Hackett to retire 1 October, Jim Farley to become CEOWe discussed many times already. You can't shrink your way to prosperity in the auto business. Unlike say... office furniture, auto business has high fixed cost and long product lead time. Which means volume matters. You can't just shrink volume to chase margin as a long term strategy because very soon, you won't have enough volume to cover fixed costs. Ford needs x million C2 vehicles to make investments for next gen make sense. If you start cutting volume in small markets 3 or 4 thousand units at a time, soon you stuck with a spreadsheet that is upside down with no possible return on investment.
But you also brought up an interesting point which I've mentioned a few times as well. With Transit and Ranger being the only profitable vehicles that Ford sells outside the US, it really boggles my mind that Ford doesn't put in more effort to sell these two vehicles in more markets.Wed, 05 Aug 2020 22:45:40 +0000
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