Is Ford Still on it's Way Forward Program?

The latest with Ford is the hiring of Mulally from Boeing, to try and turnaround the company. While I didn't quite agree with Bill Ford heading the automaker, I don't think bringing in Mulally will get things done to get Ford on track. The next 6-9 months may be a good time to watch for bargains in Ford stock.

One can argue points for and against a new leader at Ford, but there are fundamental problems at Ford that need to be addressed, regardless of who is at the helm. I don't think Mulally can pull it off, and having a new leadership team in place won't fix things any time soon. The legacy costs with Ford autoworkers is a fundamental problem within North America, and needs to be part of any new restructuring plan for future survival. The secondary issue, is cars that people want and consider reliable.

I can't help but wonder if any Toyota execs were looked at to come into Ford? Bottom line is, Fords are not selling, and there is an issue with perceived quality and reliability issues with the product lines. The only exception might be the pickups, but, as we have seen, Ford's truck share has also declined with the advent of consumers moving more to cars, and away from the big gas guzzlers of years past.

What Ford needs to do, is spice up its cars, and inject more reliability into its product lines, and above all, reduce overhead and legacy costs. This is about servicing the consumer with a product that is reliable, looks good, and is fun to drive. I have yet to see anything in their lineup that can compete with the likes of the Chrysler 300, except for their reminiscing with the new Mustang Pony edition...this will appeal to the "car guys" only...Ford needs a product that is perceived by the general population, to be a good deal. Hiring Toyota people and sprinkling them within the ranks would be a good start...if anything, perhaps Toyota's culture might rub off onto Ford, and push them into the right direction.

Ford's stock price still has a way to go before it can be considered a "buy"...I expect the stock price to drop even further by the end of the next quarter, as Ford execs work to trim production, and come up with a game plan and new business model. If Ford seriously considers selling a stake in its financial arm, this will provide a big boost to the stock price.

In 2007, perhaps Ford shares can show gains like GM did this year. Ford will be worth watching, as changes start to happen by the end of the year. Although Mulally may not have been my first choice, I wish him well.