05 September 2006

Ford’s new idea

It is always a glorious day when you realize someone has an amazingly strong grasp on the obvious and today is one of those days.
In a memo published in the Saturday Detroit News, Ford Chairman Bill Ford shared such outlandish and insightful thoughts like: ``The business model that sustained us for decades is no longer sufficient to sustain profitability.”
And, ``We must change to a new business model that requires greater bottom-line contributions from cars and crossovers, continued leadership in pickups in North America, healthier profits from all other business units, growth in Asia, greater integration of our global operations and an evaluation of strategic alliances.''
No wonder why Bill Ford went out of the industry today to name a new chief executive, Alan Mulally, executive vice president at Boeing. While Mulally will bring in an outsider’s view at the auto maker, with Bill Ford remaining as chairman, how many new ideas will be implemented.
It remains baffling to understand why Bill Ford remains blind to the trends in the industry. While it is easy to pass judgment from the cheap seats and Bill Ford remains mired in the middle of the action, but come on, the business model is no longer sufficient? It hasn’t been sufficient for years.
I wonder if he is thinking of bringing back the Pinto?
Talk to me.

0 Comments:

Post a Comment

<< Home