• Register Today It's free! This box and some ads will disappear once registered!

^^Searches ExplorerForum.com^^

Is Ford Motor Company in financial trouble ?



Join the Elite Explorers for $20. Gets rid of the ads!

Explorer Forum has probably saved you that much already, and will continue to save you money as you learn how to diagnose fix problems yourself and learn which modifications work without having to experiment on your own. Elite Explorer members see no advertisements, no banner ads, no double underlined links, can add their own profile photo, upload photo attachments in all forums, and Media Gallery, create and save more private Conversations, and more. Join Today. Your support is greatly appreciated.




donalds

Elite Explorer
Joined
July 12, 2015
Messages
2,761
Reaction score
741
Location
Stem
City, State
Nc
Year, Model & Trim Level
1999 ford explorer sohc
Interesting
 




94Eddie

Elite Explorer
Joined
September 18, 2003
Messages
667
Reaction score
128
Year, Model & Trim Level
2010 Mountaineer Premier
I think the constant price increases and push to shove ever more technology into cars and trucks is taking a toll on sales. This is making ownership of newer vehicles very expensive when warranties run out. Then there is the depreciation hit one takes on a new vehicle purchase and this is the main reason we haven't bought a new vehicle in decades. Ford has hurt themselves by going heavily to turbocharged engines, IMO, as this adds another very expensive repair item and complexity to a vehicle. Also, there have been some very bad design decisions from Ford. Turbo motors have been have been plagued with carbon buildup, waste gate failures and the internal water pump in the 3.5L engine will continue to hurt their reputation for years to come. I wanted to buy a 5th gen Explorer but after reading up on the Ecoboost and 3.5L engine issues I defaulted to a 2010 model. My wife drives a 2015 Edge with the 3.5L engine (did this before learning of the water pump issue) and we have a big decision to make about whether to keep it after the warranty runs out. If we sell it I can't see where we will buy another used Ford to replace it.

Ford isn't the only auto maker with these problems. Chrysler, GM, Nissan, Mercedes, BMW etc. are not making reliable, cheap to repair vehicles these days. IMO, Toyota has stayed away from this (i.e. turbo engines, bad design etc.) to a great degree and they are seeing the benefits of this. The whole industry has gone toward a product model that is not sustainable because it is pushing people away from buying new and instead buying used. I look at the new Explorers and see price tags of $50k-$60k and wonder who is buying them. Then I read about all the problems they are having with them and it is no surprise to me that Ford might be in financial trouble. Lastly, Ford deciding to stop car production (except for the Mustang) seems like a terrible idea. This will drop their sales volume a huge amount and put them out of a market segment that is far from dead. This will only make companies like Toyota, Honda, Subaru etc. stronger competitors.

Time will tell but I don't see how Ford, and other automakers, continuing what they have been doing for the past 10-15 years is a sustainable business model because it is raising the cost of ownership to unsustainable levels for the average person.
 
  • Like
Reactions: imp


donalds

Elite Explorer
Joined
July 12, 2015
Messages
2,761
Reaction score
741
Location
Stem
City, State
Nc
Year, Model & Trim Level
1999 ford explorer sohc
Seems like these auto makers are making cars for the younger crowd when the older crowd has to pay the price

Remember when you could buy a car and know it would out last the warranty
Now we worry will the warranty even cover factory mistake or missing part etc..
 


94Eddie

Elite Explorer
Joined
September 18, 2003
Messages
667
Reaction score
128
Year, Model & Trim Level
2010 Mountaineer Premier
Seems like these auto makers are making cars for the younger crowd when the older crowd has to pay the price

Remember when you could buy a car and know it would out last the warranty
Now we worry will the warranty even cover factory mistake or missing part etc..
My father always tried to drill into my head about the financial waste of buying a new car. It took me until I hit 30 years of age to see the wisdom of his words. I started a business then and had to put myself in a position to be able to sustain a low salary until the business ramped up. This was in 1993 and doing this showed me how buying new cars, going into debt etc. had nothing to do with my overall happiness. I haven't had a car payment since paying off my factory ordered 1989 Mustang LX 5.0L in 1992. Had I not started the business I would have just kept buying new cars/trucks and racking up interest payments. It would be interesting for me to calculate how much money this has saved me over the decades.

It is easier for younger people to justify buying a new expensive vehicle. It is also easier to get them to buy into the marketing hype of why they need a $60k vehicle. That said, I look around at the young people I know and very, very few of them own a brand new vehicle. They have bought used ones and intend to drive them until the wheels come off. They are realizing the true cost of buying new and especially buying new often. This is, IMO, the main reason we are seeing auto sales fall even when the economy is booming. Many, many people are not seeing the value in buying new and this group is growing larger as each new expensive model is brought to market. The industry has pushed ownership of many cars to be a disposable item like a microwave or toaster. When they break, many times the cost of the repair is greater than the value of the vehicle. The auto industry should be giving use buyers what we need which is affordable, easy to repair vehicles. Not what we want in our dreams where money is no object.
 


