Ford names new CEO!

[TraumaRN]

http://money.cnn.com/2006/09/05/news/companies/ford/index.htm


Perhaps this is what Ford needs...some fresh non-auto blood. At least my dad is retiring next year. Perhaps we'll see some more redesigns and whatnot. I'm hopeful.

Comment.

 

[Gigantopithecus]

All of Detroit is being leeched by anachronistic UAW contracts. I read somewhere the other day that between pensions, health insurance, paid time off, etcetera GM pays 2.9 people for every 1 person who's actually working for them. Yes, Detroit has made some serious market miscalculations (SUVs instead of fuel efficiency, skipping hybrids for hydrogen, etc.) at the executive level, but I think its plight is due more to the UAW than poor management. The UAW has outlived its utility, it's now hurting the American economy by crippling one of our most important industries.

 

[Genx87]

I remember an article last year that outlined some furlough program that was negotiated into the UAW contracts where some 12,000 works dont work, but sit around all day collecting between 27 and 32 bucks an hour.

Doing the math that is close to a billion a year in wages for people who dont even work. Now tack on the health benefits and other perks I am sure the Union has negotiated and you will see why the Auto, like the Airline industry is unable to make ends meet and will either have to shed the unions or collapse completly.

 

[TraumaRN]

Originally posted by: Gigantopithecus
All of Detroit is being leeched by anachronistic UAW contracts. I read somewhere the other day that between pensions, health insurance, paid time off, etcetera GM pays 2.9 people for every 1 person who's actually working for them. Yes, Detroit has made some serious market miscalculations (SUVs instead of fuel efficiency, skipping hybrids for hydrogen, etc.) at the executive level, but I think its plight is due more to the UAW than poor management. The UAW has outlived its utility, it's now hurting the American economy by crippling one of our most important industries.

I think it's a combonation of both. I think the Big 3(and the UAW in turn) were very short sighted and arrogant when it came to dominance of the north america market for cars/trucks(back in the 50/60/70s). Now it's coming back to bite them in the ass.

My dad was one of the smart ones at least. He'll be retiring just in time for a buyout, plus he'll get pension plus he's been stocking up on his 401K for years. While I agree the UAW is leeching a bit, like I said it's not just their fault. Arrogance and Short Sightness are big faults.

 

[Zedtom]

Ford must take bold measures to reorganize and slim down in those divisions that are top heavy with management. The UAW is a nice scapegoat, but the decisions in the board room are what determine the long term strategy.

What is Fords strategy? If they think that SUV's and pickup trucks can carry the company while they rethink smaller hybrids...they better hurry. If they want a European alliance to help out, they aren't going to be able to carry a huge labor load, and that means downsizing.

 

[Zorba]

Originally posted by: Gigantopithecus
All of Detroit is being leeched by anachronistic UAW contracts. I read somewhere the other day that between pensions, health insurance, paid time off, etcetera GM pays 2.9 people for every 1 person who's actually working for them. Yes, Detroit has made some serious market miscalculations (SUVs instead of fuel efficiency, skipping hybrids for hydrogen, etc.) at the executive level, but I think its plight is due more to the UAW than poor management. The UAW has outlived its utility, it's now hurting the American economy by crippling one of our most important industries.

The UAW does not write their own contracts. In order for them to get paid redulicious amounts of money the management must aprove it. Futhermore, the unions walk all over Boeing just as much as they do Ford/GM, so I am not sure bringging in Mulally is going to help with that issue.

Why doesn't Detroit try breaking the Unions? Run production rates as high as they can for about 6 months to build up inventory right befoer the contract comes up, and then let them strike forever until they meet the company's demands. Cat did this in the 80s. Spirit Aerosystems was also able to get a lot of UAW last summer simply by not backing down.

I'll admit I don't know a lot about union laws, etc, just what I've picked up from working around them. But I do know that an overpaid employee is a sign of poor management.

 

[Strk]

Originally posted by: Zedtom
Ford must take bold measures to reorganize and slim down in those divisions that are top heavy with management. The UAW is a nice scapegoat, but the decisions in the board room are what determine the long term strategy.

What is Fords strategy? If they think that SUV's and pickup trucks can carry the company while they rethink smaller hybrids...they better hurry. If they want a European alliance to help out, they aren't going to be able to carry a huge labor load, and that means downsizing.

Since you bring up Europe, although not in the same context, Ford needs to start bringing over its Europe line -- or at least parts of it. It has a lot more fuel efficient options than the American line. Ford has also done some nice upgrades that we're still waiting for (new Focus, especially in regards to an upgraded interior, which is typically a sore point for many American marques).

 

[codehack2]

Originally posted by: Zorba

Originally posted by: Gigantopithecus
All of Detroit is being leeched by anachronistic UAW contracts. I read somewhere the other day that between pensions, health insurance, paid time off, etcetera GM pays 2.9 people for every 1 person who's actually working for them. Yes, Detroit has made some serious market miscalculations (SUVs instead of fuel efficiency, skipping hybrids for hydrogen, etc.) at the executive level, but I think its plight is due more to the UAW than poor management. The UAW has outlived its utility, it's now hurting the American economy by crippling one of our most important industries.

The UAW does not write their own contracts. In order for them to get paid redulicious amounts of money the management must aprove it. Futhermore, the unions walk all over Boeing just as much as they do Ford/GM, so I am not sure bringging in Mulally is going to help with that issue.

Why doesn't Detroit try breaking the Unions? Run production rates as high as they can for about 6 months to build up inventory right befoer the contract comes up, and then let them strike forever until they meet the company's demands. Cat did this in the 80s. Spirit Aerosystems was also able to get a lot of UAW last summer simply by not backing down.

I'll admit I don't know a lot about union laws, etc, just what I've picked up from working around them. But I do know that an overpaid employee is a sign of poor management.

Check that on Caterpillar. The 90's was the big show down for Cat & the union. Unlike the 80's Cat decided to play it smart. The union walked at Cat emptied it's offices to run production. Quality, & effeciency were at the highest levels in years. This continued for almost 2 years. UAW was broken & realized it was their priviledge, not Cat's.

Cat learned the leasons of global economy & competition in the 90's. American Auto is still trying to figure this one out.