In a video interview with USA Today. Ford CEO Alan Mulally admits that American consumers' switch to smaller, more fuel-efficient vehicles is permanent. Despite talking-up the new F150's chances of success, Big Al reckons the move from light trucks is "not a temporary shunning of big SUVs while they wait for record fuel prices to drop." Which Mulally says ain't gonna happen, anyway. "It's not like we have a shortage of oil, but recovering what's left under the earth has become very expensive, ensuring continuing high prices." When asked for a new date for The Blue Oval's scheduled return to profitability– previously set at 2009– the former Boeing exec would only say it's delayed by a weak economy and the shift from "high value trucks" to smaller cars. The video clips are interesting to watch, and much less painful than anything from Lutz or Wagoneer. But the spin doesn't stop here. Asked about Volvo, Mulally claimed the ailing Swedish brand isn't for sale. Last April, Mulally told the world Jaguar wasn't for sale. That deal went down yesterday.
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Honestly, I have a lot of respect for Mulally. In terms of Auto-company bigwigs, he’s far and away the most honest and reasonable, and he isn’t just always spouting bullshit. He’s got good perspective on the industry and isn’t just covering his eyes and plowing ahead. He’s the reason I give Ford the best chance of returning to profitability, but then again what do I know.
He’s going to need those safety goggles for the shareholders meeting later.
After 30 years in salaried positions at Automotive Tier 1 and suppliers I have learned that the big shots are still playing games we learned as children. You can say anything and it isn’t a lie if you have your fingers crossed. I would like to bet that 90% of what those guys tell us is a lie. And you have to remember their customers and employees aren’t really their audience are we.
We tried telling them that three years ago …
Ford will be OK, though. Mulally began the work of getting rid of silly cars and stupid ways of making them the moment he came through the door.
How long did it take him to wake up and smell the coffee!
I hope to hear an announcement that Wayne, Michigan is going to be converted to full time production of automobiles (since right now, 1/2 of Wayne builds Foci, the other 1/2 builds – er was building? – pickups).
That will give me some confidence that Ford is on the return to viability, but I still have to say, that Ford may be the last man standing.
Considering that Ford was nearly a write-off after WWII, and came back like a Phoenix, then was nearly written off in the early 1980’s and came back like a charging bull (Taurus, geddit?), and is being nearly written off now (for good reason) – hopefully Ford survives.
While I won’t buy a Detroit 3 product, I’d be willing to consider a Mazda and especially a Mazda 6, since it’s built in Flat Rock Michigan.
Lord knows, our state needs all the help it can get.
It was actually one factor in deciding what new pop-up trailer to buy last year; we chose a Clipper, manufactured in Michigan.
What CAFE giveth, CAFE taketh away.
In this case, I’m glad. The light truck boond… err, exemption created the SUV bubble, stalled real progress on fuel economy and is partially responsible (bad management at the Detroit 3 being the other 60%) for the domestic auto industry’s current state.
I don’t know if the current CAFE wheelbase/length standards aren’t going to get gamed in some fashion, but it can’t be much worse.
Mulally seems to be proving himself as an adept manager, irrespective of airplanes or automobiles.
Regarding CEO’s propensity to ‘lie’ I don’t want to overlook this bad habit however, to quote Jack Nickolson “You can’t handle the truth…”
If of all people, the CEO comes right out and says “We’re screwed…” how well do you think that the next round of labor negotiations are going to go? Management and the rest of the white collar staff will be heading for the exits too. All that ‘truthiness’ won’t help the stock price either.
Oh, the new CAFE will be gamed, no doubt about it. Hopefully we don’t end up with goofy-looking cars as a result.
It’ll be interesting to see how quickly and how well GM and Ford react to the market shift.
Chrysler…heh.
Hey Mr. M – how about building this at Wayne, instead of pickemup trucks?
http://www.globalautoindex.com/model.plt?no=6234&ass=
Just bite the bullet and add it to the Ford line as the Mondeo.
Not forgetting the station wagon.
http://www.globalautoindex.com/model.plt?no=6235&ass=
Utilize the engines as in the Focus with the engine as used in the Mazda 6 (2.3 litre) optional.
Then sell it ALONGSIDE the Fusion as a slightly more “eco” (as in “economical” and “ecological”) line.
Maybe even simply call it the Ford Mondeo Green Line.
NO badge engineered Mercury or Lincoln versions, please!
US auto executives have no shame, no clue, and no vision. Gas is at $4.50 a gallon and climbing. Chrysler is grinning about it’s 4000 lb automatic V8 14 mpg “sports car”. Ford touts a bloated 4000 lb rigid axled gas guzzling antique and GM the upcoming scale squashing inefficient Camaro and the battery less Dolt. But all is not lost at GM they are “thinking” about selling the Hummer. I bet Honda Toyota VW Nissan are lining up for that opportunity.
Does anyone in their executive suites understand strategic planning and ongoing SWOT analysis. (Strength Weakness Opportunity & Threat) Watching these companies is very entertaining and would be rolling on the floor laughing funny. But these clowns and their friends at the UAW have all but killed the state of Michigan with their ongoing blind incompetence and brutal stupidity.
Caveman,
Clearly you are a man who should be running all 3 of the big 3 Detroit companies with your amazing abilities. After all, rising gas prices can have been no surprise to you with your perspicacity (indeed you must be a wealthy man as you invested all your money in Shell and BP last year as you knew EXACTLY what was going to happen to gas prices this year and kept the information to yourself). You know all there is to know about product development cycles, time to market equations, vehicle adaptation rules, inventory management, production plant utilisation rates, union negotiations and of course, all elements of sales and marketing.
As such, I recommend that you place yourself at the disposal of Ford, GM and Chrysler – you are just the man this industry needs to take us forwards. Thank you for your insight.
Surely the automakers have good crystal balls to tell them what the economics of America (and the world) will be 10-15 years down the road?
When high fuel prices come into focus why didn’t they quietly begin to tool up for some 25+ mpg vehicles and doll up their existing gas sippers?
Heck they could have said – hey, look we think you might be interested in some of our more frugal offerings b/c prices will likely go up – no guarantee but it looks that way. Then they might be perceieved as the customer’s friend rather than a corporate con-man trying to get as many customer dollars as possible.
That’s something I see in the vintage magazine ads I have – advertising that emphasizes wise choices and careful shopping.