I've been wondering if this is a possibility, and then read someone else's comment making the same suggestion this morning. Anyone think this is even remotely possible?
"Most believe the problems at GM, Ford Motor Co. (F, Trade) and DaimerChrysler (DCX, Trade) will bring painful changes that will force the companies to remake themselves or die. The bottom line is that they probably will survive, but certainly smaller and probably as U.S. units of their Japanese rivals."
F has tried to get this out of the way. Jr. has said that F & GM are 2 different co.s as STRONGKLY can be said. The sooner that F and GM can be disconnected as far as perception the better for F. GM is hurting F. They have come after F in every way. Their discounts after 9/11 were intended to end F. They are not the same thing. Some posters would like you to believe this for various reasons. Some are in the UAW which has no favorite, some are from foreign Mfg. some hate F for whatever reason. F & GM are 2 different and distinct co.s.
Part of my thinking is that GM will face reality. GM is reeling right now, more than the gen. pubic realises. F can make huge mkt. share gain by stating with Jr. out front, that F will stand behind each and every F by offering a 5 yr. 50,000 warranty on all cars and trucks..............Not just stronge buy but HUGE BUY.
You left out one the the most important thing that F has to do to be competitive.
It has to lower total labor costs.
It's been estimated that total labor costs for F is somewhere between 56 and 60 dollars a share, including retirement and health care costs, plus other fringe benefits.
Also labor under labor rules, means higher production costs.
These work rules must be changed for F to compete.
These total costs are much, much higher than other manufacturers in non-union plants- mostly in the South, with their younger labor force.
If it is not competitive in labor costs,and work rules, it will never be competitive in SELLING COSTS.
These other car manufacturers can manufacture cars cheaper, and with less defects, and can sell at higher prices because of perceived better quality.
If these costs are not lowered, F will never be competitive.
I bought the stock on the hopes that these costs will be lowered, and F will turn it's operations around.
Another thing. We had a go around about GM's losses where you said they were something minimal or around 4.5b I said they would be 5b and going to get worse and end up at 10b. You chastised me for this. I think an apologyis order. This on the GM board.
With GM mess F can capitalise in a big way. F needs to give the American public some idea that their autos are reliable. They are in a position any co. would kill for. Their dire enemy is on the ropes. They need to look beyond GM and in their Ad's they are. Give the pubic a reason to believe quality is job 1. Also bring out some new stuff. F will be the turnaround of this new Century. This is an opportunity of a lifetime in my opinion, If F will do this right. This of course is a ? even from one of F's strongest supporters.