Ford Once Looked To Be Ahead Of The Restructuring Game—Then GM Stepped Out Front23
The industry gasped when Ford announced earlier this year it would shed every single passenger car from its lineup, save for the Mustang. Ford also had an $11 billion restructuring plan in the works. Ford appeared one step ahead of its rivals.
Until GM dropped its own bombshell.
The automaker said the cuts it announced this past Monday will help open up $6 billion in savings in the next few years. The cuts include the end of production for numerous passenger cars (Chevrolet Impala, Cruze, Volt, Buick LaCrosse, and Cadillac CT6), and a 25 percent reduction to its corporate workforce. Thousands of production workers will be laid off as GM moves to idle four U.S. plants, too.
Ford, meanwhile, hasn’t announced much with reference to its reorganization. Jobs cuts at Ford have also been expected, but CEO Jim Hackett hasn’t delivered an announcement thus far. While the GM cuts sent its stock prices up by 5 percent, Ford shares reached their lowest point since 2009 this past October. Company bonds are quickly approaching junk bond status, too.
Both automakers have moved to transform their traditional businesses as the market moves away from sedans, into more utility vehicles, and combs through plans to introduce self-driving car technology and electric vehicles. GM has, arguably, been ahead of Ford in these regards, too. GM plans for 20 new electric cars by 2023 and has its Cruise Automation subsidiary to handle autonomous car development. Ford has handled all of these projects in-house with side investments. Its electrification roadmap is also fuzzier.
Perhaps news of Ford’s restructuring has dropped because of a potential major deal in the works. Ford has reportedly cozied up to Germany’s VW in recent months as the two explore synergies. What began as a potential partnership on commercial trucks may expand into a full-blown tie-up to save costs in budding segments such as EVs and automation.
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Except Trump isn’t threatening to yank Ford’s subsidizes including the EV ones…
Donald J. Trump
Donald J. Trump
Just signed one of the most important, and largest, Trade Deals in U.S. and World History. The United States, Mexico and Canada worked so well together in crafting this great document. The terrible NAFTA will soon be gone. The USMCA will be fantastic for all!
Remember when Sean Szymkowski told us NAFTA would never be renegotiated? Remember when he said Mexico and Canada wouldn’t give in to President Trump and the U.S.?
President Trump can’t stop WINNING!
So this is what winning looks like? The only one coming out ahead here is Trump himself. In his own mind.
With all due disrespect, you’re Fu%&ed in the head if you think that’s winning.
What the F*?K is wrong with you man!
“If I’m elected, you won’t lose one plant. You’ll have plants coming into this country,”
– Donald J. Trump, Winner
If you’re wondering where your plants have gone. Take a look on the other side of the fence.
GM got something like a $12 billion bailout by the American taxpayer. Instead of taking care of Americans, machete Mary Barra and Co. decide to kill people’s livelihoods and communities by slashing mostly American jobs…Send everything to Mexico and China!
Funny how Ford, Toyota, BMW, Mercedes, and Honda can make vehicles in the U.S. and are building more plants here, but GM has all kinds of excuses why it “must” build in Communist countries and ones that its workers low. Looks like GM bet wrong political in global strategy and now going to feel the wrath of our Commander in Chief. I hope he takes it to them like they slashed American jobs so easily.
Funny thing, if GM goes through with lopping Oshawa, Det-Ham, and Lordstown, they will have about the same number of US/Canadian assembly plants as FCA and Ford, and only 1 1/2 plants more than Toyota. I do not include Mexico because they do not pay living wages to their employees. Under Machete Mary. GM has been taken from the Number 1 global automaker to potentially one that will not be Number 1 in their home country.
GM hasn’t been #1 for years
Rank 2018 Rank 2017
1 1 Volkswagen Group
2 2 Renault Nissan Alliance
3 3 Toyota Group
4 4 General Motors
And GM paid back every dollar they were responsible for!
Maybe we find out that GM is ahead of the curve and they took steps to reduce personal before it got worse!
This is smart on GM part to identify the cars that are not profitable and act before not after!
An even smarter move would have been to retool the plants to produce something that is profitable instead of handing the market share over to Honda, Toyota, Hyundai, etc.
I wouldn’t be so annoyed with recent GM business decisions if they had consistently been putting out top-notch product after top-notch product. The problem is they haven’t recently, and then the products don’t sell. Then, they just cut and run.
CUVs are hot, but the new Acadia has been an unmitigated failure.
But, but Trump promised that manufacturers would be tripping over each other bringing back production back to the US. And now ALL of them, including BMW and MB are moving production to Mexico, Asia and even Europe.
WTF is this? An American Race to the Bottom game to see who can layoff the most employees and destroy the most communities? What about trying to build a business for a change?
In addition, Ford has seven new plants in China and GM has so many that it’s hard to track with full R&D facilities.
Every time they do it the stock prices soars.
Soars? The stock is down 13% YTD.
I guess we’ll just have to look to the new breed of American auto where it seems that quality and the customer do matter more than stock price. Like Tesla, Rivian, Workhorse, etc. It has started, and the legacy companies are panicking.
Business is being built at the expense of Canada and the US. This is where it has gone.
What happened? Vox ban you people so you came here?
We are being hunted like rabid dogs… Lol