In every article I’ve been reading about the Detroit Automakers since late 2006/early 2007, they keep refering to 2010 as the finish date–by then, they say, the economy will have stabilized, oil prices will be reasonable, and people will begin purchasing fuel efficient and hybrid American cars released by GM, Ford and Chrysler in 2009.
Well, 2010 is only 14 months away. And Ford still sees it as the finish line:
Ford now has $18.9 billion in cash and $10.7 billion in credit to survive until 2010 — a year that Mulally and other automotive executives have been eyeing like a finish line.
Mulally said he hopes that the economy will begin rebounding then, just as Ford’s stable of new fuel-efficient cars from Europe begins arriving in U.S. showrooms. The automaker by then also will realize the full savings of its historic labor contract with the UAW, which removes billions in health care liabilities from its balance sheet.
WHY IS THAT THE FINISH LINE? How can we know when/if the economy will stabilize? How can Ford say “we will survive” if they can only make it through 2010 under current conditions?
That includes the all-new 2009 Ford F-150 pickup, which is part of the company’s best-selling F-Series lineup and a longtime source of profitability for Ford.
The automaker also is to launch a redesigned Ford Fusion midsize car early next year. Ford has said the four-cylinder engine versions of that vehicle will deliver better fuel economy than the Toyota Camry and Honda Accord.
“We have a good plan. We’re making progress on our plan,” Mulally said. “We’re on our way.”
I just don’t get this. I don’t see a plan. I see a bunch of executives scared shitless because they can’t offer any real solutions.
I think there needs to be a serious “Buy American” movement. It was serious during the 1970s and 80s, when Toyota began competing on the global marketplace. It should be both grassroots (with free bumper stickers) and government-sponsored (Department of Commerce commercials about the importance of the Big 3).
Moreover, there needs to be some sort of tax credit for buying or leasing an American car (Say, $6000) and for buying and leasing an American hybrid car (Say, $10,000). There is already one for hybrids, but it is for every hybrid, including the very popular and posh Toyota Prius. Get rid of that and make it only for American hybrids.
Who knows, the 2010 date might turn out to be right–the economy is due for a recovery. But I don’t know if now is the time to make those sort of projections, considering the unprecedented instability in our markets.
