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Ford relying on new models, cost cuts to get through tough economic times
November 14, 2008
Source: Leftlanenews.

The economic collapse is forcing the Detroit Three to rethink their business plans, but Ford’s management is taking the company in a completely different direction than that of General Motors and Chrysler. Whereas the other Detroit automakers are slashing product development plans, Ford is actually fast tracking several new models in order to ensure the Blue Oval’s survival.

Although new product programs require huge amounts of cash, Ford sees the continued development of its product line as the only way to stay afloat in today’s highly competitive market. “We’re only going to be in business if we create products that people really do want and value,” Ford CEO Alan Mulally told The Detroit News. “This is the essence of creating a viable Ford.”

GM and Chrysler are taking the opposite approach and have already delayed or cancelled several product plans.

It remains to be seen if Ford’s strategy will be enough to save the company, but Ford’s management team is adamant that new products are the only way to ensure Ford’s survival. Mulally has been holding daily meetings with Ford executives from around the globe for several weeks to see where money could be freed up for new vehicle plans, with seven-day work weeks becoming the norm. So far only one vehicle has been delayed — a European crossover that has yet to be announced — thanks to cost cuts in areas such as advertising and executive bonuses.

In addition to setting the foundation for future Ford models, Mulally believes the progress that has been made will also make Ford a more attractive option for government aid. “Whoever is going to invest or loan us money wants to know we’re taking the actions to create a viable company going forward,” he said. “We are absolutely taking the appropriate actions.”

Ford’s current plans don’t rely on any help from the government, making the Blue Oval the frontrunner to survive these tough times.