What Ford layoffs mean to existing owners
09-15-2006, 09:39 PM
#1
1st Gear Member
Thread Starter
Join Date: Jul 2006
Posts: 131
What Ford layoffs mean to existing owners
Unless you live under a rock, you know about the massive layoffs currently happening with Ford. We know this is bad for the workers. But what about existing Ford owners, specifically 'stang owners?
Service - it is possible that with the big reduction of workers making the cars, that will lead to a big reduction of staff at the dealers, including the service departments. Ford will be selling less cars, so dealers need less staff. Less cars to sell means less cars to service. Also, dealers will probably make cutbacks, hiring lower grade service people at a lower wage. Some say Ford service has always been bad, so imagine how bad it will be when it gets worse.
Car value - Fords historically don't hold their value too well (unless you drive a Ford GT). But with all the recent bad publicity around Ford, less people are going to want to buy a Ford. Less people will trust Ford. This makes the value of existing Fords decrease, even with Mustangs, which are a dime a dozen.
Image - 'Stang owners have been accustomed to getting positive attention. Now, when others see our 'stangs, people may start to wonder how cheaply our cars were constructed which helped lead to Ford's demise. Some of us already know firsthand how cheap our cars were constructed, but now the whole world will know.
I hope I am wrong about all this. But logically, I don't think so. The news is saying it will be several years until Ford can recover. Although they'll never recover if they fail to gain respect and a good reputation.
On the otherhand, maybe it will be the 'stangs which will be Ford's only saving grace during their hardtimes in the next few years.
Service - it is possible that with the big reduction of workers making the cars, that will lead to a big reduction of staff at the dealers, including the service departments. Ford will be selling less cars, so dealers need less staff. Less cars to sell means less cars to service. Also, dealers will probably make cutbacks, hiring lower grade service people at a lower wage. Some say Ford service has always been bad, so imagine how bad it will be when it gets worse.
Car value - Fords historically don't hold their value too well (unless you drive a Ford GT). But with all the recent bad publicity around Ford, less people are going to want to buy a Ford. Less people will trust Ford. This makes the value of existing Fords decrease, even with Mustangs, which are a dime a dozen.
Image - 'Stang owners have been accustomed to getting positive attention. Now, when others see our 'stangs, people may start to wonder how cheaply our cars were constructed which helped lead to Ford's demise. Some of us already know firsthand how cheap our cars were constructed, but now the whole world will know.
I hope I am wrong about all this. But logically, I don't think so. The news is saying it will be several years until Ford can recover. Although they'll never recover if they fail to gain respect and a good reputation.
On the otherhand, maybe it will be the 'stangs which will be Ford's only saving grace during their hardtimes in the next few years.
09-15-2006, 09:46 PM
#2
2nd Gear Member
Join Date: Jul 2006
Location: VA
Posts: 344
RE: What Ford layoffs mean to existing owners
I'd like to point out that GM is in just as much, if not more, trouble as Ford.
The reason why the press is all over Ford at the moment is because they're taking the steps necessary now (some say drastic) to keep the company solvent for the foreseeable future.
The one thing Ford has going for it is that the company has huge cash reserves (GM does not), hence it's credit rating in bond markets will be maintained.
Is it gonna be rough ride?
You bet - and I agree that we may very well see Ford's less-than-stellar reputation when it comes to service decline even further.
But by the same token I don't think the fat lady's anywhere near the stage yet ... much less the microphone.
The reason why the press is all over Ford at the moment is because they're taking the steps necessary now (some say drastic) to keep the company solvent for the foreseeable future.
The one thing Ford has going for it is that the company has huge cash reserves (GM does not), hence it's credit rating in bond markets will be maintained.
Is it gonna be rough ride?
You bet - and I agree that we may very well see Ford's less-than-stellar reputation when it comes to service decline even further.
But by the same token I don't think the fat lady's anywhere near the stage yet ... much less the microphone.
09-15-2006, 09:49 PM
#5
1st Gear Member
Thread Starter
Join Date: Jul 2006
Posts: 131
RE: What Ford layoffs mean to existing owners
GM is in better shape than Ford, according to this: http://money.cnn.com/2006/09/15/news...ion=2006091510
09-15-2006, 09:54 PM
#7
6th Gear Member
Join Date: Jan 2006
Location: Laredo, TEXAS
Posts: 6,054
RE: What Ford layoffs mean to existing owners
Yeah, at $8 buy a lot... the stock can only go up an if not there will probably be a government loan... but honda does better business than the government so honda an ford will merge an then we willl all be ricers... 
09-16-2006, 01:37 AM
#9
3rd Gear Member
Join Date: May 2006
Location:
Posts: 700
RE: What Ford layoffs mean to existing owners
I'm not sure how many few cars Ford will be selling. Ford is selling fewer SUV's and trucks, yes, but sales of the triplets Fusion / Milan / Zephyr has actually increased significantly, they just had their best month ever this summer and of course Mustangs are doing well. Ford car sales are actually doing well and continue to grow.
They'll reduce capacity and return to profitability in a few years, probably at less market share, but then again, BMW, Ferrari, and Porsche have extremely low market share, I bet. After all, making a good profit is more important than number of units sold. The Ford family still has 21 billion dollars in the bank, too.
