My thanks to you all for the kind comments about the article, especially from Wallace who has especially relevant knowledge, experience and insight about the situation described in this particular Autoptic.
I think I understand what it is Charles is trying to say. The Ford family holds a substantial proportion of the equity in Ford. That in itself should show Mr. William Clay Ford III, currently running the company and his family won't go down without a fight and one wishes him well. However, Ford's credit rating is at or below junk and its stock price, though rallying slightly since the restructuring announcement remains low. And Mr. Ford did intimate in his address on Jan 23 when he unveiled his plan that this is a last attempt at pulling the company around. The company, like GM, is drinking at the Last Chance Saloon.
Do not be surprised if the company goes into Chapter 11 bankruptcy protection. It also has the forthcoming burden of the failing Visteon business to deal with (Visteon was spun off from Ford a few years ago but it seems whatever were the terms, there was a protection clause whereby Visteon could dump its problems back onto Ford: and it is doing so as some 25 problem plants will be returned to the Ford fold soon.)
So, Charles, I am not so sure you are right. Yes, it is sometimes the case that large companies can come back - and everyone must be pleased for all stakeholders benefit when that happens. Of course, you might be tempted to buy some Ford stock in the belief that a resurrection similar to that of Proctor and Gamble may occur. In Ford's case, I think it will be more a gamble.
And Simon, the "I'm Backing Britain" campaign that preceded the "buy British" one, started with a few office girls, back in the late '60s. They were willing to work an extra half hour per day to help their employer reduce costs and get better productivity. It rapidly spread but was stamped out by - the unions. After that, we went inexorably downhill as the unions became more unrealistic, culiminating in the infamous "Winter of Discontent", at which point the entire nation said "Enough" and voted in Margaret Thatcher's government. The rest is history but the current British prosperity owes much to her tackling fundamental issues. Some of them are described in my address to the ASQ Detroit section, which Simon has kindly posted in the "Business Articles" section of this site.
Mr Ford needs to be a Mrs. T in dealing with his product line, his management team, the unions, the dealerships et al. I suspect the suppliers have been beaten up enough.
Edited by allanj, 27 January 2006 - 02:52 PM.