bill fell on his sword to bounce Boeing’s best to The Blue Oval. One year later, BusinessWeek (BW) gives FoMoCo CEO Alan Mulally an A-. And yet the reaper’s blade still hangs over Dearborn. And Mulally still toils to prove that his first year’s effort was worth $133.55 per minute (based on a 60 hour work week). Meanwhile, surveying the lay of the land post-Mulally, we reckon BW’s senior correspondent had more than sweetened tumbâk in his hookah when he penned this report card.

Ford Death Watch 36: What Profit a Man?

Matthew Neundorf — Tue, 07 Aug 2007 11:45:11 +0000

Last week, Ford exceeded Wall Street’s expectations by reporting a profit. A profit! As in, the American automaker took in more money than they spent! Pundits unfamiliar with the fact that Ford carries around so much debt it makes Atlas' planetary burden seem like a small backpack, oblivious to the missing ten foot pole marks on Ford dealers' inventory, hailed the news as a sign that the only Way Fordward is up. You know you need to worry when the CEO himself feels obliged to warn stockholders and camp followers that billion dollar losses lie directly ahead. And indeed they do.

Ford’s Death Watch 35: Everything Must Go

Samir Syed — Sun, 17 Jun 2007 11:30:21 +0000

Desperate times, desperate measures. Ford Motor Company has retained the services of three investment banks to advise it on the sale of Jaguar, Land Rover and, perhaps, Volvo. Flogging the remains of the Premium Automotive Group (post-Aston) will plug a giant hole in the automaker's balance sheet, give FoMoCo a cash injection to sustain short-term operations and fuel its do-or-die turnaround plan. As Stan Laurel would say, well, here's another nice mess you've gotten me into.

Ford Death Watch 34: PAG Pegs Out. Who will buy Jaguar, Land Rover and Volvo?

Michael Martineck — Fri, 15 Jun 2007 15:51:27 +0000

Adoption is a lengthy process. Prospective parents must submit to all kinds of scrutiny to prove themselves suitable child care providers. And for good reason. You can’t give ‘em back, as they say. Not so in the business world. Ford has officially put siblings Jaguar and Land Rover up for sale, with some sources placing Volvo’s custody in question. The move ends nearly a year of speculation, or nearly two decades of speculation, depending on how prophetic you’ve been.

Ford Death Watch 33: Good, Fast, Cheap or None of the Above?

Michael Martineck — Thu, 07 Jun 2007 16:32:19 +0000

Last year, the Ford Motor Co. lost $12.7b. The company is carrying $188b in debt. Its bonds are non-investment grade. It’s got to the point where less than one in ten American analysts recommends the former blue chip stock. In fact, by any measure of financial health, Ford is knocking on death’s door. So why did Alan R. Mulally leave Boeing to heal The Blue Oval-- aside from the $45m plus transferred into his bank account? Mulally is an engineer, a man who can’t resist taking something apart and trying to put it back together better. Or, if you prefer, Humpty Dumpty.

Ford Death Watch 32: Taking Stock

Matthew Neundorf — Sun, 13 May 2007 11:26:00 +0000

At Thursday's annual Glass House Gang get-together, eight of ten shareholder proposals got the axe. The kyboshed suggestions include a mandate to disclose the identities of all execs collecting upwards of $500k, another giving 10 percent stakeholders the ability to call stockholder meetings, and a directive asking for a strategic plan for Ford’s future health care liabilities. The Ford family also fell under attack via a motion to remove their Class B stock “super- ~~vetoing~~ voting” powers. It isn’t the first time that the Ford family’s control has come under shareholder scrutiny, but that plebiscite perished too, albeit by a smaller margin than ever before.

Ford Death Watch 31: David Mamet’s Hair Splitting TV Ads Miss Their Mark

Matthew Neundorf — Thu, 26 Apr 2007 16:15:34 +0000

In 1997, Kiwi film director Lee Tamahori brought playwright David Mamet’s words to the silver screen in an Alec Baldwin/Anthony Hopkins vehicle called The Edge. Ten years later and David Mamet lensed an ad campaign for a crossover utility vehicle by the same name. Mamet’s trademark dialogue takes center stage, pitting the Blue Oval’s most important cute-ute against the upscale competition from Germany (BMW X5) for speed and Japan (Lexus RX350) for quietness. Does Mamet’s champion edge out its pricier rivals? Duh.

