Ford says product first, "you can't cut your way to profitability"
by Sam Abuelsamid on Nov 14th 2008 at 9:39AM 
It's been said that "you can't cut your way to profitability." This is especially true in product-related businesses like the auto industry. It doesn't matter how low your costs are if you don't have desirable products that people want to buy. Ford CEO Alan Mullaly appears to understand this maxim. In spite of financial difficulties, so far Ford has not delayed any new product programs. The retooling of former truck factories to produce the Fiesta, next generation Focus and other small and mid-sized cars is proceeding full speed ahead. Ford spokesman Alan Hall was asked at a meeting about adding extra production capacity for the new Fusion in the event that sales take off after it's introduction. Hall said that the factories that are being re-tooled are being switched flexible manufacturing systems that will allow Ford to adjust quickly, much like Honda has done recently.
This contrasts sharply with General Motors which has gone into cash conservation mode and delayed virtually every new product program except the Volt. Unfortunately, given GM's dwindling cash reserves, they may have no other viable option. Delaying new products is not desirable, but if bills can't be paid, the products won't matter because no one will supply parts. The big question is how long will Ford be able to persist before it has to start cutting?
Gallery: 2009 Ford Fiesta Zetec S
Gallery: 2009 Ford Fiesta
[Source: Green Car Advisor]
Reader Comments (Page 1 of 1)
Beavker 10:05AM (11/14/2008)
So Ford? How about that Hi-Pa Converted F-150 then? You gonna build that? A truck that get super fuel economy? Who'd want that? Remove your current gas guzzling ICE and make every truck you sell using this platform. Costs go down, and you have a 'revolutionary' vehicle. You would be ahead of the rest, unlike most American Firms (especially regarding the Big 3).
Why isn't the comparably sized Taurus Crossover using the same Hybrid Drivetrain that has received rave reviews in the Escape? Can it be that difficult logistically and financially to retrofit/retool so these vehicles can take these more efficient drive trains? My old man could probably do it in his garage in a weekend. Why can't big firms?
Just a thought.
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BeGreen 10:45AM (11/14/2008)
First legitimate electric car coming to the market.
Safe, reliable and affordable.
Check it out............
Article:
http://planetgreen.discovery.com/tech-transport/electric-c100-vehicle.html
Video-You Tube:
http://www.youtube.com/results?search_query=begreenadvocate&search_type=&aq=f
BeGreen Advocate
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Sam Abuelsamid 10:49AM (11/14/2008)
Calling the C100 a legitimate electric vehicle is a stretch. Beyond the lead in the article it says that this is an NEV, limited to 25 mph.
Brn 11:52AM (11/14/2008)
Yes. Why doesn't Ford take their extremely limited resources and do what no other company can do?
There's not a magic switch. Ford is doing the right thing. They're taking a slow-n-steady approach. It's working and they deserve credit for that.
Brn 11:53AM (11/14/2008)
That was supposed to be a response to Beavker.
I'm not having good luck with the forums today.
Richard 4:08PM (11/14/2008)
Was that the top speed? How fast was that? 25 mph? Dang, my mom walks faster than that. I would be interested if you tell me you can crack the code and make that thing go at least 45mph. Cute care though. Very doable.
gorr 11:01AM (11/14/2008)
I told you, the entire market is shrinking. Only small limp cars with normal old ice engine from the 1900's era is remaining as hope for car manufacturers, LOL. Most of the car makers are old farts too that beginned building cars in 1900-1930 and never been able a single degree to improve for real their basic technology and they almost kill the planet with pollution and they blame big oil that fueled their stove engine for 100 years.
Peoples are waiting for the promises to stop pollution and have a sustainable car and manufacturers are unnable to provide it except eco-fueler but this site don't like eco-fueler, they just like theory like phev.
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John 11:22AM (11/14/2008)
"The big question is how long will Ford be able to persist before it has to start cutting?"
well, you don't have to run faster than the bear...
If GM actually folds other manufacturers will get sales that would have gone to them. Ford will probably get a sizeable piece, likely enough to be in really good shape.
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noz 1:10PM (11/14/2008)
Ironic words from a company that builds crap.
It's almost like GM saying they want to build quality products...what a laugh.
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gsolman6 1:40PM (11/14/2008)
I think Nissan and Carlos Ghosn would beg to differ.......
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noz 3:59PM (11/14/2008)
They can beg to differ all they want...Ford's $1.90 stock says it all.
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s Baker 8:06AM (11/18/2008)
"So Ford? How about that Hi-Pa Converted F-150 then? You gonna build that? A truck that get super fuel economy? Who'd want that? Remove your current gas guzzling ICE and make every truck you sell using this platform. Costs go down, and you have a 'revolutionary' vehicle. You would be ahead of the rest, unlike most American Firms (especially regarding the Big 3)." So are you going to buy it? Americans cheering the fact that an american company is in trouble. How pathetic, you must have drank too much of that liberal I hate america kool-aid!
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