That its market value was recently surpassed by Tesla's likely have played an important role in the decision. This should send a warning shot to all auto company CEO's.
Their new CEO (Hacket) is known for offshoring MANY US jobs. Prepare for a bumpy ride... Ford workers!
I think a lot of ICE car makers completely underestimated Tesla. They believed in the old paradigm that EV cars are nothing but short range, cute little niche cars for city driving. And, they probably thought that Tesla would just be another start up that would go away when they could not make their luxury EV profitable. Sure, some environmentalists with money to burn will buy a Model S but it won't be a sustainable business. Now, with the soon to be released Model 3, Tesla market share soaring, the S still going strong, and Tesla going full speed ahead on full self-driving, they are realizing that Tesla is for real and trying to shift before it is too late.
This tweet about it was pretty funny:
You can almost say Mark Fields was fired by Elon.
There's always room for a great 2nd place company, ie: a Samsung to Apple, for Tesla. It's a tough call to see who actually is committed though. Everyone offering plug in hybrids/ electric versions of the same exact car for $10k more do not get it. We do not want a 1/2 solution when a full simpler solution is available.
You cannot do anything but launch a entire new model/line that is available as electric only. New cars are almost always status symbols first, utility second type purchase. No one cares if you drive a Ford Focus electric, you still drive a Ford Focus and paid way more to do so. Your resale value will suck, and your manufacturer isn't really committed to supporting your purchase long term.
Until an automaker other than Tesla truly commits to a complete model/vehicle lineup only available as electric, they will not see the profits and will get left behind.
I would not hold shares where the the majority cannot control the destiny of the company. A small nepotistic cadre of inbred accidents is not the best plan for future value.
Some not too kind comments of Ford and the new CEO by Trey Chowdhry.https://www.thestreet.com/story/14145380/1/see-why-this-analyst-thinks-n...
"On a Scale of 10, if Tesla is a 10; Ford is -1 ... yes minus 1," and the company is "toast.".
I first thought Jim Hackett has technology background because he lead Ford's mobility initiative for the past six months. It turns out he does not. He's just a "turn around specialist". Ford dose not need another "turn around specialist" it needs a visionary if the company wants to do well in this environment.
Man that's harsh.
I just hope if they fail the taxpayers don't have to bail them out.
KP in NPT
"Man that's harsh."
This is just the beginning. We are going to see more of it coming and it will become even worse for them. That Nokia analog is very appropriate. Ford at least sees it coming. Some others probably are still there hoping Tesla would just go away.
Blackberry. And Kodak. And Blockbuster. And subprime lending.
...and the Samsung analogy:
Samsungs catch fire dont they?
To me the huge issues with Ford, GM, etc. is the lack of software engineering, critical to future cars. Most of the software is supplied by OEMs. You can add some cute graphics to make your display unique, but underneath is the same core that everyone else has. Offering something innovative is almost impossible. Getting changes and fixes is often a multi-year process. The entire industry moves at a glacial pace, and I don't see how it will change or have any hope to catch up with Tesla.
Huh funny TT, I just read this article that says exactly that. :)
The guy who will lead Ford into the future is indeed a former office-furniture maker! We're leaving interesting times.
This guy is no "autonomy expert." That's straight b.s. from the Ford Board of Directors. There are a few experts in AI and Autonomy and this guy doesn't make the top 1000.
Tesla employs a Lego executive, a Burberry exec, why not an IKEA too?
And the Ford family should be admired for holding it together (thus far).
Usually statistics show that the 3rd generation in a business destroy it.
Considering today's news about Fords CEO, what are your thoughts about Mary Barra and GM going forward?
@Ross1 Those are marketing and store design people. Tesla has top software and hardware brains including one who was pretty much responsible for Apple's iOS we know today and one who designed Apple's A4/A5 and AMD's Athelon K7/K8 architecture. Above all Tesla's very CEO sold a game software he wrote at age of 13. What do you think Ford got?
Tropo I was just about to ask who we think Elon will fire next. Berra could very well be high on the list. The Bolt was all show and no substance. The way it's carried out it will not help GM's future a bit. So is that Cadillac subscription program. No idea what those will lead GM to other than to fill a couple powerpoint pages at board meeting to prove you're doing something. Perhaps what happened today will make Berra and GM to change although it's anybody's guess if she has the vision or the ability to do that. I'm not very optimistic about GM if you ask me.
Linkedin just published its annual study of top fifty companies IN THE WORLD people most want to work for:
Tesla is number 6 on the list just above Apple. If you're a top graduate from MIT majoring in AI do you want to work for Tesla and Elon or you want to work for Ford and Jim Hackett, that anything Tesla can do we can do too guy?
Australians designed the Show, Americans provided the Substance.
With the sales of pickup trucks and SUVs constituting 90% of Ford's profit, you might think they should concentrate on electrifying those largely useless vehicles for some efficiency. Instead, they seem to think self-driving vehicle technology is the place to invest. This is what happens when technology companies are controlled by financiers instead of engineers. In a few years, when even fools can finally understand the value of electric vehicles, what will be the stock price of a company that mostly sells self-driving pickups and SUVs?
The reason is simple. Self driving technology won't cannibalize their existing products (so they think) but electric car or truck would.
The new guy said "...we don't have to give in to Tesla". An interesting remark indeed.
carlk | May 22, 2017
You can almost say Mark Fields was fired by Elon.
Do you have to keep talking out of your back side?
Question: Why does Ford produce millions of cars that are not profitable and never will be?
The little shrimp sp apparently does not have even the slightest sense of humor. Well what do you expect little shrimp does have very small brain too.
Ford does make pretty money on selling trucks although that may not last very long. As for cars like GM they can only compete with price they will never make money out of them. The same is true for EV. They will not be able to make money there unless they could make EV as desirable as Tesla's and not having to compete with price alone. Worse is it;s hard for them to invest in battery production to lower the production cost because money need to be used to pay dividend or to buy back shares. Stock price would go down further if they don't do that. Investors would not trust them if they say they forgo profit to invest for future as investors would for Tesla. It's really a no win situation for them.
Exactly! It's a no-win situation. New CEO will yield similar results. Greed is the culprit here in America.
OTOH, Daimler/Mercedes has announced plans for a battery factory, EV cars, EV semi, and an energy venture as well. On the surface it sounds very similar to Tesla. I wonder how Daimler can enact change and invest the financial resources? My guess is either Daimler has been impacted directly by Tesla's success in recent years -or- the rules of business in Germany foster R&D spending more so than here in the US for our domestic companies.
Thank goodness they changed their CEO.... I was wondering how low my Ford stock would go...... ack!
Cracks are beginning to appear!