Ford Benefits from GM/Chrysler Bankruptcies

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The Detroit Big Three soon will consist of the New General Motors, New Chrysler and Old Ford, or better… the New Old Ford. Ford has benefited from a major restructuring begun with the arrival of Alan Mulally in 2006. Like most other automakers today, their sales are way down and they are hemorrhaging cash at an alarming rate. But they seem to have a plan. They have a viable short term product plan, have aggressively rightsized their organization and have not taken federal bailout money and have not undergone bankruptcy, It’s a wonder that all sounds like good news.
A VehicleVoice Internet survey of over 900 respondents in the field from June 3 through June 8 asked several questions concerning Ford’s position in the market while General Motors and Chrysler are in bankruptcy…


Ford’s Performance – Luck or Skill? About 49% of the VehicleVoice panel members taking the survey agreed that Ford management had great vision to anticipate the downturn. Of course, 39% agreed that Ford was “lucky” enough to clean house before the downturn. Thirty-nine percent of the sample agrees that Ford has yet to prove that they will not be asking for a bailout. Clearly folks perceive that Ford did have the foresight of good planning and also good luck, but that they are not out of hot water just yet.
Ford – Biggest of the Detroit Big Three: About 55% of respondents believe that Ford Motor Company will be the biggest of the Detroit Big Three when the dust settles. Under this belief, Ford will have overtaken General Motors as the domestic sales leader in the United States. Whether Toyota or Ford would be the absolute sales leader remains to be seen.
Ford Viewed More Favorably: About 61% of the respondents AGREE that they think more favorably of Ford today than before the General Motors and Chrysler bankruptcies.
Can’t Yet Justify Those Corporate Jets: Only 21% of the respondents agree that Ford management deserves to fly in corporate jets rather than on commercial air liners. Maybe corporate jets will never be egalitarian enough for the typical car buyer.

This article has 1 comment

  1. Robert Tristani 06/17/2009, 3:52 pm:

    Ford has made their “loser cars” over the last 20 years. But then again, remember their competitors and ask ‘what automaker hasn’t?’ Ford is on a great turn-around now, with lots of successes. Managers, engineers, designers, laborors, the whole company seems to have bought into a ‘work hard, do it right, or die’ attitude, and it is working. It’s time for Americans to be proud of an American company, American ingenuity, and American employees at all levels. Ford is proving themselves now. No company is perect, but Ford is doing well, and they deserve the respect of all Americans. Let’s cheer them on.

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