Perhaps 'fired' is the wrong word, as that does imply that these white collar workers did something wrong. The only thing some 12% of Ford's salaried workforce did wrong is get hired by a company that dug itself into a hole relying on strong truck and SUV sales during the 1990s. Now, with consumers avoiding gas-hungry vehicles, the restructuring effort faltering amidst high gas prices, and news that the company has abandoned its goal of returning to profitability in 2009... cutting more salaried workers was inevitable.
Ford CEO Alan Mulally told reporters last week that sales of big trucks and SUVs crashed once gas hit $3.50 per gallon. In April, full-sized pickups accounted for 11 percent of sales. By the second week of May, the number had fallen to just 9 percent. "I don't think we've ever seen a decline week over week like this," Mulally said. "It was clear to us it was time to act." And act they did. While details have not been finalized, Ford expects to eliminate up to 12 percent of its salaried work force (with about 24,300 white-collar workers in the States, this means more than 2,000 positions will be gone). Ford Vice President Jim Farley couldn't sugar-coat the news, but he did try to spread the doom around when he spoke to his employees on Friday, saying "I would expect other car companies to make similar announcements... they have the same issues that we do -- even Toyota."
The SUV exodus means Ford's Flex has the potential to be a hit and it's gearing up for an onslaught of orders when sales begin this summer. Ford's group veep of marketing and communications, Jim Farley, told Automotive News that consumers leaving the full-size SUV fold and others who haven't considered putting a Blue Oval badge in their garage might be ready to give something like the Flex a chance. CUV sales have been strong over the last year, and Ford and Farley believe that the Flex could rack up 100,000 sales annually if the trend continues.
Joe Laymon isn't on the short list of successors for Ford CEO Alan Mulally, and it's unlikely you've ever heard of him, but if you want to get to the top at the Blue Oval, this is the guy you stop by Starbucks for on the way to work. Laymon is in charge of keeping a list of internal candidates ready in the event Mulally retires (or quits, is fired or for some other reason exits his position), which could come as soon as 2011 when he turns 65.
Both President of the the Americas Mark Fields and new marketing chief Jim Farley are on the short list of six execs on which the company is keeping tabs, but some less familiar names are considered, as well. Europe boss Lewis Booth, CFO Don LeClair, Europe COO Stephen Odell, and manufacturing chief Joe Heinrich round out the list of internal CEO candidates that will be given to the Ford board in the event of a Mulally exit. The list isn't static, either, as names are reviewed and added or dropped each year. If the board doesn't like its choices, though, the list is completely worthless and the company will again look outside its hallowed halls for help, just like it did in Mulally's case.
Until recently, Ford had only planned to sell the new Fiesta small car as a sedan in the US market. Judging from the reaction of readers in the comments here when we showed photos of the production version of the car, which is based on the Verve concept, most people disagreed. The vast majority of commenters chiming in said that they wanted the stylish little hatchback. Apparently, they aren't alone. When the Verve sedan concept appeared at the Detroit Auto Show, it was supposed to be shown alone. A last-minute change of plans was prompted by new Ford marketing chief, Jim Farley, who insisted that the original three-door hatchback concept from the Frankfurt show be displayed as well. The hatchback concept was on a European tour and was detoured for a stateside visit to judge reaction from American showgoers. It now looks like there is indeed a very good chance that the hatchback will be offered to US drivers in addition to the sedan.
Towards the end of 2003, Ford unveiled the Freestar. It was a lousy minivan, and its name wasn't much better. From there the f-bombs started pouring in with the Freestyle, Five Hundred, and Fusion. Ford had a Shakespearean stranglehold on alliteration, but outside of the decent success of the Fusion, Ford's effed-up naming convention brought little name recognition to the Blue Oval's car lineup. When Allan Mulally came to town, he scrubbed the Freestyle and Five Hundred names for the much more recognizable and respected Taurus and Taurus X, but unfortunately the basic shape of the family haulers didn't change enough for customers to want them.
Detroit News Columnist Daniel Howes accurately points out that Ford is back to effing up the names of its vehicles. The Flex arrives this summer, and the Fiesta arrives in 2010. The News says Ford marketing head Jim Farley questioned why the Flex name would adorn Ford's full-size crossover, but even the ex-Toyota wunderkind is unable or unwilling to lose the F. We don't understand the fixation Ford has with the sixth letter of the alphabet. The Dearborn automaker's two most successful cars of the past 40 years are the Taurus and Mustang, both of which are decidedly sans F. As a matter of fact, the Camry, Civic, Accord, Impala, and Malibu are all alliteration-free. Sure, if the Flex and Fiesta are great products they'll sell no matter what they're called, but we'd like for Ford to give us an effing break.
