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Ford CEO's vow: We'll rebuild Lincoln lineup
Automotive News
Jamie LaReau, Charles Child and Peter Brown
November 8, 2010
Alan Mulally wears his heart on his sleeve. Well, sort of. He does wear the word "Ford" embroidered on the cuff of his white dress shirts.
"My dream is you'll walk away and believe I'm about accelerating Henry Ford's original position," Mulally says.
Since taking over as CEO in 2006, Mulally, 65, has been steering the automaker's turnaround. Ford Motor Co. has reduced its debt by $10.8 billion this year and has reported six consecutive quarters of profits despite a U.S. economy that's still recovering.
Staff Reporter Jamie LaReau, News Editor Charles Child and Publisher Peter Brown spoke with Mulally at his office in Dearborn, Mich., about what's next for Ford as it closes Mercury and looks to rebuild Lincoln.
If U.S. production growth continues, will we see an increase in Ford's North American production?
Yes. Clearly, based on the strength of the market coming back and our increasing market share, you just multiply one times the other and we'll be increasing the production. But we haven't given guidance out on how much for next year.
How will you compete in Europe if competitors keep producing too much and charging too little?
They have overcapacity, and they didn't move as aggressively as the United States. Over time, economics will dominate. We've seen some of our competitors with unsustainable practices on discounting. You just can't do that because you can't stay in business. So as we go forward, I am confident the economics will take over -- the fact that you have to run as a business as you said, which is exactly what's happening in the United States.
You have a good Fiesta, soon to have a new Focus, and gasoline is still $2.85 a gallon. Are you flexible enough to make what people want to buy, independent of gasoline prices?
Oh, absolutely. Remember, our plan is a full family of vehicles. In the United States, because we were not competitive on the cost side, we chose not to invest very much in smaller vehicles, and we focused on bigger SUVs and pickups. It wasn't because there wasn't a market. It just happened that the Japanese were in that market. Well, with our transformation, our new agreement with the UAW and our new cost structure, we can make money on cars in the United States.
Let's talk about plans to rebuild Lincoln. A lot of dealers say they want to see this new lineup before committing millions of dollars to store renovations. What are they telling you?
They are excited at the fact that Ford has chosen now to revitalize Lincoln as a luxury brand. This is again a continuation of the Ford plan because the Lincoln plan includes three pieces: You've got to have dynamite luxury vehicles, and we know how to do that; you need a distribution system where you have the Lincoln stores in the right places, where the luxury customers are in the United States; and the Lincoln stores that choose to go with us on this need to take the consumer experience to a whole new level to support the luxury customers.
We're going to do it collaboratively with them, and we're going to create a great brand again out of Lincoln
Full interview at the link
Automotive News
Jamie LaReau, Charles Child and Peter Brown
November 8, 2010
Alan Mulally wears his heart on his sleeve. Well, sort of. He does wear the word "Ford" embroidered on the cuff of his white dress shirts.
"My dream is you'll walk away and believe I'm about accelerating Henry Ford's original position," Mulally says.
Since taking over as CEO in 2006, Mulally, 65, has been steering the automaker's turnaround. Ford Motor Co. has reduced its debt by $10.8 billion this year and has reported six consecutive quarters of profits despite a U.S. economy that's still recovering.
Staff Reporter Jamie LaReau, News Editor Charles Child and Publisher Peter Brown spoke with Mulally at his office in Dearborn, Mich., about what's next for Ford as it closes Mercury and looks to rebuild Lincoln.
If U.S. production growth continues, will we see an increase in Ford's North American production?
Yes. Clearly, based on the strength of the market coming back and our increasing market share, you just multiply one times the other and we'll be increasing the production. But we haven't given guidance out on how much for next year.
How will you compete in Europe if competitors keep producing too much and charging too little?
They have overcapacity, and they didn't move as aggressively as the United States. Over time, economics will dominate. We've seen some of our competitors with unsustainable practices on discounting. You just can't do that because you can't stay in business. So as we go forward, I am confident the economics will take over -- the fact that you have to run as a business as you said, which is exactly what's happening in the United States.
You have a good Fiesta, soon to have a new Focus, and gasoline is still $2.85 a gallon. Are you flexible enough to make what people want to buy, independent of gasoline prices?
Oh, absolutely. Remember, our plan is a full family of vehicles. In the United States, because we were not competitive on the cost side, we chose not to invest very much in smaller vehicles, and we focused on bigger SUVs and pickups. It wasn't because there wasn't a market. It just happened that the Japanese were in that market. Well, with our transformation, our new agreement with the UAW and our new cost structure, we can make money on cars in the United States.
Let's talk about plans to rebuild Lincoln. A lot of dealers say they want to see this new lineup before committing millions of dollars to store renovations. What are they telling you?
They are excited at the fact that Ford has chosen now to revitalize Lincoln as a luxury brand. This is again a continuation of the Ford plan because the Lincoln plan includes three pieces: You've got to have dynamite luxury vehicles, and we know how to do that; you need a distribution system where you have the Lincoln stores in the right places, where the luxury customers are in the United States; and the Lincoln stores that choose to go with us on this need to take the consumer experience to a whole new level to support the luxury customers.
We're going to do it collaboratively with them, and we're going to create a great brand again out of Lincoln
Full interview at the link