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I apologize if this is incorrect as the only bits I know are from my interest in cars and not finance, but I don't think it was completely luck that Ford decide

by rifung 11y ago

I apologize if this is incorrect as the only bits I know are from my interest in cars and not finance, but I don't think it was completely luck that Ford decided to try to get money. From what I understand, they did all this because Alan Mullaly just took over as CEO and he wanted to cushion a potential unexpected event. At least that's what it says here: http://www.nytimes.com/2009/04/09/business/09ford.html?scp=5&sq=vlasic%20mullally%20debt%20ford&st=cse&_r=0 http://www.nytimes.com/2009/04/09/business/09ford.html?scp=5... As far as I can tell, Alan Mullaly is a very good CEO who many consider to be responsible for the comeback of both Ford and Boeing. I remember there were rumors he was even considered for the position of CEO of Microsoft. That being said, I don't think you could say it was completely luck.

ssmoot 11y ago
It's always a mix. And is it luck or preparedness and foresight? Either way, there's a strong argument to be made that Ford was in very bad shape, and their timing in 2006 was amazing. Had they held out much longer there might very well not be a Ford today. This is an interesting article I just ran across, and suggests the fundraising actually predated Mullally: http://fortune.com/2011/05/25/fords-forgotten-man/ http://fortune.com/2011/05/25/fords-forgotten-man/ I dunno. Ford is looking a bit 90's Apple right now IMO. Product (outside of the F-series) seems a week point.
csours 11y ago
I just finished reading American Icon by Bryce Hoffman. Ford realized they needed to change long before this; around 2001 (around the same time that Bob Lutz was preaching to GM). Bill Ford and Mark Fields were already planning to do many of the things that Mulally wound up doing. What Alan Mulally did was still incredibly amazing - he restructured the reporting structure at the top of the company, increased accountability, increased transparency, increased trust and made people deliver on the plans. He got people to surface their problems at the executive level, where before everyone hid the issues for fear it would be used as ammunition against them by fellow executives. Mulally emphasised the core brands, and in fact wanted to ditch ALL the brands except for Ford. He got Ford to bring over the European models that were far superior to their equivalents in the USA. He brought the Mazda product development model to Ford, where the engineers and designers sit in the same room. He sped up implementation of Global Ford Production System, patterned in large part on the Toyota Production System. He worked with the UAW to decrease legacy costs by funding the VEBA (UAW run healthcare fund) and trading worker concessions for promises to keep production in the USA. He worked with suppliers to decrease costs and increase supplier satisfaction. He reduced the number of dealers. When I say "he" did these things above, I mean he pushed for them. In almost all instances they were accomplished by other executives and team members. The discipline and planning were not luck; the timing was very lucky indeed.

by rifung 11y ago

ssmoot 11y ago

It's always a mix. And is it luck or preparedness and foresight? Either way, there's a strong argument to be made that Ford was in very bad shape, and their timing in 2006 was amazing. Had they held out much longer there might very well not be a Ford today. This is an interesting article I just ran across, and suggests the fundraising actually predated Mullally: http://fortune.com/2011/05/25/fords-forgotten-man/ http://fortune.com/2011/05/25/fords-forgotten-man/ I dunno. Ford is looking a bit 90's Apple right now IMO. Product (outside of the F-series) seems a week point.

csours 11y ago

I just finished reading American Icon by Bryce Hoffman. Ford realized they needed to change long before this; around 2001 (around the same time that Bob Lutz was preaching to GM). Bill Ford and Mark Fields were already planning to do many of the things that Mulally wound up doing. What Alan Mulally did was still incredibly amazing - he restructured the reporting structure at the top of the company, increased accountability, increased transparency, increased trust and made people deliver on the plans. He got people to surface their problems at the executive level, where before everyone hid the issues for fear it would be used as ammunition against them by fellow executives. Mulally emphasised the core brands, and in fact wanted to ditch ALL the brands except for Ford. He got Ford to bring over the European models that were far superior to their equivalents in the USA. He brought the Mazda product development model to Ford, where the engineers and designers sit in the same room. He sped up implementation of Global Ford Production System, patterned in large part on the Toyota Production System. He worked with the UAW to decrease legacy costs by funding the VEBA (UAW run healthcare fund) and trading worker concessions for promises to keep production in the USA. He worked with suppliers to decrease costs and increase supplier satisfaction. He reduced the number of dealers. When I say "he" did these things above, I mean he pushed for them. In almost all instances they were accomplished by other executives and team members. The discipline and planning were not luck; the timing was very lucky indeed.