sumzxr7
Registered User
Hey Guys…
Recently Ford announced their layoff plans, and it’s a shame considering how fast Ford has fallen in light of fierce competition. All of this, makes me think of all of the factors that have lead to Ford's stock plummeting to $4.36 (USD), well below other manufacturers.
In my opinion, I really think it all started with the introduction of the 1986 Ford Taurus (this car was their down fall - now let me present my arguments before I get shot down ;-) At the time, it was America's best selling car for many years....ahead of its time...and its because of this that they got complacent. Ford figured it sold well, so why fix it...even if it had major head gasket issues (3.8L), a crappy AOD Transmission, weak front end suspension components and rotting out rocker panels..... Keep in mind, the powers that be, decided to use the very same motor and transmission in many other applications such as the Windstar, Sable, Mustang, Thunderbird, Cougar and Continental to name a few. Well lets see, imagine if you owned one of these cars, and if the head gasket went, and then the tranny; would you buy another Ford again? Keep in mind its poor resale value for a lot of their models.. NO..and this is why they are where they are and their share price is at $4.36.
Ford got cheap and very complacent...and they are paying for it dearly now...keep in mind they knew the 3.8 had issues....it failed during prototyping. I even have an article from 1988 that states this as per Motor Trend magazine, when they tested the SC back in '88. Ford engineers said the Motor had issues, but that all of the kinks would be fixed...well they weren't. The car that made Ford make a huge comeback in the 80's, also brought them down. You see the irony in this? As billions of dollars was spent in engineering its revolutionary design, etc Ford neglected to put money into other areas, such as good quality head gaskets, and engine design, etc….by the time all was said and done, Ford continued to use the Motor in a lot of their cars, and kept deflecting blame, etc…..to me this doesn’t make sense? If they knew it had issues, why put it in so many cars…by the time the public caught on, loyal Ford Fans, went to Toyota and Honda and now the Camry is the best selling family car….and now Toyota stock is at $121.19 (USD) and Ford stock is at 4.36 (USD).
Toyota and Honda with their bland designs, continuously made improvements where needed in engine design, never got complacent and continually made cars that were reliable (sure they were bland) but they still sold well….my point is that they never rested, and always made improvements where needed…..Ford on the other hand kept riding this wave of late 80's success and figured it would carry them….
I mean, don’t get me wrong I still love Ford (I have owned for 4) but its one reason why I don’t drive one anymore….still have a soft for the SC and Stang…even though I know Ford is a lot better now……and very reliable..as I love the new Fusion and Edge, etc...i know they are a lot better because I am a car guy...but to the avg non car buyer, that is "ignorant" they would think otherwise, due to Fords past..
Hopefully I don’t get shot down, but I just wanted to state why I think Ford is where it is today. I didn’t want to sugercoat the issue..
Comments?
Recently Ford announced their layoff plans, and it’s a shame considering how fast Ford has fallen in light of fierce competition. All of this, makes me think of all of the factors that have lead to Ford's stock plummeting to $4.36 (USD), well below other manufacturers.
In my opinion, I really think it all started with the introduction of the 1986 Ford Taurus (this car was their down fall - now let me present my arguments before I get shot down ;-) At the time, it was America's best selling car for many years....ahead of its time...and its because of this that they got complacent. Ford figured it sold well, so why fix it...even if it had major head gasket issues (3.8L), a crappy AOD Transmission, weak front end suspension components and rotting out rocker panels..... Keep in mind, the powers that be, decided to use the very same motor and transmission in many other applications such as the Windstar, Sable, Mustang, Thunderbird, Cougar and Continental to name a few. Well lets see, imagine if you owned one of these cars, and if the head gasket went, and then the tranny; would you buy another Ford again? Keep in mind its poor resale value for a lot of their models.. NO..and this is why they are where they are and their share price is at $4.36.
Ford got cheap and very complacent...and they are paying for it dearly now...keep in mind they knew the 3.8 had issues....it failed during prototyping. I even have an article from 1988 that states this as per Motor Trend magazine, when they tested the SC back in '88. Ford engineers said the Motor had issues, but that all of the kinks would be fixed...well they weren't. The car that made Ford make a huge comeback in the 80's, also brought them down. You see the irony in this? As billions of dollars was spent in engineering its revolutionary design, etc Ford neglected to put money into other areas, such as good quality head gaskets, and engine design, etc….by the time all was said and done, Ford continued to use the Motor in a lot of their cars, and kept deflecting blame, etc…..to me this doesn’t make sense? If they knew it had issues, why put it in so many cars…by the time the public caught on, loyal Ford Fans, went to Toyota and Honda and now the Camry is the best selling family car….and now Toyota stock is at $121.19 (USD) and Ford stock is at 4.36 (USD).
Toyota and Honda with their bland designs, continuously made improvements where needed in engine design, never got complacent and continually made cars that were reliable (sure they were bland) but they still sold well….my point is that they never rested, and always made improvements where needed…..Ford on the other hand kept riding this wave of late 80's success and figured it would carry them….
I mean, don’t get me wrong I still love Ford (I have owned for 4) but its one reason why I don’t drive one anymore….still have a soft for the SC and Stang…even though I know Ford is a lot better now……and very reliable..as I love the new Fusion and Edge, etc...i know they are a lot better because I am a car guy...but to the avg non car buyer, that is "ignorant" they would think otherwise, due to Fords past..
Hopefully I don’t get shot down, but I just wanted to state why I think Ford is where it is today. I didn’t want to sugercoat the issue..
Comments?
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