https://www.detroitnews.com/story/business/columnists/daniel-howes/2018/10/08/ford-restructuring-aims-break-top-down-tradition-detroit/1568971002/
8 replies (most recent on top)
I would like to think Hackett knows what he is doing, it is hard to keep the faith. GDIA and FordPass-Mobility which are his babies are severely bloated. The people who design and build cars, of course we don’t need them, we need more data scientists, which we are still hiring.
Ford Credit flushed hundreds of millions of dollars down the drain on a poorly designed and implemented China project, the person in charge was made CIO.
IT is now spending millions undoing an organizational change that was the created by the now president of mobility.
How can this company remain relevant ?
Cuts started in building 5 today, Dunton England, NMPDC, Finance, Purchasing and VEV..
Still no new news about Salary cuts in Dearborn
Ford has 2 distinct problems: Bill Ford and Jim Hackett their both "Ham & Eggers"!
Ford has 2 distinct problems: Bill Ford their both "Ham & Eggers"!
With Ford's current trajectory I can't see the dividend, at almost 6.50%, being safe. If you recall Mullaly mortgaged all of Ford's assets, including the corporate logo, for $23 billion dollars at the front end of the recession. Mullaly took the "all or nothing" approach because it was all or nothing. The timing of the loan couldn't have been better. Mullaly suspended the dividend, chopped 30% of the wokforce and closed 25% of the production facilities. I can't imagine the Ford family not giving the nod for all of those measures. Draconian measures for draconian times. I don't see this guy making the hard choices.
As long as they do not cut the dividend, not considering the bonus dividend, the family will be complacent.
Cutting the dividend and then eliminating it was what almost cost Mulally his job regardless of Cramer' s hero worship
I can't imagine the Ford family letting this guy continue with a "wishful thinking" restructuring plan for too long a time. Ford may have built a cash hoarde but with the amount of debt they carry on their books they need to produce credible results sooner than later. The fact that Hackett deferred giving any restructuring details to the street has me wondering if he even knows what those details are. For the moment I would have to give him the benefit of the doubt but an Alan Mullaly he's not.