Ford CEO Alan Mulally: U.S. Sales to Finish 2009 at 11 Million

Robert Farago
by Robert Farago

In case you hadn’t noticed, Ford is in a [familiar] race against the clock. Pre-economic meltdown, it mortgaged everything up to and including their logo. Under ex-Boeing exec Alan Mulally, the Blue Oval Boys have cut costs, improved efficiency, launched new products and gained relative market share. But Ford’s still a gi-normous company that takes in less money than it spends. The Department of Energy’s $10 billion twenty-five year, no-to-low interest loan didn’t hurt The Glass House Gang’s bottom line, but there’s only one way for Ford’s going to become profitable, to begin to pay off their debt and stave off bankruptcy: volume. Specifically, they need the U.S. auto market to recover, in a big way, for them, and quickly. So it’s no surprise that that’s exactly what CEO Alan Mulally says is gonna happen . . .

Mulally said there were signs of recovery and a sales pick-up was expected in coming years. Ford expects total U.S. industry sales of about 11 million in 2009, rising to 12.5 million in 2010 and to about 14.5 million in 2011.

Automotive News [sub] forgets to mention that the post-Cash-for-Clunkers sales result are on the catastrophic side of dire; they’re due to clock-in at an 8.5 million-ish Seasonally Adjusted Sales Rate. Absent another round of taxpayer-funded federal stimulus/subsidy action, Mulally’s [ongoing] prediction of a late 2009 uplift may be off by a good million sales.

As for the future . . .

“The fundamentals of economy coming back is the absolute key,” Mulally said. “It’s a slower recovery and we think it’s going to go with the economy.”

If Ford’s future rests on US economic fundamentals “coming back,” with unemployment set to top double digits and the deficit growing like kudzu in a high-speed film sequence, well, who’s zoomin’ who?

Robert Farago
Robert Farago

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  • Telegraph Road Telegraph Road on Sep 23, 2009

    th009: Fortunately for Ford stockholders, Farago's wonderful posts are daily.

  • J Sutherland J Sutherland on Sep 24, 2009

    Good luck to Ford getting CAW's Ken Lewenza to grasp the concept that the biggies like the Crown Vic are history and so is the future of the St. Thomas plant. Here's a guy who only starts to understand the power of a nuclear explosion when he sees the flash from a block away. Clearly they have bigger problems but Kenny still thinks it's 1971 when it comes to negotiations in UAW-CAW land.

  • 3-On-The-Tree 2014 Ford F150 Ecoboost 3.5L. By 80,000mi I had to have the rear main oil seal replaced twice. Driver side turbo leaking had to have all hoses replaced. Passenger side turbo had to be completely replaced. Engine timing chain front cover leak had to be replaced. Transmission front pump leak had to be removed and replaced. Ford renewed my faith in Extended warranty’s because luckily I had one and used it to the fullest. Sold that truck on caravan and got me a 2021 Tundra Crewmax 4x4. Not a fan of turbos and I will never own a Ford again much less cars with turbos to include newer Toyotas. And I’m a Toyota guy.
  • Duke Woolworth Weight 4800# as I recall.
  • Kwik_Shift_Pro4X '19 Nissan Frontier @78000 miles has been oil changes ( eng/ diffs/ tranny/ transfer). Still on original brakes and second set of tires.
  • ChristianWimmer I have a 2018 Mercedes A250 with almost 80,000 km on the clock and a vintage ‘89 Mercedes 500SL R129 with almost 300,000 km.The A250 has had zero issues but the yearly servicing costs are typically expensive from this brand - as expected. Basic yearly service costs around 400 Euros whereas a more comprehensive servicing with new brake pads, spark plugs plus TÜV etc. is in the 1000+ Euro region.The 500SL servicing costs were expensive when it was serviced at a Benz dealer, but they won’t touch this classic anymore. I have it serviced by a mechanic from another Benz dealership who also owns an R129 300SL-24 and he’ll do basic maintenance on it for a mere 150 Euros. I only drive the 500SL about 2000 km a year so running costs are low although the fuel costs are insane here. The 500SL has had two previous owners with full service history. It’s been a reliable car according to the records. The roof folding mechanism needs so adjusting and oiling from time to time but that’s normal.
  • Theflyersfan I wonder how many people recalled these after watching EuroCrash. There's someone one street over that has a similar yellow one of these, and you can tell he loves that car. It was just a tough sell - too expensive, way too heavy, zero passenger space, limited cargo bed, but for a chunk of the population, looked awesome. This was always meant to be a one and done car. Hopefully some are still running 20 years from now so we have a "remember when?" moment with them.