Ford Death Watch 30: Executive Compensation

Matthew Neundorf — Thu, 05 Apr 2007 17:04:36 +0000

In the first three months of his employment, Ford CEO Alan Mulally earned himself a cool $28.2m. So how’s the high flying ex-Boeing exec doing in his campaign to save the embattled automaker? According to Big Al, “it’s going pretty well." He’s “reduced complexity” (i.e. paid bureaucrats to leave), sent Aston packing, unloaded the first of thirteen surplus-to-requirements Visteon plants and started to make good on cost savings targets. On the income side of the ledger? Not so hot.

Ford Death Watch 29: Funkmaster Flex Expedition? Shelby GT-500KR? Ford F-150 Foose Edition? Pimp My Nothing

Robert Farago — Mon, 02 Apr 2007 15:39:22 +0000

"We are absolutely going to do what it takes to keep our product fresh and keep it relevant in the market.” Now THAT’S what I’m talking about! A Ford exec making a public commitment to ongoing excellence. No more cut and run. No more vehicles dying on the vine or losing out to some new “flavor of the month.” Oh wait. Ford's truck marketing manager wasn’t talking about keeping it real for the core models. Ben Poore was celebrating the company’s decision to offer a Chip Foose edition F150. Oh dear.

Ford Death Watch 28: Alan Mulally Wants to Be Where the People Are

Robert Farago — Sat, 31 Mar 2007 14:42:13 +0000

Back in ’98, the BBC aired a fly-on-the-wall documentary series called “Back to the Floor.” A camera crew followed five British bosses who left the relative safety of the executive suite for a week's labor with downtrodden workers at the sharp end. When the show migrated to America’s PBS, it lacked the undercurrent of class warfare that gave Auntie Beeb’s original its zing. When Ford CEO Alan Mulally recently revived this scenario by playing car salesman, the results were equally dire.

Ford Death Watch 27: Staking the Raises

Matthew Neundorf — Fri, 02 Mar 2007 17:08:37 +0000

February’s sales figures are in. Ford continues to sing the blues. While FoMoCo’s spinmeisters invite us to savor the consistency of their domestic market share and clock their lessening fleet business, The Blue Oval’s retail sales are still slumping. The situation hovers somewhere between serious and six feet under. What’s worse, the domestic automaker’s execs seem bound and determined to shoot themselves in the feet, repeatedly. First, the numbers…

Ford Death Watch 25: The Transmogrification of the Taurus

Matthew Neundorf — Wed, 07 Feb 2007 15:43:51 +0000

Sin City’s casinos are designed to create the illusion of chance. Vegas’ neon lights, chiming bells and piped-in oxygen keep hopefuls dazed, confused and distracted while their dollars are vacuumed from their wallets. And yet all the neon in Nevada couldn’t distract the Ford floggers at the recent National Automobile Dealers Association (NADA) convention. The Blue Oval’s metal movers and shakers hit town looking for one thing: assurances that FoMoCo’s new, new turnaround will work. They got nada.

Ford Death Watch 24: Jaguar: Momento mori

Robert Farago — Tue, 30 Jan 2007 02:00:20 +0000

Once upon a time, a dapper German auto exec named Wolfgang Rietzle dreamed of running BMW. When the Bavarians gave Wolfie the cold shoulder (twice), he left their employ to build his own, even larger fiefdom: the Premier Automotive Group (PAG). Technically, Ford owned Wolfie’s farrago of upmarket car brands. But as far as Wolfie was concerned, “his” five luxury marques vould vun day rule ze vorld! Three years later, Bill Ford tried to fail Wolfie upwards. The mad professor banked his bucks and blew town, leaving a Frankensteinian monster for Ford to fix. Yesterday, Ford said it lives! I say, grab your pitchforks!

Ford Death Watch 23: There are 12k parts in an average Ford. This is a story about four of them.