The media is a bit misleading, too. For example, last year Ford's total profit was actually 2 billion dollars, thanks to earnings from Ford Credit. The total auto operations lost money, true.
http://www.thecarconnection.com/Auto...175.A9925.html
The nuclear scenerio is a merger or purchase by another company. Ford sold 6.8 million vehicles worldwide last year, that's too many units for the brand to simply disappear.
http://www.corporate-ir.net/ireye/ir...item_id=806910
Service: Private garages do as well, if not better than dealers. I have a wonderful local mechanic that I can trust. He knows Fords in and out. Fewer dealerships does not mean that quality service won't be available from someone else. Parts are the same way. My friend has a 1968 Mustang and he buys his parts off the rack at Advance Auto. Ford hasn't stocked some of the parts in decades, but you can buy them at any neighborhood auto parts store. If people are driving it, then there will be parts and service available.
Car Value: True, Fords lose value. In fact, there is an argument that domestic car buyers EXPECT the car to depreciate and huge discounts on new models. I'm a good example. I don't understand Honda used car prices, for example. They don't lose much of their value after the first year, so why bother even buying used, unless you really like the car? Domestics are actually generally an excellent value used. If every car were an import, then the resale value would probably decline, too, since lower income buyers and people who just won't pay it (like me!) would still need used cars.
It may seem like everyone has a Mustang because you own one, but they are not "a dime a dozen". In 2005 192K Mustangs were sold, probably 33% were GT's (sorry, I don't have that stat!). Sport models can sell well, but are seldom in the top 10.
Here are the top ten sellers last year:
Ford F-Series
901,463
Chevrolet Silverado
705,891
Toyota Camry
433,703
Dodge Ram
400,543
Honda Accord
369,293
Honda Civic
308,415
Nissan Altima
255,371
Chevrolet Impala
246,481
Chevrolet Malibu
245,861
Chevrolet TrailBlazer
244,150
Image: That's really subjective. (I get a lot of "Dukes of Hazzard" jokes, but that was a Charger, so I don't know why. Usually, these jokes are actually positve. Weird.) Most people really like the car and their sales are very strong. It's a class sales leader.
I'm not sure what your definition of cheap construction is. Have you experience many serious breakdowns? Do you have problems with paint? ( 5 year warranty on that!) It seems like a solid design to me.
They'll reduce capacity and return to profitability in a few years, probably at less market share, but then again, BMW, Ferrari, and Porsche have extremely low market share, I bet. After all, making a good profit is more important than number of units sold. The Ford family still has 21 billion dollars in the bank, too.
The media is a bit misleading, too. For example, last year Ford's total profit was actually 2 billion dollars, thanks to earnings from Ford Credit. The total auto operations lost money, true.
http://www.thecarconnection.com/Auto...175.A9925.html
The nuclear scenerio is a merger or purchase by another company. Ford sold 6.8 million vehicles worldwide last year, that's too many units for the brand to simply disappear.
http://www.corporate-ir.net/ireye/ir...item_id=806910
Service: Private garages do as well, if not better than dealers. I have a wonderful local mechanic that I can trust. He knows Fords in and out. Fewer dealerships does not mean that quality service won't be available from someone else. Parts are the same way. My friend has a 1968 Mustang and he buys his parts off the rack at Advance Auto. Ford hasn't stocked some of the parts in decades, but you can buy them at any neighborhood auto parts store. If people are driving it, then there will be parts and service available.
Car Value: True, Fords lose value. In fact, there is an argument that domestic car buyers EXPECT the car to depreciate and huge discounts on new models. I'm a good example. I don't understand Honda used car prices, for example. They don't lose much of their value after the first year, so why bother even buying used, unless you really like the car? Domestics are actually generally an excellent value used. If every car were an import, then the resale value would probably decline, too, since lower income buyers and people who just won't pay it (like me!) would still need used cars.
It may seem like everyone has a Mustang because you own one, but they are not "a dime a dozen". In 2005 192K Mustangs were sold, probably 33% were GT's (sorry, I don't have that stat!). Sport models can sell well, but are seldom in the top 10.
Here are the top ten sellers last year:
Ford F-Series
901,463
Chevrolet Silverado
705,891
Toyota Camry
433,703
Dodge Ram
400,543
Honda Accord
369,293
Honda Civic
308,415
Nissan Altima
255,371
Chevrolet Impala
246,481
Chevrolet Malibu
245,861
Chevrolet TrailBlazer
244,150
Image: That's really subjective. (I get a lot of "Dukes of Hazzard" jokes, but that was a Charger, so I don't know why. Usually, these jokes are actually positve. Weird.) Most people really like the car and their sales are very strong. It's a class sales leader.
I'm not sure what your definition of cheap construction is. Have you experience many serious breakdowns? Do you have problems with paint? ( 5 year warranty on that!) It seems like a solid design to me.
09-16-2006, 02:02 AM
#10
3rd Gear Member
Join Date: Sep 2006
Location: Indianapolis
Posts: 770
RE: What Ford layoffs mean to existing owners
Spuddog,
Uh, Ford's credit rating is 'junk' according to Standard & Poor...
Yes, they have a lot of cash, predicted to be $20B by the end of the year.
I wouldn't buy Ford stock and I doubt any analyst would recommend it.
But I did my part, I bought an '06 less than a month ago!
Uh, Ford's credit rating is 'junk' according to Standard & Poor...
Yes, they have a lot of cash, predicted to be $20B by the end of the year.
I wouldn't buy Ford stock and I doubt any analyst would recommend it.
But I did my part, I bought an '06 less than a month ago!