A Restless Ford Motor Picks New Leader

Ford Motor Company,prodded by anxious shareholders,who have seen rival Tesla Motors overtake Ford in market cap recently,has chosen insider Jim Hackett to replace longtime Ford executive Mark Fields.Ford's executive chairman,Bill Ford,great grandson of company founder Henry Ford,denied that Fields had been fired.They simply sat down together and decided it was time for new leadership,Mr.Ford said.
Mr.Fields had replaced the retiring Alan Mulally,who was credited with shepherding Ford through the Financial Crisis.*
Mr.Hackett,a Ford board member,had been serving as Chairman of Ford Smart Mobility,the unit charged with crafting Ford's response to a changing transportation sector rapidly altered by firms such as Uber,Lyft and Google.Mr.Fields had been CEO for only three years and kept the company profitable,although its core auto manufacturing business has shown lackluster results as of late.*
In a previous position as CEO of office furniture maker Steelcase,Mr.Hackett shifted the company from cubicles to the rising open office format.From 2014-2016,he was interim athletic director at the University of Michigan,bringing on NFL coach Jim Harbaugh and hence restoring Michigan football to competitiveness.Bill Ford noted that:
These are really unprecedented times,and it really requires transformational leadership during these times.*
Ford's first electric SUV won't be ready till 2020.*
Ford Motor Company (F)

Ford Comes Recommended

Ford Motor Company has reported its Q1 earnings.Ford is without question the auto manufacturer that I want to own,says Gary Bradshaw of Hodges Capital Management.Their numbers are excellent and I think Ford will build on that momentum going forward.
I think we're still early in the cycle.Out a couple of years,we could see earnings at 3+.At that level,I think Ford is an excellent value.
I think there's a lot of pent-up demand for cars;you can't just drive them forever.Ford had great margins as well as revenue.Alan Mulally and his team have done a great job of being profitable.He's doing everything right at the moment.I think he is the best manager there is out there,Mr.Bradshaw concluded.
Ford had its best quarter since 1998.Profits were up 22%.CEO Alan Mulally said they're gonna add 7,000 new jobs over the next two years.When you have the strength of the product line,it shows the power of free cash flow.We have paid back 15 billion in debt the past year,Mr.Mulally pointed out.
Ford cautioned,however,that the cost of production and materials will go up again next year.That could crimp profit margins.
Ford Motor Company(F)

Ford's Recovery Vision

We believe with all the government actions,the economy will begin to come back in Q3 and Q4 of this year,Ford CEO Alan Mulally stated.We took decisive action last year to reduce our inventory,and we are clearly on tremendously good progress.The plan is the right plan.We're very confident for the long term.Our new product line is sparking some new demand.All the things in our control,we're taking very aggressive action on,Mr.Mulally pointed out.

Ford Losses Shrinking

Ford CEO Alan Mulally notes that their cash burn rate is less than 5% of what they had in Q3 and Q4 of 2008,and they believe they can lower it for the rest of this year.They also validated their guidance of returning to profitability by 2011,Mr.Mulally said.The supply base is the most fragile base of support.We started this restructuring two-and-a-half years ago,the executive remarked.We have a good agreement with the United Auto Workers.Ford has the money to continue this transformation.We keep a continuing dialogue with the government,Mr.Mulally revealed.

Ford Vehicles Excel

The Ford F-150 won Truck of the Year honors at the recent Detroit Auto Show.The Ford Fusion hybrid gets 41 miles per gallon,which is 8 miles per gallon better than the Toyota Camry.It also has a five-star safety rating.Most people believe we've got the finest lineup we've ever had,Ford Motor Company CEO Alan Mulally says.Ford gained market share between October and December 2008.We probably have the best car lineup in the business.It is well-balanced.We're gonna be there with a full family of vehicles.We're gonna be a turbo when we finally come out of this recession,Mr.Mulally predicted.

Ford Presents Plan

Ford Motor Company has presented its recovery plan to Congress,along with its peers Chrysler and General Motors.Ford intends to return to profitability by 2011,speeding development of fuel-efficient vehicles such as an electric van and an electric car by 2010.The old line firm will devote 14 billion dollars to advanced technology research,while management will forgo bonuses and CEO Alan Mulally works for one dollar a year.Ford will close two plants by the end of the year and plans to sell its Volvo unit.Although Mr.Mulally says Ford has the near term liquidity it needs,it would like nine billion in bridge financing,in case the financial crisis is protracted.One Nobel laureate,Paul Krugman,thinks the crisis may run until 2011.Before the financial crisis,the U.S. auto industry was gaining strength.Now all automakers worldwide are in difficult straits.

Ford In Best Shape

Of the three U.S. automakers,Ford Motor Company is in the best financial shape.According to CEO Alan Mulally,Ford has enough money to make it through next year without government assistance,and may never need it at all.Nonetheless,the old line firm would like some aid to fully ensure it survives,and is appealing to Congress along with General Motors and Chrysler today.Ford introduced six new models at the recent Los Angeles auto show,including a hybrid version of the Fusion.Ford is staking its future on small,fuel-efficient models,rather than the trucks of its past.

