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Automotive News & Views What about the future of Ford Inc?? 
1858 messages, Last post on Oct 16, 2006 at 6:25 AM
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| The major auto companies just can't afford to make the majority of parts themselves. It's just not manageable - they can't do it and still be competitive. I'm afraid that parts quality is becoming the victim of the increased competition in the auto industry. | |
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From what I have read, it sounds like the fundamental difference 9s the the domestics (GM in particular I think) look at it as an adversarial relationship, and like to throw their weight around demanding they cut the price, and you know where that shows up! Toyota, OTOH, still wants a low price, but the tend to partner with the suppliers to make sure that everything goes well, and might even allow a change that might make a part more expensive if the supplier could show that it has quality implications.
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Replying to: stickguy (Oct 25, 2005 11:50 am) Toyota, Honda, and others demand cost cuts just like the domestics. But, unlike the domestics, they will help the supplier figure out how to do it. They share technology, and sometimes even development costs, in order to aid the supplier in manufacturing the parts within their target price range. |
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Replying to: nippononly (Oct 24, 2005 11:05 am) As to the Diesel - Navistar is the producer of the engines, former and current. At one time, I had heard that Ford owned a piece of Navistar, which is an International Harvester division, I believe. Not sure that's true anymore, but Dodge buys their Diesels from Cummins. GM is the only manufacturer to go it alone, I believe, with previously disasterous results. I've not heard of any trouble with the Duramax, but this is the first time, since the Oldsmobile diesel that GM has got it right. |
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Replying to: marsha7 (Oct 24, 2005 8:01 pm) Plus, I still believe that if one domestic company files for bankruptcy, it will take some pressure off the remaining domestic players, as it will be very difficult for an automobile manufacturer to recover from a declaration of bankruptcy. This isn't the airline business. People who buy a new vehicle want the manufacturer around to service it and honor the warranty. Sales will plummet and many dealers will abandon their franchises. Many of those sales will go to the remaining domestic manufacturers. At this point, GM still seems to be in worse shape than Ford. And the more I read about GM's agreement with the UAW to cut healthcare expenses, the less impressed I am with it. It is shaping up to be much ado about nothing, in my book. |
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Thanks to the recent $300 million loss, Ford's cash surplus only exceeds its debt by just over a $1,000,000,000. It is amazing to me that the press can rave about all these dot coms that have no profit, no cash surplus, no history of producing a profit, no likely hood of producing a profit in the short term future. Ford though gets bashed and bashed and bashed. Personally, I think Ford should go private. It is clear that Ford has excess capacity and that excess capacity drives down profitable but bankruptcy? IMHO until car companies fully embrace the current market conditions and reality none of them are safe. Today people what a car that closely reflects their image of themselves, their lifestyle, etc. What this means is that even two models in the same price and size category are not necessarily direct competitors. The Mazda 6 and the Mercury are cousins, but are they competitors? for the same customers? The fragmentation of the auto industry is only going to increase. Either manufacturer are going to focus on a niche like Mazda has or they are going to have to have a produce enough differenciation between trim levels to appeal to completely different types of people. Ford is doing this to some extent with the F-150 and it seems pretty successful. There is an F-150 for everyone from the $21,000 work truck to the $45,000+ luxury truck. The Focus is an example of how Ford is missing the boat. The interior of this car is so bland and econoboxish that it has no chance competing against the Mazda3, Jetta or other premium compacts. I'm one of those weird Americans that would prefer a smaller car with more features and equipment than just buying a bigger car. I think more people in my age bracket are like me (25-40). With gas prices going up, smaller just may mean better. Mark |
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Replying to: nvbanker (Oct 25, 2005 3:43 pm) |
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Replying to: chuck1959 (Oct 26, 2005 11:25 am) |
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Replying to: chuck1959 (Oct 26, 2005 11:25 am) 
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Replying to: nvbanker (Oct 26, 2005 9:51 pm) |
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