The auto industry struggles some more
Back when Ford Motor Co. stated that they would cut 30 thousand jobs, William Clay Ford Jr., chief CEO and great grandson to Bill Ford, announced that, in 2008, Ford would be back on their feet (maybe you can guess where I’m going with this article).
It seems, however, that Mr. Ford Jr. might be eating his own words about having the company back on track by 2008. The reason, or at least part of it, is the declining sales of SUVS. The explorer SUV dove 27 percent, and the expedition fell 30 percent, while gas prices rose 34 percent. Not many people are buying SUVs because of economical concerns and high gas prices. And, since Ford’s flagship car was the explorer, there are major problems.
Restructuring a company is a difficult task; however, it seems that the company is doing a good job at cutting jobs. While Ford announced they would cut 30,000 jobs in x amount of years, they’re actually ahead with that statistic.
Ford’s rival, GM, is looking better. GM’s restructuring plan is actually showing progress; because, their money-making-cars were not SUVs. Toyota, on the other hand, is thriving. Toyota can’t stop 10 min from building new factories and producing cars in the US.
The future of Ford is based on the dependence that Ford will “innovate” with cars that actually make money and people want. Times have changed, hence, companies, including Ford need to change. The auto industry is going through major changes, I sure hope the company Ford is build Ford Tough
- Automotive Intelligence
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