Bob Elton — Mon, 22 Jan 2007 17:04:21 +0000

Enthusiasts don’t tend to wax eloquent about seat tracks. They’re the automotive equivalent of the sliding rails that support file cabinet drawers when you pull them all the way out. A vehicle’s front (and occasionally rear) seats slide forward on them, they slide backwards. Done. No surprise then that seat tracks aren’t mentioned in commercials. They’re never part of a car salesman’s spiel. And there’s no seat track website or blog. Yet seat tracks are a key part of any car, pickup, minivan, SUV or CUV.

Ford Death Watch 22: The Spin Starts Here

Matthew Neundorf — Fri, 05 Jan 2007 18:12:00 +0000

The Detroit News recently enlisted J.D. Power and Associates to help explain Detroit's pressure drop, and figure out how Ford and the other 1.5 can stop the rot. After gathering data from 500 survey takers registered on an opinions-for-cash website called Opinion Outpost, The Power That Is concluded that the domestics have their work cut out for them. (Surprise!) Only 40% of this infinitesimal sample of alleged intenders (‘cause if they weren’t intenders they wouldn’t get paid for the survey) would consider buying a domestic car, due to concerns about reliability, quality and fuel economy.

Ford Death Watch 21: We’re Number Three!

Matthew Neundorf — Tue, 26 Dec 2006 10:34:54 +0000

The average American car buyer is completely unaware of Ford’s financial troubles. They don’t know Alan Mulally from Bertie Ahern. They don’t know that Ford’s taken out The Mother of All Bank Loans, mortgaging everything up to and including the company logo. They don’t know the automaker’s got three years to avoid annihilation. But the day Toyota overtakes Ford as America’s number two carmaker, the U.S. consumer will get a multi-media wake-up call. The psychological damage will be profound. Not that Ford sees it that way.

Ford Death Watch 19: Ford By Name, Four’d By Nature

Matthew Neundorf — Fri, 08 Dec 2006 16:57:21 +0000

November’s sales figures are out, and FoMoCo’s treading unfamiliar waters. For the first time since, well, ever, Dearborn’s darlings find themselves off the sales podium. The General, Toyota and both parts of the DCX German-American hybrid surpassed last year’s sales totals. Despite pre-Christmas gains north of the border, Ford’s U.S. sales sank nearly 10%. Their declining market share dropped them into fourth by total sales volume. “This is an area, frankly, of disappointment,” George Pipas, Sales Analysis Manager for Four’d pronounced. “We had our sights set higher.”

Ford Death Watch 18: Betting the Farm

Matthew Neundorf — Wed, 29 Nov 2006 11:38:34 +0000

To combat the commonly held (if accurate) belief that FoMoCo’s product pipeline is drier than a Vermouth-free martini, FoMoCo recently unveiled the “Showroom of the Future.” Ford ushered retirees, clock punchers and white collar grunts into the Cobo Arena for a glimpse at what may (or may not) be the “most important new Ford.” While they weren’t invited to sample Ford’s four-wheeled corporate Kool-Aid, the Detroit News reported that the attendees were suitably impressed. It may not have been enough to take the edge off the Edge’s delayed debut, but it did reveal a bit more about Ford’s immediate prospects.

Ford Death Watch 17: Dealer or No Dealer?

Matthew Neundorf — Mon, 13 Nov 2006 17:01:35 +0000

As bad as Ford’s third quarter results (version 1.0) were for Dearborn’s darlings, the future doesn’t look much better. Ford’s Chief Financial Officer Don Leclair has publicly admitted that he expects the automaker’s fourth quarter to look like the one that crushed the Arizona Cardinals in week six: a complete and utter disaster. What’s more, Leclair has also acknowledged that Ford’s production cuts crush any hopes of financial rebound for at least the first half of 2008-- no matter how their cross-border crossover fares in the marketplace. So, is it time to panic?

Ford Death Watch 16: Bold Snooze

Robert Farago — Mon, 06 Nov 2006 03:30:27 +0000

Last Friday, JWT invited me to the Big Apple to discuss their Bold Moves internet documentary series. The ad agency wanted to interview "one of Ford’s fiercest critics" about their client’s decision to “pull back the curtain” on their turnaround efforts. Although JWT was only paying my expenses, I was inspired to make the journey by Mark Fields’ parting words in the opening episode: “the American people love the truth.” This is perfectly true and completely beside the point. The question is, does Ford love the truth?

