I really don't care about Ford, but I read a great article in BusinessWeek a few days ago describing all the things their new CEO is doing. Mulally is definitely asking the right questions. One point I remember was not long ago where he went to Consumer Reports with some engineers and had CR go over every single vehicle Ford makes. When CR pointed out the practical flaws (like ease of use, standard features, ergonomics, etc), the engineers tried to argue with CR and justify their mistakes. Mulally just went around, handed each engineer a pen and notebook, and told them to shut up and start taking notes!
The article also described his horror when he learned that Ford's new MP3 hookup system is incompatible in any of the Euro-built cars' (Volvo, Land Rover) electrical systems. "Mulally finds this incomprehensible, considering that Ford has owned the European brands for nearly a decade." (page 36).
He was also examining Ford's product line brochures when an exec pointed out that Ford loses $3000 each time a customer buys a new Focus. He asked him why Ford hasn't been able to find a way to make a profit on it. The exec gave some #@$%! about CAFE volumes, high UAW costs in Michigan, etc. Mualally responded, "That's not what I asked. I want to know why no one figured out a way to build this car at a profit, whether it has to be built in Michigan or China or India, if that's what it takes." (page 35).
So, I think it is clear that Ford's new leadership is working hard to make things better, but this will all of course take time.
As I said, I don't like Ford's products and will probably never buy a Ford, but I think they will come back under the right leadership.
Andy
The article also described his horror when he learned that Ford's new MP3 hookup system is incompatible in any of the Euro-built cars' (Volvo, Land Rover) electrical systems. "Mulally finds this incomprehensible, considering that Ford has owned the European brands for nearly a decade." (page 36).
He was also examining Ford's product line brochures when an exec pointed out that Ford loses $3000 each time a customer buys a new Focus. He asked him why Ford hasn't been able to find a way to make a profit on it. The exec gave some #@$%! about CAFE volumes, high UAW costs in Michigan, etc. Mualally responded, "That's not what I asked. I want to know why no one figured out a way to build this car at a profit, whether it has to be built in Michigan or China or India, if that's what it takes." (page 35).
So, I think it is clear that Ford's new leadership is working hard to make things better, but this will all of course take time.
As I said, I don't like Ford's products and will probably never buy a Ford, but I think they will come back under the right leadership.
Andy