Is Ford Motor Company Doomed?

Discussion in 'General Chat' started by andheresjohnny, Dec 4, 2006.

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  1. #1
    I can't see Ford pulling out of this one.

    Last week they had to mortgage the entire U.S. part of the business just to get a loan big enough ($18 billon) to last 3 more years IF NOTHING ELSE GOES WRONG.

    Then they say they expect to burn through $17 billion of that money through 2009 ... around half of that next year.

    The 38,000 early buyouts and all the plant closings will certainly reduce costs, but it does nothing for the fact that they keep losing market share ... they just aren't making cars that people want. Nor does it help at all with improving how they make the cars or purchase parts for the cars.

    And the resale value of their vehicles will still suck.

    I think they waited far too long to "right the ship". Now they're in the position that even if they do things right, any economic downturn at all with kill them off.

    Nice job guys.
     
    andheresjohnny, Dec 4, 2006 IP
  2. websiteideas

    websiteideas Well-Known Member

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    #2
    The need to get into electric cars or hybrid cars like Toyota. If oil spikes again, I think they could be in serious trouble.
     
    websiteideas, Dec 6, 2006 IP
  3. drig

    drig Peon

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    #3
    Ford will get it, but it will take time. Too much brand loyalty and market presence (not share) to be doomed. They may have to completely restructure and change their business model.
     
    drig, Dec 6, 2006 IP
  4. Pietercornelis

    Pietercornelis Guest

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    #4
    I'm with websiteideas on this one. Most cheap cars are from Japan/Korea nowadays, US producers should focus on modern hybrid vehicles, since their country is the one most addicted to oil, and is technologically advanced. In a few years, China will be producing lots of cheap cars, which are oil-powered. These are going to be a lot cheaper then Ford's, so only with a lot of new technology can they make it.
     
    Pietercornelis, Dec 6, 2006 IP
  5. Bison

    Bison Active Member

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    #5
    I don't thinks its fair to say that they aren't making cars that people want. For the past ten years all people have wanted was gas guzzling SUV's and trucks. Thats what the people wanted so thats what Ford gave them. And they sold a lot of them.

    Now in the blink of an eye, America is conscious of how much fuel they burn because of the cost. I think the only thing Ford can be faulted for is not planning for just such an occurrence. Its a repeat of the seventies. I just hope they don't rush some junky economy model to the dealers. Remember the Pinto?

    Bison
     
    Bison, Dec 6, 2006 IP