With Cannis gone from Pro and Stern gone from Integrated Services, what is the reorganization going to look like? Both groups are smoke and mirrors, taking revenue from the vehicle sales. Nobody is paying for subscriptions for Blue Cruise, security services or connectivity services. I think the right thing to do is eliminate both and focus on selling quality vehicles that people can afford to buy.
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Ford might just be the last one standing. My guess is they will attempt to outsource what they can (software, ect) if they cannot do it themselves. When / if that doesn't work they won't stand for Chinese control and they will merge with Tesla. It would be a travesty to see any of the big 3 come under Chinese ownership. However, its a very real possibility if they don't start come up with something. You can only move labor to LCC so much and this is such a cop out and low IQ move. When you do this you just delay the inevitable and this trick is not a long term plan. But then again that's why Ford and other OEMs are in this pickle isn't it? Too long without a 100 year plan and too many 3-5 year plans steering the company. Tesla will be allowed to operate in China as long as they innovate. Once they stop (which they won't) they will be pushed out. This is already happening to other American OEMs who have saw the business there suffer. They stopped innovating and therefore no longer have anything the Chinese industry wants.
Ford Pro does make money... It was one of the actual shining stars of Ford for a while. I doubt it will go away. But I have no idea when/if/how it will be re-org'd...
You guys are not seeing it the right way. This company is being bought or merging. These types of studies/negotiations have been going on for a while; as far back as when the Amazon CFO became the Ford CFO (Tim Stone). Ironic at the time when Bezos was publicly the richest person, but he went the other path with the Rivian debacle. He had his guy on the inside with full access to all the books; the ability to run models for what it would look like, etc. It didn’t look good, Bezos backed away, and Tim Stone left once that was decided.
The latest one is with the Chinese. The chicoms are flush with cash and know the only way to gain access to the US market is to merge or hostile takeover one of the NA OEMs. GM would never fly after their bailout, Stellantis is already committed, so all that leaves is Ford. Since still privately controlled there isn’t much the government could do to block it (unless there was an outright ban on US companies being Chinese owned). Make no mistake: Ford is a high value target for chicoms to expand their influence into the US market. What happens after Jan 20 will dictate how this all plays out.
If the US government allowed Chinese vehicles to be sold in the US the the big 3 will be thinking about survival and bankruptcy protection asap.
They should move these organizations and anything relating to new technologies under DF.
“ I think the right thing to do is eliminate both and focus on selling quality vehicles that people can afford to buy.“
While this makes perfect sense, I don’t think the id--ts that run the company will go for it.