Some thoughts on the plan presented:

Its sad to hear how years of executive ineptitude and selfish unions will cost 30,000 jobs, however, it seems Ford finally gets that the big 3 as a concept is history and there need to resize to be competitive. Ford it basically cutting 25% of its U.S. operations, that pretty staggering. Rather than the big 3, we now have the big 6, which I would assume is GM, Toyota, Ford, DCX, Hundyai, Honda and Nissan.

The good news is that the man heading the operation, Mark Fields, it’s the man that turned Mazda around, rebuilt Ford Europe and spearheaded many of the Mazda/Volvo/Ford platform sharing programs. His attitude of Change or Die is what is needed, and he has a track record of success. Granted, he has never had a challenge like this, but if anyone can save Ford he can. (he also drives a RX7)

Ford finally owns up tot he fact that they have been making business plans around needing to use capacity at its plants due to labor issues. This is gone, the worst plants from a tech standpoint are being closed, and the are moving to flexible production, so theoretically, Mazda could build its Mazda3’s here in the U.S. if necessary. Ford has enough cash on hard from its sale of Hertz to buy out plant closings if necessary. (not stated but somewhat implied on the call).

Pricing will finally be brought back to reality, as excess production will finally be eliminated. You won’t see a vehicle with a $30,000 MSRP selling for $18,000. This will have a big improvement on resale values as well.

Some interesting points in the plan also included Mazda’s role in helping to rebuild the car segment of Ford, Mazda made a aftertax profit of ~$255 million (most its ever made) for the year, and has a stronger brand identity than ever. Mazda’s platforms are both highly praised, and well received, which means Mazda will get even more recognition inside the Company (which means they may get to do more outside of the box cars….think RX7 and Kabura) as they have clout inside of Ford.

The Mazda3/Euopean Focus/Volvo S40 model is the new development concept going forward (this is a very very good thing), as those cars are recognized as the top in their class, while sharing parts yet maintaining separate identities.

So what does this mean if you don’t really care a rats *** about Ford? Well, Mazda’s success will mean that they have more input into Ford products, Mazda will get more autonomy and likely get to take some more risks now that they have a real brand that sells not only niche sports cars, but has class leasing vehicles in every segment (Mazda3, Mazda6, CX7). All of this should guarantee Mazda will continue to produce the more niche sports cars we know and love, and the Rotary engine.

Ford can be saved without Chapter 11. I’m not sure about GM. But it’s a good day to be a Mazda Enthusiast, the brand, the cars, and the stock, have never been higher.

 

Task #1, bring the European Ford quality back home. Knowing that he has his roots in Ford Europe makes me think this can happen.