Ford Death Watch 15: Those who do not learn from history

Bob Elton — Wed, 01 Nov 2006 19:40:06 +0000

The new CEO of the company walked into the boardroom. The mood was grim. Recruited from another company in another industry just a few months previously, he carried bleak news. The automaker had just reported the largest third quarter loss in recent history. Their most profitable products, which had been flying off dealer lots, were dead in the water. Strikes at suppliers had crippled production of the few products that sold well. Market share was evaporating, and operations in Europe were drowning in red ink. Worst of all, recent downgrading of their bonds had hurt the profitability of their all-important finance unit, which had underwritten the car business for years. It was time for some bold moves.

Ford Death Watch 14: The Race is On

Robert Farago — Tue, 24 Oct 2006 15:11:32 +0000

Is there any doubt that that Ford is heading for Chapter 11? Sure. There are plenty of auto industry eggheads and company officials who continue to believe that FoMoCo has what it takes-- or will have what it takes at some point in the near to distant future-- to pull out of its current corporate nosedive and return to greatness. OK, profitability. Um, how about market stabilization? Actually, at this point, staying out of Chapter 11 would be something of a victory. Meanwhile, Monday was Dia de los Muertos for The Blue Oval.

Ford Death Watch 13: Ford Feels Edgy

Matthew Neundorf — Fri, 20 Oct 2006 14:41:41 +0000

Star Trek based many of its best episodes on simple homilies. In “The Lights of Zetar” (Star date 5725.3), Memory Alpha is attacked. Creatures from the planet Zetar concoct an energy storm that ravages the planetoid. The Federation’s main computer database, containing all of the cultural and scientific data they’ve ever gathered, goes fubar, and with it, the Federation. What did they expect? To put a little Yoda spin on it, into one basket all eggs should not go. OK, now, Earth date October 16, 2006. Dearborn rolls out the Ford Edge. See what I mean?

Ford Death Watch 12: By the Numbers

Matthew Neundorf — Fri, 06 Oct 2006 16:46:43 +0000

First the good news. For the first time in eight long months, George Pipas, Ford's ~~man in the crosshairs~~ Manager of Sales Analysis, could deliver glad tidings to anxious stockholders and stakeholders. September retail and fleet results reveal that sales of Ford’s cars and truck were up when compared against the same month in '05. Although FoMoCo’s sales increases didn’t come anywhere near Toyota’s dramatic advance, the Detroit-based automaker bested cross-town rivals GM and Chrysler by a considerable margin. And the hits keep happening.

Ford Death Watch 10: Wielding the Culture Club

Robert Farago — Wed, 27 Sep 2006 20:23:36 +0000

This morning, I met with a management consultant who works for The Big Two Point Five. Back before the recent “unpleasantness,” Ford’s top brass engaged the consultant to tackle a marketing issue crucial to FoMoCo’s future. Department heads assembled. Despite overlapping fiefdoms and wildly different ideas for progress, the execs hammered out an innovative four-point strategic plan. Consensus was achieved. And then… nothing. Not one of the points was ever implemented. “These guys are scared to death of change,” he sighed. “Ford’s culture is always working against them.”

Ford Death Watch 9: Capacity Utilization is Job One

Robert Farago — Wed, 20 Sep 2006 16:49:18 +0000

Auto industry analysts have cast their beady eyes on The Blue Oval's third turnaround plan, and they don’t like what they see. Despite the fact that Billy and Alan and Mark have mashed the gas on Ford’s downsizing, there are ominous rumblings that the cuts aren’t deep enough. The assertion is almost as shocking as the cuts themselves. If asking all of your 75k union workers to piss off isn’t enough, if shuttering sixteen plants doesn’t cut the financial mustard, well, is there any end to this death spiral? Only the obvious one.

General Motors Death Watch 91 / Ford Death Watch 8: GM and Ford To Merge?

Robert Farago — Mon, 18 Sep 2006 11:45:42 +0000

The idea that Ford and GM will merge or, as they say these days, “form an alliance” is yet another sign that we’re reaching the End of Days, Detroit style. Sorry, haven’t you heard? This morning’s Automotive News quotes proverbial “senior executives” and “sources familiar with the talks” as saying GM contacted Ford shortly after GM investor Kirk Kerkorian invited Nissan to crash The General’s going away party. Or was it the other way around? Automotive News is wildly, absurdly, irresponsibly vague on the whole story. Suffice it to say, any merger between America’s Number One and Number Two automakers would kill both of them.

