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Wow! Is 10% haircut of all the white collar workers necessary?

Wow! Is 10% haircut of all the white collar workers necessary?

Tough times for Ford having to react to TESLA

"This move is in sync with the Dearborn, MI-based company’s restructuring plan as it is preparing for the future of autonomous and electric vehicles."

https://www.yahoo.com/finance/news/ford-f-plans-restructure-axing-113711...

EVRider | May 21, 2019

Haircut?

Magic 8 Ball | May 21, 2019

Boardroom talk for RIF or layoff.

Mike83 | May 21, 2019

You can thank Tesla with the Model 3 outselling competitors around the world so Ford changing to EV and Self driving tech. Probably all the ICE engine people and transmission and such might be let go.

https://www.apnews.com/0036437d785c483fb40c8a7dbe5a22d0

lordmiller | May 21, 2019

@Magic 8 Ball I say they are 4 years out to being where Tesla is now. Should be an amusing ride!

Magic 8 Ball | May 21, 2019

I am in a discussion/argument with someone else about this. I say Ford is doing this in reaction to TESLA and he says it has nothing to do with TESLA.

I am not big into the "mission" talk but from Elon's viewpoint he must be elated to hear Ford validate the "mission".

sixstring09 | May 21, 2019

It has nothing to do with tesla.

It has to do with ford trimming the fat and modernizing. The layers of management are excessive. They have pension obligations that are excessive. 100 year old companies need to adapt or go out of business. They need to be more profitable for the shareholders.

That is what this is about.

Magic 8 Ball | May 21, 2019

I just hope Ford doesn't go bankrupt, I still own a Ford.

Mike83 | May 21, 2019

4 years behind Tesla so you see so much FUD. The stock analysts have recommendations for F and GM besides their Exxon and Chevron and must spread Tesla FUD as a last resort. The M3 is so successful not even the fud can stop it. The auto execs see the writing on the wall and are laying off ICE people(see the article) and trying to get software people to catch up to Tesla.
Doubt if they will be successful.

andy.connor.e | May 21, 2019

I wouldnt believe ever, that Ford would be able to produce competitive EVs in 4 years. Absolutely no way. They just discontinued their entire sedan line, and to think they are just going to turn around EVs in only 4 years? Absolutely absurd, not a chance. They havent done anything in the last 2 decades except make their cars cheaper and cheaper (lower quality). The only companies who are actually taking EVs seriously are Non-American automakers.

Effopec | May 21, 2019

@andy.connor - Uh, Tesla??

Also, Ford does have EV development ongoing beyond the previous compliance car products. I'm hoping they won't be underwhelming, but we'll see. Tesla has raised the bar, and continues to raise it more. Really astonishing for a startup to accomplish what they have done.

SalisburySam | May 21, 2019

@andy.connor.e, I agree. But Ford, or GM or FCA or Honda or Toyota or Nissan COULD buy Rivian thereby jump starting the technology infusion. Then they could do things there are very good at: massaging a base technology into lots of flavors for different markets.

@Magic 8 Ball, I agree I don’t really want Ford to go bankrupt. I too have a Ford and need them for parts, service, etc. Oh wait, it’s a 1964 Thunderbird and they no longer do any of that for me. Never mind.

hokiegir1 | May 21, 2019

@Sam -- there are a series of certain events that could also end up with them buying Tesla and keeping it as a sub-brand (like Lincoln or Mercury) instead of Rivian, who hasn't yet put wheels to road. I doubt this would be anyone's first choice, but it's not too much of an outside possibility.

Mike83 | May 21, 2019

Funny how the stock analysts don't mention the soon to be producing Shanghai factory, the Powerwall and Powerpack deployments, the AI self driving chips, the Model Y production and the Semi buyers. If they continue to compare Tesla to just a car company I got to wonder how long they will have a job.

andy.connor.e | May 21, 2019

Ah, i am not anticipating that any of those automakers are going to purchase another EV startup company.

"Uh, Tesla??"