Ford Motor Improves

Ford Motor Company(F) reported better than expected earnings for Q1.The Michigan automaker showed an increase of .05/share versus an estimate of -.16/share.Revenue was 39.4 million U.S. versus an estimate of 38.5.Strong profits came from its European and South American operations.CEO Alan Mulally attributes the success to Ford's aggressive restructuring program and increased market share from its new products.In recognition of the good report,billionaire investor Kirk Kerkorian's Tracinda Corporation is seeking a greater stake in Ford.Tracinda is offering 8.50/share for 20 million more shares of Ford common stock.Ford welcomed this confidence in it.This purchase would raise Tracinda's ownership of Ford to about 5.6%.

Ford Responds To Economic Slowdown

Ford Motor Company(F) isn't just sitting around watching a slowing economy.CEO Alan Mulally says Ford has planned for a slowdown.It is reacting with a little bit less production.Although the Edge crossover vehicle has been a big hit,winning the JD Power and Associates "Most Appealing Midsize Multi-Activity Vehicle" designation,Ford will continue to make production adjustments.It is carrying out a strategic review of the Volvo brand to strengthen it,not sell it.Ford has lost a billion dollars in North America,but it is still aiming for profitibility in 2009.With the success of the new cars and utility vehicles,Ford should be able to stabilize in 2009.There is no reason for the automaker to seek a partner or cash infusion.This has been a year of honors for Ford.In late October,Consumer Guide Automotive recommended a number of Ford vehicles,including the Ford Fusion,Mercury Milan,Ford Taurus,Mercury Sable and Ford F-150.They ought to be strongly considered by customers for their price,features,fuel economy,reliablity,resale value and accommodations.One of the most popular features on Ford's 2008 line-up is the Sync voice recognition system,a collaboration with Microsoft(MSFT) that took eighteen months to develop.Walter Mossberg of The Wall Street Journal praised Sync for being a surprisingly reliable,very well done method for integrating digital devices,such as cell phones and MP3 players,into a car.Ford vehicles also garnered safety honors from the Insurance Institute for Highway Safety.Honorees included the Ford Taurus,Mercury Sable,Volvo C70,Ford Edge,Taurus X,Lincoln MKX and Volvo XC90.A University of Michigan customer satisfaction survey,conducted by its National Quality Research Center,gave Ford's Lincoln and Mercury brands an 86 out of 100.Ford is excited by the data.It shows that what they're doing is working,according to spokeswoman Anne Marie Gattari.Ford shares traded down this morning,at 6.73.

Ford Confident Of Profits

Alan Mulally,CEO of Ford Motor Company(F),still expects the automaker to reach profitability in 2009.Speaking yesterday at a plant opening in Nanjing,China,Mulally said the housing slump will likely slow the economy.Ford is keeping a close eye on the situation.No doubt it is also carefully watching General Motors Corporation (GM) negotiate with the United Auto Workers union,with which it also needs to deal.For the first time since 1976,GM workers went on nationwide strike in the midst of talks yesterday.UAW president Ron Gettelfinger bitterly criticized GM,accusing it of conducting a one way negotiation,to the disadvantage of the workers.From Thursday to Friday,GM made only one concession-regarding a cap on profit-sharing.The UAW had constantly worked with GM over recent years,so it was disappointing to see them act as if they really didn't care about the strike deadline.While the strike continues,GM stands to lose 100 million dollars a day.It has 32 billion in cash on hand.As 12,200 vehicles a day are not produced,Canadian plants will have to shut down by Thursday or Friday,and Latin American plants by Saturday.In the U.S.,73,000 workers are idle,drawing 200 dollars a week from the UAW.The main problem in the talks seems to be the UAW's insistence on job security,which is difficult for GM to commit to for years in advance.David Reilly of Rydex Investments thinks the strike would have to go on for a long time before the stock market to be affected.Yet with the credit crunch and slowing economic growth,defensive caution is warranted by investors.Consumer staples and utilities look safe to him.Investors might consider Procter and Gamble (PG) and Duke Energy (DUK) in those sectors.Among automakers,Ford shares rose yesterday,while GM shares fell.

Smiling In The Gloom

While most stocks were plummeting last Thursday,Ford Motor Company was gaining.That is why CEO Alan Mulally was smiling.Ford had just posted its first profit after 7 consecutive quarters of losses.The soft-spoken leader said he wasn't really surprised by the results,and he was cautiously optimistic about reaching a deal with the United Auto Workers union.Although there could be setbacks ahead,by the end of 2009,Ford should be back in the black for good.The automaker is exploring the sale of its Jaguar and Land Rover divisions,and conducting a strategic review of its Volvo unit.Sixteen plants are to be closed,paring 45,000 jobs.The Ford Edge is the best-selling crossover vehicle,and 14 Ford vehicles recently won J.D. Power quality awards.Ford was the most actively traded stock on Monday.This morning,General Motors(GM) also released good second quarter numbers.