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Old 11-04-2005, 04:03   #1 (permalink)
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ford $284 million loss?

Jubak's Journal
Just call Chrysler the Big One
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To become global players again, the U.S. Big Three automakers must become ruthless cost-cutters -- or find a new competitive edge. Only Chrysler looks like it has a chance.

By Jim Jubak

Let's be clear about one thing: What used to be called the Big Three -- General Motors, Ford, and DaimlerChrysler -- will survive. They'll slash wages enough, cut retiree benefits enough and sell assets enough to escape the current crises..........

.............Ford, which announced a $284 million loss for its third quarter on Oct. 20, hasn't announced all the details of its restructuring plan, but the outline sounds remarkably like that offered by GM. Ford will sell assets (the Hertz rental car unit). It will seek health-care concessions like those General Motors worked out with the United Auto Workers. And it will reduce production and the size of its work force. Ford already is on schedule to cut 10,000 jobs by the end of 2005.

http://moneycentral.msn.com/content/...4.asp?GT1=7390
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Old 11-04-2005, 04:48   #2 (permalink)
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Re: ford $284 million loss?

Yeah, this is old news. Today Ford annouced layoff's in Europe.
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My next Ford.....
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Old 11-04-2005, 18:53   #3 (permalink)
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Re: ford $284 million loss?

This guy has a lot of opinion, which he is entitled to, but shouldn't pass them off as facts...

"And DaimlerChrysler, again maybe because it is an international company in the way that Detroit born-and-bred General Motors and Ford aren't,...."

I would like to know what he means by that? There is Ford of North America, Ford of Europe, Ford of South America, Ford of Australia....and many many others including the South Pacific and Eastern countries. Ford of Europe has just about moved all of their designing to Germany.....where Daimler is.


"Maybe because the German end of the company (DaimlerChrysler) has experience and success with niche markets that sell on design -- why else buy a Mercedes?"

In the 2005 Consumer Reports (non-profit magazine, most often consulted for info on vehicles before purchasing) "Best & worst in car reliability" review NO GERMAN cars made the "Most Reliable" list. Seems that Germany is having their own quality problems......

From the article...."Most of the worst sedans in our rankings came from Europe, including several expensive luxury models such as the Audi A8, BMW 7 Series, Jaguar S-Type, and the Mercedes-Benz E- and S-Class."

Here is the Consumer Reports review -----> Consumer Reports

Personally I like the 300, Magnum, and Charger a LOT!! I think they look great, but the quality problem with these cars is going to catch up to Chrysler real soon.


Delphi UAW workers have a contract similar (almost exacting) to the one I work under at Ford. That is due to "Pattern Bargaining" and I can tell you that the figure for benefits its greatly inflated. According to my "2004 Summary of Compensation and Benefits Report" that I got from Ford which reviews my total compensation for the year my benefits equal another $10 an hour, not the rediculous $38 an hour that is being reported in from many news agencies!! Included in the list of "Benefits", according to Ford, is taxes such as Social Security and Worker's Compensation (a State insurance for financial aid to workers injured on the job) that the company MUST pay by law anyways and is NOT a negotiated thing. All employers must pay this.


As for financial cuts that need to be made (speaking of Ford only since that is where I work) I believe they have to leave the retirees alone. These people bust their but for the company for 30 years or more and retired with a contract in hand that stipulated the retirement benefits that the company agreed to! To change their benefits is to say that a negotiated and agreed contract means nothing!

Personally I would have no problem with $2 per hour of my wage going to pay for my health insurance. That is $80 a week, $320 a month. Also I usually work more than $40 hours a week and that adds up to even more money. I would even go $3 an hour towards my healthcare benefits. That's $480 a month (on a 40 hour week), $5,760 a year! According to Ford this would more than halve my medical coverage which is their biggest complaint. I think reducing Ford's UAW member's health insurance costs to the company by 50% would be a good move.

There are other ways to reduce costs without penalizing the retired workers who already have contracual guaranteed benefits. To change them would be illegal!!

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Old 11-04-2005, 19:07   #4 (permalink)
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Re: ford $284 million loss?

Ford has made some monumental changes at the top.

"Mazda Motor Corp. posted better-than-expected third-quarter profits on Friday and kept its projections for record full-year earnings...."

The guy that put Mazda into this position is now at the helm of Ford in North America. He is a very different and younger guy than we are used to seeing in that position. Along with Mark Fields and some others I am finally optimistic about Ford! Mark Fields even knows what an XB Falcon is. He stated so in his response to my email. He even responds to a lower employee like me. How cool is that? If anyone wants to know more about what he had to say about the XB just let me know.

With the success of the Mustang and reins being taken off of designers we should see some pretty good looking cars coming in the coming years. The American Fusion car (in Europe it is an SUV) is selling as fast as it hits showrooms. Of course I view this as the people that have been waiting for it to come out. We will see how it is doing in 4-6 months. Also reviews by magazines have been glowing! It is even recommended in some as preferred over a Camry or Accord.

The advertisements (TV) for the car are pretty cool, and there are a LOT of them. Finally a commercial about a Ford that has an impact.

It will take time due to the scale but you will not recognize Ford in 5-10 years.



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Old 11-04-2005, 20:13   #5 (permalink)
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Re: ford $284 million loss?

"It will take time due to the scale but you will not recognize Ford in 5-10 years."-
when would be a good time to start stocking parts?
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Old 11-04-2005, 21:24   #6 (permalink)
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Re: ford $284 million loss?

I meant that comment in a positive note.


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Old 11-05-2005, 03:05   #7 (permalink)
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Re: ford $284 million loss?

I know Ford lose a lot of money via Ford Credit. the amount of money they are owed and people defaulting on their loan repayments, which means they are at a loss is crazy!

I do work for them, and 20 Million in debts, unrecovered just in australia! Thats just part of it.
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Old 11-05-2005, 07:15   #8 (permalink)
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Re: ford $284 million loss?

Actually, to the contrary, Ford Motor Credit is probably one of the most profitable entities in Ford. If not for the huge past profit from FMCC Ford's financial position would be far worse than it is. FMCC has helped to keep Ford afloat when it's automotive sector has lost money. Here's what happened the last quarter...

"Ford Motor Credit Co., the company's finance arm, reported a profit of $577 million, down $157 million from a year ago. The decrease was due to higher borrowing costs, the company said."

http://www.philly.com/mld/inquirer/b...uirer_business

For 2004 FMCC earned $2.9 Billion in profit. Profit was down some this year due to higher borrowing costs because of Ford's credit rating. Over the past years FMCC has been doing well while Ford's automotive sector has been waning.

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Old 11-05-2005, 13:22   #9 (permalink)
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Re: ford $284 million loss?

the recession is comming, at last.... look out for job cuts in all retail areas, just hope the interist rate stays the same or the bank will be taking lots of homes back again.
when will our gov members take a pay cut and stop spending 40 million dollars to show a few adds on how they are going to fix our hospitals..
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