Thread regarding Ford layoffs

Blaming the revenue generators for Ford’s dysfunction….

The fastest way to cut $7-8B in costs would be

  1. eliminate Ford Next
  2. eliminate half of the LL ranks and two thirds of the “executives.”
  3. cut Farley an$ Bill’s salaries by 90%.

There. Done.

Ford targets $7B-$8B cost disadvantage, dysfunction
BY JORDYN GRZELEWSKI
The Detroit News

Ford Motor Co. executives on Wednesday provided greater insight into costs that are weighing on the Dearborn automaker's financial results, with CEO Jim Farley saying “fundamental change” is needed, especially around how vehicles are engineered, sourced and built.

Those costs add up to a $7 billion to $8 billion disadvantage for Ford compared with its traditional rivals, Chief Financial Officer John Lawler said; those expenses will be the target of reductions in the coming years amid the costly shift to electric vehicles.

During the company's fourth quarter and full-year 2022 earnings report earlier this month, Farley referenced “dysfunctionality” within the company's legacy business that was dragging down results.

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Post ID: @OP+1ldbV24G

11 replies (most recent on top)

Farleys experience at Toyota was limited to marketing and running a small Scion division. His Lexus tenure was short lived too. He had no field experience there and never was dealer facing. And no Engineering experience at Toyota either. How he even got hired at Ford is beyond me.

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Post ID: @3gvf+1ldbV24G

F-series US sales
2015 780,354
2016 820,799
2017 896,764
2018 909,330
2019 896,526
2020 787,422
2021 726,004
2022 653,957

We have a serious problem.

Even before the '21 F-150 launched, it has been drilled into us by our more recent leadership that we need to pull cost and content out of our cash cow so we have more money for our electric investments. Rough math, I'd estimate that the F-series is delivering 11-14 billion in profit per year, even at 650k US volume. We have stopped investing those returns back into the product line that is responsible for delivering 200%+ of our EBIT. What's worse is we are stripping out the little items that made it the top selling truck all while we are asking an even higher prices from our customer.

I expect the sales slide to continue as our customers realize they are no longer getting a competitive value out of these products. We better fix this quick, or there won't be any future for Ford Motor Company, electric or not.

GM just invested $1 billion into their next generation small block V8. We've done nothing but TVM our powertrain lineup to the point that we have a warranty quagmire, and the cost savings will probably not even outweigh the costs to change the tooling.

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Post ID: @2izz+1ldbV24G

@dwi+1ldbV24G Model E is doing a bang up job then according to you its a good plan. Is that why we stopped production of Ford lightening.

Yes splitting up the company and creating more managers is not working out.

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Post ID: @1huy+1ldbV24G

OMG @dwi
When Mulally initially came in the Ford-ites were all working against him sabotaging and calling him the flavor of the month. Mulally’s leadership style and personality of service got nearly everyone working together for a common goal which forced the Ford-ites underground. As soon as Mulally left the Ford-ites resumed their destructive behaviors and the Ford culture quickly returned to norm (silos of teams only concerned about their own careers, bad mouthing other teams and taking credit for others accomplishments)

Doug ain’t no Alan, he is another Farley type.

Sadly, it is plain for everyone to see that FoMoCo is in crisis mode. While I want FoMoCo to do well. It is hard to support the clowns in leadership roles. True leaders do not spend all their time building and polishing their public images. They are too busy working on FoMoCo business. The current CEO is all about “superstar” image and bringing in outside “leaders” to parrot his beliefs and delusions and bolster his fragile ego. The results (or lack there of) are proof of the systemic leadership failure. And what do these “leaders” do? Take accountability? Naw, they blame the workers.

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Post ID: @1acy+1ldbV24G

You can easily spot the HR and/or exec lurkers on this board. Pathetic.

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Post ID: @1vub+1ldbV24G

Last poster is an embarrassment to any group he is part of.

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Post ID: @1myu+1ldbV24G

Post ID: @crv+1ldbV24G

You must not be part of Model e with a comment like this. "One Ford" was a flawed idea which prevented us from focusing on products for the electrified future we are now transforming to. Ford+ Plan with Doug Field's Model e does this. Including Ford Blue would be outside noise to Model e's focus on BEV and software/services, which will drive our future revenue.

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Post ID: @dwi+1ldbV24G

When Mulally left, we were the star quarterback and every prom queen wanted to date us. Now we're the fat smelly gamer kid with cheeto crumbs all over his face. What happened? How did a company that was nailing it, lose its mojo so fast? Was it covid? Was it Ukraine? Housing bubble? Venus and Mars misaligned? Biorhythms out of whack?

I'm stumped.

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Post ID: @pow+1ldbV24G

Go back to Alan Mullaly didn't he say we are One FORD. Right now its Ford Blue vs Ford Model E..... And now we can't do anything right all split up instead mediocre at best. Good times ahead i tell ya

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Post ID: @crv+1ldbV24G

All of the dysfunction stems from the top floor of WHQ.

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Post ID: @gxp+1ldbV24G

@OP. I disagree with number 3. It should say:

  1. Fire Farley and Bill.

After all, their ideas are the money losing decisions taken by the company. I am not sure we can even afford another Train Station right now. Fire their a$$es!

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Post ID: @urg+1ldbV24G

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