
 |
|
June 19, 2013
June 12, 2013
Stephanie Hanes: Little girls or little women? The Disney princess effect
Fred Weir: In tweak to US, Russia would 'consider' asylum for Snowden
June 10, 2013
The Kosher Gourmet by Anjali Prasertong: A tart filling so good it might not make it to the crust
June 5, 2013
John Rosemond: Mom, Dad: Talk More and listen less
Kristen Chick: Egypt court sentences 43 pro-democracy workers to prison
June 3, 2013
Molly Hennessy-Fiske: Military judge to consider letting Fort Hood shooting defendant represent himself
May 29, 2013
Andrew Connelly and Helene Bienvenu: The Little Synagogue that Refused to Die
May 24, 2013
Rabbi Tzvi Hersh Weinreb: When I didn't so 'humbly disagree'
May 22, 2013
John Thorne:
They launched the 'Arab Spring' but now yearn for the good old days of a strongman
May 20, 2013
Richard A. Serrano: Is Meir Kahane's assassin now a changed man?
Melissa Healy: Genetic copies of living people from embryos no longer science fiction
Jewz in the Newz by Nate Bloom : Jews Inducted into Rock Hall of Fame; Anton Yelchin co-stars in New "Trek" film; Kutcher (but not Kunis) visits Israel; Jewish TV Star Praises Jewish Rap Star
The Kosher Gourmet by Cathy Pollak: WARNING: This WALNUT CAKE WITH PRALINE FROSTING, perfect for afternoon coffee, is addicting
|
| |
Jewish World Review
Dec. 25, 2006
/ 4 Teves, 5767
Ford tries to outrace the repo man
By
George Will
| 
|
|
|
|
http://www.JewishWorldReview.com |
DEARBORN, Mich. If Alan Mulally, Ford Motor Co.'s chief executive, is looking for fresh words to inspirit his troubled company words to replace "The Way Forward," which rang hollow as Ford slid further backward he might try: "Lay off the cheeseburgers, America you're killing yourself, which is your business, but you're also killing Ford, which is my business." That exhortation is not pithy but is oddly pertinent.
The average weight of American men (191 pounds) and women (164 pounds) has increased 25 pounds since 1960. And according to one study, in 2003 Americans' 223 million cars and light trucks burned an extra 39 million gallons of fuel for every additional pound of passenger weight. So Americans are using almost a billion gallons of gasoline more each year than they would if they were as (comparatively) svelte as they were in 1960. Because Ford is more a truck company than a car company (its big moneymakers are F-Series pickups, and sport-utility vehicles such as the Explorer are classified as trucks), it has been hit especially hard by changing consumer preferences produced by high gasoline prices. That is one reason Ford lost $5.8 billion in the third quarter.
Mulally, 61, is frequently described as having "boyish" looks and pep. But it has been only three months since William Clay Ford Jr., Henry's great-grandson, replaced himself with Mulally (Ford remains the company's executive chairman), who is going to find this an aging experience.
Already he has taken one of the great gambles in the history of American business, one perhaps unavoidable if Ford is to avoid bankruptcy. Ford has taken $23 billion in loans, most of that sum secured by almost everything Ford owns physical assets, patents, trademarks. The market value of Ford's outstanding stock is $15.4 billion. "The data," Mulally serenely acknowledges, "say we're going out of business."
Perhaps he is serene because he has seen, and seen off, conditions that were, if not worse, really bad. After Sept. 11, when the commercial airline market froze, Mulally, who then was at Boeing, oversaw the downsizing of that company's payroll from 127,000 to 52,000.
| FREE SUBSCRIPTION TO INFLUENTIAL NEWSLETTER |
| Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". HUNDREDS of columnists and cartoonists regularly appear. Sign up for the daily JWR update. It's free. Just click here. |
|
Still, the most difficult military maneuver is a retreat under fire, because it can become a rout, and the same is true of a corporate contraction. However many people Ford hires at reduced wages to replace some of the approximately 38,000 United Auto Workers employees who have agreed to buyouts, many of them will never have built a car. This could mean quality problems, which could further depress Ford's market share, driving a downward spiral.
Mulally's vision for Ford is forward-looking nostalgia. He wants to restore Ford to the role it had in "the middle America that we grew up with." But to "spiff up the blue oval" Ford's trademark he must market cars designed on the assumption that gasoline prices "are staying up." He talks about the need to "take the hard decisions" and "rationalize our product family" with a "simplified product portfolio." He stops short of talking yet about scrapping brands. But why is the company still making the Mercury, the average age of whose buyers is 55? Perhaps because it cost General Motors $1 billion payments to dealers, etc. to eliminate the Oldsmobile brand.
Mulally says production efficiencies can solve half the company's economic problem. That will not suffice unless Ford efficiently produces exciting products. Mulally, a quick study, already has a rudimentary grasp of Detroit-speak: He says Ford must develop new products "with curb appeal the 'wow' factor."
But in 2001, with much fanfare, Ford rolled out a new version of a 1950s success, the Thunderbird. It was underpowered, handled badly and is no longer in production. Recently, the company heavily advertised the Lincoln Zephyr. But now it is called the MKZ. Why? This is the behavior of a company whose left hand does not know what its other left hand is doing.
Seventy percent of the people who go through O'Hare International Airport, Mulally says, are not going to Chicago. His point is that a snapshot of customers moving targets does not tell you where they are heading. Henry Ford, according to Mulally, said that if, when he founded his company, he had asked potential customers what they wanted, they would have said faster horses. Mulally has bet the company on its ability to develop "curb appeal" products that people do not yet know they want and to develop them before the company, which burned through about $6 billion in the last two quarters of 2006, burns the rest of its borrowed cash.
Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
George Will's latest book is "With a Happy Eye but: America and the World, 1997-2002" to purchase a copy, click here. Comment on this column by clicking here.
Archives
© 2006 WPWG
|
|