JCat

Active Member
Joined
June 22, 2002
Messages
489
Reaction score
9
City, State
Atlanta
Year, Model & Trim Level
98 Mountaineer

David Huggins

The inside scoop on the Explorer: the downtown Chicago plant that produces them is a disaster. From managers down to hourlies, they have all kinds of personnel issues with their employees at every level. This dysfunction is what has caused all the Explorer issues.

The plant is full of lazy, incompetent employees who cannot be replaced due to contractual reasons. Any vehicle being launched/built at that facility is doomed to fail until Ford heads to Chicago and cleans house.
Like · Reply · 1h

Greg Drallos

Winning !!!
Like · Reply · 1h

Rich Krisciunas

And people wonder why the Lions still suck every year.
Like · Reply · 2h

Tom Abbott

As a Ford stockholder, I find it incredulous that profits dropped 99% over last year, yet they are paying plant workers a $6600 bonus, while we watch the stock price languish at $9. Dividend of 6.5% of little consolation when stock has lost 30% while the overall market is up in excess of 20%, and Tesla stock has risen from $170 to $900. Time to dump this loser.
Like · Reply · 6 · 15h

Bob Jones

You should have sold when Mulally left, it started the slide not long after Fields was promoted. The bonus or whatever you're refering to is in the contract with the union.
Like · Reply · 1 · 6h

Tom Abbott

Bob Jones and that contract Ford agreed to is surely a problem when virtually no profit can generate a bonus of this amount for already well compensated workers. This management team led by Jim Hackett is a total disaster.
Like · Reply · 1 · 6h

Matt Turner
I wish I bought Tesla at $250. My friends are raking it in.
Like · Reply · 6h · Edited
Show 1 more reply in this thread


Liz Host-West
ordered an explorer at work 6 months ago almost. Still not here
Like · Reply · 2 · 17h

Kevin Mierzwa
Why don't you get rid of all the higher paid experienced people and higher new ones. Oh that's right you did. That's how the botched launch of the Explorer happed.
Like · Reply · 6 · 18h

Lillian Johnson

Look to your recruiting efforts. The back of the house cannot be blamed for the front of the house.
Like · Reply · 4 · 19h

J A McErlean

The Ghost of Lee Iacocca is not amused.
Like · Reply · 2 · 19h

Sharron Solomon

Nooooooo!
Like · Reply · 2 · 21h

Chris Grisdale
When are they going to get rid of the CEO. When you have an engineer at the helm the Auto makers do well. When a bean counter is at the helm it means a down turn is about to happen.
Like · Reply · 14 · 21h
 


donalds

Elite Explorer
Joined
July 12, 2015
Messages
2,761
Reaction score
741
Location
Stem
City, State
Nc
Year, Model & Trim Level
1999 ford explorer sohc
My father always tried to drill into my head about the financial waste of buying a new car
I was brought up the same
My dad would add ....fix it up make it fun take care of it ...
 


Josh P

Shaggin Wagon
Elite Explorer
Joined
February 18, 2015
Messages
1,482
Reaction score
186
City, State
Phoenix Az
Year, Model & Trim Level
1991 aerostar
This isn't just an issue with ford not making money. Many major restaurant chains have either closed or filed bankruptcy, Almost anything retail has declined or disappeared. If the economy is truly as strong as we are told then trucking companies wouldn't be going out of business at a record pace.
 
  • Like
Reactions: imp


94Eddie

Elite Explorer
Joined
September 18, 2003
Messages
667
Reaction score
128
Year, Model & Trim Level
2010 Mountaineer Premier
This isn't just an issue with ford not making money. Many major restaurant chains have either closed or filed bankruptcy, Almost anything retail has declined or disappeared. If the economy is truly as strong as we are told then trucking companies wouldn't be going out of business at a record pace.
Markets change and many times companies don't change their business models to survive it. Walmart is a good example of a company that was proactive in regard to the onslaught of Amazon and many other online retailers. Nearly everyone buys a great deal of goods online these days. We are all forcing this change to occur and then many of us complain about the change we are causing. Nearly all of us have become addicted to the convenience of online shopping and this is having a massive impact on retail sales. Businesses adapt or cease to exist and this is the way it should be for long term economic health and to ensure robust competition which is good for the consumer. Economies fail when they are forced to remain stagnant and are not allowed to change in regard to technological advancement and/or consumer demand.

The auto industry had to make sweeping changes in the 1970s and 1980s (especially the Big Three) and I think another big change is coming soon. The current business model of increasing complexity and price year after year is failing. The industry is no longer meeting the expectations of the consumer which is why sales of new cars are declining. Consumers want cars that are not disposable which is where we are these days. It doesn't take long before the cost of a major repair exceeds the value of the vehicle. Especially considering the extreme rate of depreciation of new vehicles. A $50k vehicle bought today will likely be worth $10k-$20k before the loan is paid off. IMO, the pricing structure will have to reset to reduce depreciation rates, complexity will need to be lowered and serviceability for repairs will need to greatly improve. Until this happens many, many potential buyers will continue to buy used vehicles and avoid ones that are disposable. In the end the consumer will get what they want since they control the flow of money. The question is which auto makers will give consumers what they want and survive and which ones will not and cease to exist.
 