Ford Death Watch 7: Jump Down Turnaround

Matthew Neundorf — Sat, 16 Sep 2006 13:53:52 +0000

Another day, another turnaround plan. For those of you keeping score, Ford’s “Way Forward 2.0” is actually the third version in four years. In terms of strategy, the new, new plan holds few surprises; FoMoCo is simply super sizing their right-sizing program. On the credit side of the ledger… nothing much. New models still won’t hit the streets anytime soon. But the Street has hit Ford. On “Blue Friday,” Ford’s stock shed nearly 12% or $2b of its value. Investors and pundits alike are finally waking up to the fact that America’s number three automaker is in triage, with the crash cart standing by.

Ford Death Watch 6: Is Alan Mulally Billy Ford’s Human Shield?

Matthew Neundorf — Mon, 11 Sep 2006 15:38:55 +0000

Thirty-five million dollars, the keys to the corporate jet and a Detroit McMansion is a pretty good compensation package for any aspiring executive. Obviously, if freshly-minted Ford CEO Alan Mulally reverses The Blue Oval’s declining fortunes, it will be shareholder money well spent. If, however, Mulally turns out to be too little CEO too late, his paycheck and parachute will mark the final chapter in a sad story of Ford family interference and/or mismanagement. So what say you Billy Ford? The “biggest problem facing Ford today is a lack of confidence.”

Ford Death Watch 5: Can Mulally Get Ford to Straighten Up and Fly Right?

Robert Farago — Tue, 05 Sep 2006 23:15:42 +0000

Was he pushed or did he jump? Either way, Billy Ford’s resignation as CEO of the family firm is yet more proof that The Blue Oval’s in big trouble. Not that he’s been trying to hide the fact. In his Newsweek interview, Billy telegraphed his intention to fall on his sword: “I've always said that titles are not important to me... What's important is getting this company headed in the right direction." And the new man is… Alan Mulally, Boeing’s now former Executive Vice President. Not to coin a phrase, one wonders if Billy told the board, “If it’s not Boeing, I’m not going.”

Ford Death Watch 3: With Friends Like These…

Matthew Neundorf — Thu, 17 Aug 2006 12:56:47 +0000

It’s been said that walking on quicksand with helium balloons will keep you from going under. Now that The Blue Oval has finally realized that the sands have shifted beneath its feet, there are plenty of people selling the automaker balloons. The United Auto Workers (UAW) has publicly pledged to help Billy’s Ford’s boys “any way they can.” Michigan Governor Jennifer Granholm has proclaimed her willingness to sacrifice voters’ taxes to keep the Wolverine State’s assembly lines rolling. At the same time, Ford is contemplating radical solutions: cutting dealers, selling assets, forming alliances. Is Ford finding buoyancy or grasping at straws?

Ford Death Watch 2: The Way Fordward

Matthew Neundorf — Wed, 09 Aug 2006 13:59:16 +0000

Last month, Toyota sold more vehicles in North America than Ford. Understandably, The Blue Oval Boys have refrained from public hand-wringing over their displacement in the US sale charts. But there is no underestimating the development’s damage to Ford’s corporate psyche. Newbie CEO Mark Fields was already deep into crisis management. Now, suddenly, it’s obvious that Ford’s turnaround cannot rely on pushing (deeply discounted) products and hoping and waiting for a Hail Mary pass. A brand new plan is set to be hatched at the end of the third quarter. The way forward is now in fast forward.

Ford Death Watch 1: Desperate Times

Matthew Neundorf — Thu, 03 Aug 2006 20:47:50 +0000

Although GM’s woes are increasingly well known, the House of Ford is also in dire straits. The Blue Oval’s credit has been downgraded almost as often and deeply as The General’s. FoMoCo’s products-- a truck-heavy mix in a time of fuel conscious fervor-- languish on dealers’ lots with equal abandon[ment]. Both companies have too many lackluster products, confused brands and mainline dealers. In fact, other than the size of their relative problems, the chief difference between GM and Ford has been the Blue Oval’s bluster, bold moves and all.