Thursday, June 11, 2009

Mustang Sally

**Disclaimer: I do have to preface this post with this one disclaimer. My father works for Ford, and has for the last 21 years. So there may be bias in my analysis, but I have tried to find a variety of sources to back up my claims.**

The last few months have seen very hard times for the American automotive companies, especially the Big Three: GM, Chrysler, & Ford. People have criticized these companies for a long time and said that they would be gone by now. And for a moment a few years ago, I actually agreed with them. Then came November 2008. When the automotive companies came before Congress the first time, they got chewed out about their private jets and it looked as if the Big Three had run out of luck. They were given one small homework assignment, come back in a month with a plan to restructure your company. Ford was the first one to "turn" it in. You want to know why? Because Ford had already implemented a plan to change the company. In the first quarter of 2008, they had actually made a profit. Bill Ford had understood before the reality of the current economic conditions were evident, that the company needed to change. And because he knew it was going to be a hard task, he stepped aside and let Alan Mulally take control. And Mr. Mulally took action. He put up the assets of the company in order to receive the credit the company needed before the credit crisis occurred. He started consolidating the company, cutting away unnecessary waste. Mulally was also smart enough to negotiate with the UAW before the crisis, in order to get the deal needed for the company. Alan Mulally was one of the smartest choices Ford made over the last few years, and he has done so much for the company, both in business choices as well as morale. As the New York Times called him, "Cheerleader & Chief." If you talk to Ford dealers, they are proud to be working for a company that is working so hard to do what is right.

And what do we see now? Ford did not have to take any of the TARP bailout for the Automotive companies. Instead of seeing the Big Three in the news, most of the news is about GM & Chrysler and their bankruptcy. Ford has been able to increase their market share according to BBC News, and will even increase their production by 10% according to the Wall Street Journal. And just in the past week, there was the announcement that the US Federal government would be buying more than 14,000 fuel efficient cars from American companies. And Ford was going to get 7,924, more than half of the contract! That plus the shout-out from President Obama about the fact that he himself drives a Ford hybrid shows that there is at least one company that has a chance.

I don't even know why I am writing this post, but I think it is important topic during this economic crisis. And especially now when it is easy to criticize companies for not behaving ethically, I would like to take this second to praise Ford. Ford takes good care of their employees. When Ford was in one of its lowest points 3 years ago, they offered pay-outs to their employees, including for some a year's salary so that they could find another job. Ford is trying their best to create a good company, one that is good for their customers, and one that is good for their employees.

And as a random side note, it is not the complete faults of the American automotive companies that they are in this mess. It was the American consumer that wanted large Trucks and SUV's. So that's what they made. In any business model, it is the wisest choice for a company to fulfill the needs (or wants) of the consumers. And that's what the automotive companies were doing.

I have always been a Ford girl, and always will be. One of my favorite pictures growing up is one of me inside a Ford Thunderbird that my dad brought home when he first started working for the company as a rep. But I am not a blind fan. They won my trust and my love through good products, and business ethics. I am proud to have a father who works for such a great company.

So, if anyone is out looking for a new vehicle, or is interested in what is going on in the car companies today, I would suggest looking at Ford Motor Company. Look for their newest car from Europe, the Fiesta, coming out this year, as well as the new Mustang.

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