Arnold Ahlert
Mitch Albom
Jay Ambrose
Michael Barone
Barrywood
Lori Borgman
Stratfor Briefing
Mona Charen
Linda Chavez
Richard Z. Chesnoff
Ann Coulter
Greg Crosby
Larry Elder
Suzanne Fields
Christine Flowers
Peter Funt
Frank J. Gaffney
Bernie Goldberg
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Argus Hamilton
Victor Davis Hanson
Betsy Hart
Ron Hart
Nat Hentoff
A. Barton Hinkle
Jeff Jacoby
Paul Johnson
John Kass
Jack Kelly
Ch. Krauthammer
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Ann McFeatters
Dale McFeatters
Dana Milbank
Jeanne Moos
Dick Morris
Jim Mullen
Deroy Murdock
Judge A. Napolitano
Bill O'Reilly
Clarence Page
Kathleen Parker
Star Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Sharon Randall
Michael Reagan
Robert Robb
Cokie & Steve Roberts
Heather Robinson
Debra J. Saunders
Martin Schram
Greg Schwem
Culture Shlock
David Shribman
Roger Simon
Lenore Skenazy
Michael Smerconish
Thomas Sowell
Mark Steyn
John Stossel
Cal Thomas
Dan Thomasson
Bob Tyrrell
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
Cathy Young
Mort Zuckerman

Eric Allie
Robert Arial
Chuck Asay
Baloo
Nate Beeler
Lisa Benson
Chip Bok
Dry Bones
John Branch
Daryl Cagle
Patrick Chappatte
John Cole
Paul Combs
J. D. Crowe
John Darkow
Bill Day
John Deering
Sean Delonas
Brian Duffy
Everything's Relative
Randall Enos
Mallard Fillmore
David Fitzsimmons
Glenn Foden
Jake Fuller
Bob Gorrel
Walt Handelsman
Joe Heller
David Hitch
Jerry Holbert
David Horsey
Lee Judge
Steve Kelley
Mike Keefe
Jeff Koterba
Dick Locher
Chan Lowe
Jimmy Margulies
Gary McCoy
Rick McKee
Jack Ohman
Jeff Parker
Milt Priggee
Michael Ramirez
Rob Rogers
Steve Sack
Bill Schorr
Drew Sheneman
Kevin Siers
David Ray Skinner
Jeff Stahler
Scott Stantis
Danna Summers
Gary Varvel
Kirk Walters
Christopher Weyant
Larry Wright
Dan Wasserman
Adam Zyglis

Tech Q&A
Mr. Know-It-All
Ask Doctor K
Richard Lederer
Frugal Living
On Nutrition
Bookmark These
Bruce Williams
|