Hyundai HQ in
2007 Hyundai Santa Fe
Ford Won't Rush Cuts
Ford Motor Co. won't move up the announcement of its next turnaround plan, the automaker's CEO Bill Ford said Tuesday, despite this week's announcement by General Motors that it will slash jobs at assembly, powertrain and stamping plants across its network, closing three assembly plants completely. The family heir and chief executive said he doesn't want to rush Mark Fields, who took over Ford's core
Big Three Have to Woo Back Consumers, Ford Says
"It's up to us (the Big Three U.S. carmakers) to prove to the American buying public…that our products are attractive and represent good value and also feature cutting-edge technology," Bill Ford, CEO of his namesake company said Tuesday. Ford faced a polite but tough audience during an appearance in
In his speech, the CEO suggested that his strategy for Ford is to focus on more fuel-efficient and environmentally-friendly vehicles. "We're transitioning to a more fuel-efficient fleet and a smaller fleet," he asserted in response to a follow-up question. The automaker is also shifting emphasis to hybrids and other alternative forms of power. But Ford stressed his belief that the government needs to participate in the transition. Among other things, he called for tax credits to help develop future powertrain technologies, as well as the infrastructure to produce and distribute alternative fuels. The CEO noted that right now, there are only 500 service stations providing ethanol in the entire U.S. Federal support is needed, he said, "so we can go from hundreds of stations, to thousands." Following his speech, Ford headed over to the White House to outline his plan to government leaders. The proposals were "non-partisan," he insisted, stressing that, "If we don't adapt" to a world without cheap and plentiful gasoline, "we deserve the consequences." -TCC Team
Dodge Has Challenger Coupe for
2006 Dodge Challenger
GM Cutting 30,000 Jobs, Eight Plants
Acknowledging the need for some "tough medicine" to stem mounting losses, General Motors CEO Rick Wagoner announced plans to close five North American assembly plants, while trimming production at two more. Along with cuts in powertrain and other operations, the turnaround plan is expected to eliminate 30,000 hourly jobs - but reduce costs by several billion dollars, according to GM, by the time the project is completed in 2008.
At that point, GM will wind up with 30 percent less North American capacity than it had in early 2002, but according to Wagoner, that should put production more in line with market demand. And operating at 100 percent capacity, he contended, should go a long way towards restoring the automaker's financial strength.
"It's tough medicine for us," acknowledged Wagoner, the troubled automaker's increasingly embattled chief executive. But there was little choice, in light of the North American market's increasingly competitive nature. "The difference in the business from 10 to 12 years ago has been startling."
General Motors has been the subject of almost daily headlines this year, few of them positive. The automaker's market share has been on the skids, and its employee pricing program provided only a brief and tenuous respite from the decline. Earnings have plunged, largely as the result of weak North American operations. Last month, the automaker reported $1.6 billion in third-quarter losses, though the blow was softened somewhat by an agreement with the United Autoworkers Union granting health care concessions that GM values at $15 billion.
The automaker's original goal was to shave about $6 billion in costs in 2006 from what Wagoner said Monday is a structural base "in the low-$40 billion range." With the plant cuts, that will increase to an estimated $7 billion in savings.
GM Cutting 30,000 Jobs, Eight Plants (11/21/2005)
"Tough medicine," but no guarantees, says Wagoner.
Hyundai HCD-9 Talus Concept Coming to
2006 Hyundai HCD-9 concept