I twisted no words. I didn't have to. You got my drift; Ford ****** up.
Ford makes a very decent profit yet Ford's shareholder value is in the toilet. That's what got Ford all shook up in the first place. So Ford announces the death of its low-margin vehicles in order to beef up profits. Then Ford announces investment into new low-margin vehicles. Dearborn can't make up its mind. Tennis anyone?
If Ford sold their low-margin cars at sufficient sales volumes they would not have been axed. People vote with their dollars. Customers will not buy a sloppy product when the competition offers something better and more exciting at the same price point. That's business 101.
Wings, as an engineer, I thought you would be a car guy not a bean counter. Yet you seem to be all too eager to toe the party-line, whatever it happens to be this week. You are a Ford employee; I get it. I just happen not to have my eggs in that basket so I can say what I wish.
It is quite possible that Ford did **** up, I have said this before. Time will tell for sure, and killing the cars thing was a cat that got out of the bag, not exactly something they announced internally. But I happen to agree that if they kept on the same path without a bit of radical change, then no change would come and shareholder value needle would not budge much, if at all. This same path would assume that pumping millions into making the Fiesta and Focus the best products in the world, yet margins remain exactly where they are, all while volumes continue to drop. Where is the logic in that? Gone today is the thinking that you offer them a cheap product, and keep them coming back with bigger, higher margin products as they grow families, etc. People switch brands like underwear. So again, that argument is up in smoke too. And let's not forget how consumers today have so many transportation options, to where kids don't even hurry to get their drivers licence - especially if they have an Uber app that takes them where they want to go with no investment. And finally, and this IMHO is the biggest factor that is already transforming Ford internally - electrification and autonomy. A complete upheaval is beginning to take place internally, driven by what our showroom will look like in just a few years from now.
Anyway, I have no problem calling out Ford when they **** up. I do think that Fusion should remain a bit longer than planned, and not including Focus Active was a mistake.....but these again are just opinions. WTF do I know? Ford clearly looks at the long game, where I don't, so there is that too.
meh, we are all just prognosticating here, I respect everyone's opinion who takes the time to share it, but I do have mine too.