Ford CEO admits 'the customer has spoken' amid company's worst performance slip since 2008 financial crisis: 'It's a big miss'

[AzScorpion]

Longevity is part of the problem for the manufacturers. If you build something, like the cars mentioned, that run 300,000 miles, people don’t buy as many as something that dies at 100,000.
My friend has a riding mower that is a 1995 model with a Briggs & Stratton 11 horsepower engine that still runs like a top and doesn’t even use oil but the frame and drive line are starting to go finally. I was telling my brother about it, who was in appliance sales for many years, and he said the frame people got with the engine people and said don‘t build your engines so good, they need to wear out with the rest of the mower. Sounds about right to me. He had one of the basic five speed Taurus models that he put well over 200,000 miles on and gave it to someone who is still driving it. It was a good little car.

This is their new thing. Build them to last just until the warranty is out and they'll make more money on repairs. Quality and customer service everywhere has gone out the window and now it's all about appeasing the share holders and giving CEOs huge compensation packages. I'm all for a Capitalist market but lets be fair when you're loosing BILLIONS of dollars shouldn't these incentives be taken away

Back to the regulations. It's funny that the Big 3 dove in head first with this yet others like Toyota, Honda and Hyundai didn't. They did a slow transition which ultimately saved their butt because they were smart enough to know that hybrids are the way to go (for now) and regulations change as fast as they're introduced. I haven't read anywhere they they've lost billions on these same regulations.

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[woodworker]

This is their new thing. Build them to last just until the warranty is out and they'll make more money on repairs. Quality and customer service everywhere has gone out the window and now it's all about appeasing the share holders and giving CEOs huge compensation packages. I'm all for a Capitalist market but lets be fair when you're loosing BILLIONS of dollars shouldn't these incentives be taken away

Back to the regulations. It's funny that the Big 3 dove in head first with this yet others like Toyota, Honda and Hyundai didn't. They did a slow transition which ultimately saved their butt because they were smart enough to know that hybrids are the way to go (for now) and regulations change as fast as they're introduced. I haven't read anywhere they they've lost billions on these same regulations.

You took the words right out of my fingers, AGREE 100%……

 

[dtech]

Ford CEO Jim Farley received a total compensation package of $24.9 million for 2024, marking a 6.1% decrease from 2023 due to missed performance targets. His 2024 package included a $1.7 million base salary, $20.6 million in stock awards, and other compensation, with his pay being 253 times the median Ford employee's $98,273 salary.

Let's see by my reckoning if he patted the Lightning just 24 times that would work to a cool $1m and change per pat, not bad for being the front man for Ford. Look at that euphoric smile, telling Ford workers and the public how easy and fun it can be being a CEO as he smugly drives off in his Chineses Xiaomi SU7 EV which Ford likely paid for, life is indeed a bowl of cherries.

 

[dtech]

Exactly, it’s all about one word, CONTROL…,!!

Just to add a visual as wealth = control. And this is 2024 data from the Fed, and the inexorable march of income inequity is only increasing.

And for understanding the timeline I like this visualization, those guys make Farley look relatively like a small insect, at $24m annually maybe a mosquito ?

 

[woodworker]

Just to add a visual as wealth = control. And this is 2024 data from the Fed, and the inexorable march of income inequity is only increasing.

And for understanding the timeline I like this visualization, those guys make Farley look relatively like a small insect, at $24m annually maybe a mosquito ?

It just burns my ass to see the money some of these people are making. I’ll leave it at that.

 

[AzScorpion]

It just burns my ass to see the money some of these people are making. I’ll leave it at that.

This is one area where I'll have to disagree with you.

If we start regulating what someone (or a company) can make we're going to be a socialist country. While their worth is astounding it was all done legally and all of them benefiting from al the legal tax loopholes. That's like saying you're not going to take all your legal deductions on your own tax returns because it's not fair to someone who's poor and doesn't receive the same. When I was in business I wrote off everything I could from my trucks (which was everything I bought for them like some killer stereos &wheels), cloths, all my stationary and envelopes and even a few nice big screen tvs over the years. They were in my office and I used them as my computer monitor.