Thread starter Similar threads Forum Replies Date
G Ford Motor Company Considers Taking the Company Private Auto Industry News 2
C Ohio Dept. of Education and Ford Motor Company Fund Join Forces on Education Program Auto Industry News 0
Rick Ford Motor Company Hybrid Sales Up 115 Percent As April Sets Best-ever Sales Record Auto Industry News 7
Rick Ford Motor Company Tops $4 Million In Hurricane Relief Auto Industry News 22
Paul Gagnon HELLO Ford Motor Company do you not know when to quit? Auto Industry News 20
Paul Gagnon HELLO Ford Motor Company, do you not know when to quit? Auto Industry News 0
Rick Ford Motor Credit Increases Payment Deferrals To Hurricane Katrina Victims Auto Industry News 0
F First Drive: 2002 Ford Explorer (Motor Trend) Auto Industry News 1
Rick The History of the First Ford Explorer - by Derek Elliot former Ford engineer Auto Industry News 3
allmyEXes Ford and Volkswagen Collaboration? Auto Industry News 3
Anime Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs Auto Industry News 7
L Ford cuts production at 5 plants, has big backload of cars Auto Industry News 1
S Ford Bronco / Ranger Confirmed Auto Industry News 2
Rick Explorer demand to keep Ford's Chicago plants busier this summer Auto Industry News 0
C Ford news Auto Industry News 15
Rick Ford to boost entry-level pay by $9.22 an hour, hire back laid off workers Auto Industry News 1
D 2016 Ford Explorer Auto Industry News 0
Tbars4 Ford, Castrol no longer sponsor John Force Auto Industry News 1
BrooklynBay New Ford Bronco. Auto Industry News 13
swshawaii 2016 Ford SVT Bronco Coming Soon Auto Industry News 6
Rick RIP William Clay Ford Auto Industry News 1
BrooklynBay Ford plans to unveil a solar powered hybrid concept car. Auto Industry News 7
Rick Ford Racing unveils 460ci small block Auto Industry News 6
BrooklynBay Ford recalls 370,000 cars because of corrosion in the steering shaft. Auto Industry News 1
BrooklynBay Ford recalls the 2013 Explorer, Taurus, and Lincoln MKS for defective child locks. Auto Industry News 0
JohnnyO New Pope Is A Ford Man Auto Industry News 0
R Ford's Oldest Known Survivor Sells For $264k Auto Industry News 3
Tbars4 Ford putting buttons back on Dash Auto Industry News 3
BrooklynBay Ford regenerative brakes rack up big energy savings. Auto Industry News 1
BrooklynBay Ford utility sales are growing while full size SUV deliveries are dropping. Auto Industry News 3
BrooklynBay Ford recalls 2013 Escapes & Fusions with 1.6-liter engines for overheating issues. Auto Industry News 0
BrooklynBay Ford recalls 6,500 vehicles for a child safety lock issue. Auto Industry News 0
BrooklynBay Ford recalls 465,000 vehicles for fuel leaks. Auto Industry News 0
BrooklynBay Ford plans to close their Australian plants in 2016 after 88 years of production. Auto Industry News 1
BrooklynBay Three Ohio drivers are suing Ford for the Ecoboost engine being a defective design. Auto Industry News 5
Tbars4 Oops: Ford apologizes for Ad in India Auto Industry News 1
BrooklynBay Ford & GM make official collaboration on advanced transmissions. Auto Industry News 0
Rick Ford Explorer Production Goes International as Iconic SUV Rolls Off the Line in Russi Auto Industry News 0
BrooklynBay Class action suit against Ford claims unintended acceleration danger. Auto Industry News 2
BrooklynBay Ford, Daimler, and Nissan partner to develop hydrogen vehicles. Auto Industry News 7
E Ford Developer Program Auto Industry News 0
BrooklynBay Ford marks 5 million Sync-equipped vehicles over 5 years. Auto Industry News 0
BrooklynBay 2014 Ford Transit Connect Wagon. Auto Industry News 0
BrooklynBay Ford is manufacturing the C-Max hybrid in their Michigan assembly plant. Auto Industry News 6
BrooklynBay Sticking accelerator pedals are being investigated on the Ford Taurus/Mercury Sable. Auto Industry News 0
BrooklynBay Ford invests $135 million in electric vehicles. Auto Industry News 0
BrooklynBay Ford is recalling 16,330 Transit Connect vans for faulty wipers. Auto Industry News 0
LONO100 ford sales are killing it, but sync is killing ford Auto Industry News 1
BrooklynBay Car parts made from cash? Ford tests "green" arm rests & trays. Auto Industry News 0
C Ford CEO is todays one-percenter Auto Industry News 32
Similar threads


















































Top