Ford is not Tesla. If Ford was Tesla, they would have used Teslas released patents to change their sedan line years ago. No one is invested in EVs as much as Tesla is. No company is appropriate to be compared to Tesla when it comes to EVs.

hokiegir1 | May 21, 2019

@Mike83 - I pointed out those exact things to hubby yesterday when we were discussing the stock drop. He started with "when do we cut and run?" (we are VERY small investors) and I responded with "when it gets back above our average buy price or later" He said "if...." and I brought up Shanghai and the Model Y specifically with how they will help.

andy.connor.e | May 21, 2019

@Mike83

Like weathermen, it doesnt matter if stock ANALysts are wrong, because they cant know. Its generally accepted that they dont know what will happen and they can be wrong all the time (as everyone has been with Tesla) and will remain employed.

RadOne | May 21, 2019

Also from that article, "Over the past six months, shares of Ford have outperformed the industry it belongs to. During the said period, shares of the company have gained 12.9% "
The stock also has a 5.84%yield. Not bad.

Magic 8 Ball | May 21, 2019

Well, I just checked. I have been holding the same 100 shares of F for 15 years now. Down 17.5% as I write this. One of my worst long term holdings to date.

Mike83 | May 21, 2019

Ford paying out their dividend won't last if they can't compete. I can see why all the FUD about Tesla which is doing better than ever IMO. That's where I place my investment for long term. Tesla has all sales profit put into expansion which a growth energy and software company should do. No dividends or stop growth, Please.

terminator9 | May 21, 2019

In todays world, facts don't matter, only the perception is. When you are a disruptor, the world is not on your side otherwise it wouldn't be called disruptor. The journey for Tesla isn't going to be easy - it does not matter if they have a superior product or everyone else is 3 years behind. Wall street wants to see profits, Tesla doesn't have any at this stage. If they made a shitty car with profit, they stock would be going up. If Tesla was funded by private equity that believed in EV, it would have been much better.

PhillyGal | May 21, 2019

@sixstring - "However, the company has revealed that it is hiring people for developing software, and in the areas of self-driving and electric vehicles."

I'd say that surely does have to do with Tesla, at least tangentially. Any time there is an industry disruption, others have to shape up or ship out... Tesla is far ahead in both the EV disruption and the autonomous driving disruption (though with the latter, there are other players as well.)

kcheng | May 21, 2019

"EVRider | May 21, 2019
Haircut?"

It's a finance term, used to indicate a %age drop in a bond's value, or a stock's value. Someone here is applying it to job cuts, seems hip and trendy.

Magic 8 Ball | May 21, 2019

Yeah, it is not like those workers will be losing anything at all, they will hardly notice the new look.

Magic 8 Ball | May 21, 2019

What I find particularly interesting, as PG points out, is Ford is not sharing numbers on how many new white collar people will come in to help move toward the new direction. I would have thought it would have made Trump and the investor base happier if they, for example, said they will be adding 15% but nope.

I forgot the number but when you can a certain percentage of the workforce you are required to announce. Not a good look for Ford.

RadOne | May 21, 2019

@M8B. I bought F beginning of the year, up approx. 20%.

Magic 8 Ball | May 21, 2019

Wow! So no fair! Waaaaaaaaaaaaaaaaaaaaah!

Magic 8 Ball | May 21, 2019

Oh, and wait 15 years I am sure you will do quite well (roll eyes).

texxx | May 21, 2019

The problem for legacy car makers isn't ignorance (well, maybe it is just a little), it's their dealers. I suspect they all saw Tesla's handwriting on the wall at least a couple of years ago and want to move into the EV space, but have you ever tried to buy an EV at a Ford or GM dealership? The dealers want absolutely nothing to do with those cars, I mean how the hell are you going to continue to screw clueless customers at the service desk when your car requires little to no service?? Dealers know where their money comes from, and they are going to fight the switch with everything they've got.

Earl and Nagin ... | May 21, 2019

Ford is probably releasing all white collar employees who seem like they may be a bit sympathetic towards EVs. Only like-minded thinkers will be tolerated :-(