Future of Ford

Does it matter to any of the breast-beaters in this thread, entitled "Future of FORD," that Ford Motor Company is NOT asking the U.S. for a loan? In fact Ford -- William Ford that is -- has been drinking the Greenist Kool Aid for quite awhile now -- at the same time as his family's company has depended on 1,000,000 F-series sales per year to stay afloat and able to support those fat UAW pay packages and work rules and pensions.

One of the scary things about President Elect Obama -- and it's a long list -- is when he utters such nonsense as his demand that Detroit present the Government with a plan for a "sustainable" industry. What, 100+ years in business is not sustainability? More to the point, the scary part is what has come to be the received wisdom on Capitol Hill and the Mainstream Media: that Detroit's problems began when it let the marketplace drive its product planning, and chose not to walk away from lucrative SUV and pickup sales in order to design and build a lot of hybrids and other fuel efficient vehicles.

Prius annual sales have never exceeded 200,000. They had leveled off at 170,000 units in 2007, and Toyota was having to resort to financing deals and discounts to move the inventory. Only when oil shot up to $150/barrel earlier this year did sales take off again, such that

180,000 units had been sold by September or October. (We can expect sales to cool off again now that oil prices have come back down to earth.) The point being, that even if Chevy or Dodge or Ford had been selling a Prius clone for the past several years -- i.e., a vehicle substantially identical to the Prius in every way, including with respect to the irrational perceptions of the Greenist community -- the best they could have hoped for is a slice of that 170,000-200,000 units/year pie. The availability of additional brands in this tiny segment would NOT have substantially increased the size of the pie. And that pie is about 800,000 units short of what Ford needs from the disdained F-series products to break even (and to continue to support all those Democrat-friendly UAW rank-and-filers in the style to which they have become accustomed).

How can the Democrats and The Chosen One presume to dictate product decisions to Detroit when they are so totally ignorant of these simple truths? Of course, they can't. But they think they can. This fool Obama thinks he and his Harvard and Yale-educated Statists/Greenists know better than the marketplace what products Detroit should build if it wants to survive. This is what is scary, that they truly believe that they do know better.

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one80out
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But... but... but...

To hear GM tell it, the company will be out of business come January, unless they get this federal money. Whether they have been an ongoing sustainable business for the past 100 years or not, they would reportedly NOT be a sustainable business in the very near future.

Where would Chrysler be today, if not for the federal bailout (loan) back in the 80's?

I'm not even suggesting that politicians be able to dictate product development, just pointing out the obvious. Any industry, faced with highly unusual challenges, is subject to failure.

dwight

Reply to
dwight

News Flash, the only intrest the left has in you is as a useful idiot. They play to the worst in us to get them in the seat of power and once there, will make it unlawful to challenge them.

Reply to
columbotrek

The left?

dwight

Reply to
dwight

GM may cease to exist, but the American market for motor vehicles will not. Through the end of October we as a nation have bought 6,002,748 cars, 5,598,356 trucks, and 3,122,610 SUV/cross-overs. Source:

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(i.e. theWall Street Journal). In round figures, that's 14,600,000 vehiclessold in just ten months -- ten months which have included an historicoil shock and an historic financial meltdown. Somebody has got to build these units: if not GM and Chrysler, then Ford, Toyota, Nissan, Honda, et al. The market share currently covered by GM and Chrysler will simply be absorbed by the survivors.

There is also no reason to expect that most of the units needed to cover the GM and Chrysler market shares will not be built in domestic factories. If that expectation is correct, then the domestic industry will continue to exist, but with two major differences: the people in charge will not be the losers who have steered GM and Chrysler onto the rocks, and the products that they build will not be burdened with the $1,500 per vehicle legacy costs (pensions and retiree health care) and $500 per vehicle UAW labor premium that GM must excise from what could otherwise have been allocated to features and quality control or to profit.

Come to think of it, it would undoubtedly be a better value for the U.S. taxpayers for Congress to cancel the $25,000,000,000 loan package already granted to Detroit as CAFE compensation, and take that money and the additional $25,000,000,000 in straight bailout loans that GM and Chrysler are now seeking, and split it among Ford, Toyota, Honda, and Nissan with the proviso that the use the proceeds to buy up GM and Chrysler plants take over the production of the GM and Chrysler lineups, or at least those parts that make money. (Hint: that would not include the Cobalts and the Calibers -- OR the Volt.)

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Reply to
one80out

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