Take Elon for instance. When he owned SolarCity he made a ton of money off the government subsidies because most of SCs customers were leasing their systems. When you lease your system the installer gets the rebates not the customer so all those tens of thousands of homes they did he was getting all the rebates which is brilliant and well deserved. Heck just my small 14 panel array qualified for $6,000 Federal and $1,000 State subsidies which I was able to take 100% right off my income in 2016. I was still working then and being self employed it allowed me to skip a few quarterly payments. Now multiply that by the amount they did and you can see where a good chunk of money was made besides the installs and the materials.

Don't hate the player, hate the game. Hint, it's rigged against all us little guys.

 

[RedlandRanger]

Don't hate the player, hate the game. Hint, it's rigged against all us little guys.

The problem is the "players" rig the game in their favor...... THAT is the real problem.

 

[AzScorpion]

The problem is the "players" rig the game in their favor...... THAT is the real problem.

Of course they do. Why does every politician (who's only making $175K/yr) have a net worth in the tens of millions within a few years? Then they're in there for life and the pile of gets kicked to the next ones.

 

[TJC]

Longevity is part of the problem for the manufacturers. If you build something, like the cars mentioned, that run 300,000 miles, people don’t buy as many as something that dies at 100,000.
My friend has a riding mower that is a 1995 model with a Briggs & Stratton 11 horsepower engine that still runs like a top and doesn’t even use oil but the frame and drive line are starting to go finally. I was telling my brother about it, who was in appliance sales for many years, and he said the frame people got with the engine people and said don‘t build your engines so good, they need to wear out with the rest of the mower. Sounds about right to me. He had one of the basic five speed Taurus models that he put well over 200,000 miles on and gave it to someone who is still driving it. It was a good little car.

My 1978 Wheel Horse 12 hp Kohler, 6 speed manual cast iron transaxle with high quality gears is still running strong. It will climb a tree! I drove it off a 5' retaining wall several years ago - lucky it didn't kill me. Once I recovered, I straightened out the hood and started it right up. It's got a Johnny bucket front loader on it, and an optional 4' steel blade for clearing the driveway when it snows. 48 Years old! Starts like it was new and doesn't burn a drop of oil. I did go through the transmission and installed new bearings and seals. Off the shelf bearings. Not bad for ~50 years of service. Still have a 48" mowing deck for it too.

 

[AzScorpion]

My 1978 Wheel Horse 12 hp Kohler, 6 speed manual cast iron transaxle with high quality gears is still running strong. It will climb a tree! I drove it off a 5' retaining wall several years ago - lucky it didn't kill me. Once I recovered, I straightened out the hood and started it right up. It's got a Johnny bucket front loader on it, and an optional 4' steel blade for clearing the driveway when it snows. 48 Years old! Starts like it was new and doesn't burn a drop of oil. I did go through the transmission and installed new bearings and seals. Off the shelf bearings. Not bad for ~50 years of service. Still have a 48" mowing deck for it too.

Those things are pretty much indestructible! My buddy has a few of them and restores them when he has time. He still uses one for around his house and it's outlasted almost every other one of our friends conventional mowers over the past 30+ years.

 

[dtech]

This is their new thing. Build them to last just until the warranty is out and they'll make more money on repairs. Quality and customer service everywhere has gone out the window and now it's all about appeasing the share holders and giving CEOs huge compensation packages. I'm all for a Capitalist market but lets be fair when you're loosing BILLIONS of dollars shouldn't these incentives be taken away

Back to the regulations. It's funny that the Big 3 dove in head first with this yet others like Toyota, Honda and Hyundai didn't. They did a slow transition which ultimately saved their butt because they were smart enough to know that hybrids are the way to go (for now) and regulations change as fast as they're introduced. I haven't read anywhere they they've lost billions on these same regulations.

Hyundai's EV biz is profitable and from a global perspective 25% of their sales are EVs, so they are invested in ICE, Hybrids and EVs , both Hyundai and KIA are very vertically structured, making most of what goes into their vehicles, including steel.

 

[TJC]

It just burns my ass to see the money some of these people are making. I’ll leave it at that.

It is no different than the robber barons of the 19th century. Credit JD Rockerfeller for BIg Pharma, the AMA, and seizing control of all the medical schools. Then eliminating organic medicines. Turned it into Big Business. They have no incentive to cure anyone, they want to manage your health issues, not cure you. Efficiently squeeze the $$ out of you until you die.

 

[TJC]

Those things are pretty much indestructible! My buddy has a few of them and restores them when he has time. He still uses one for around his house and it's outlasted almost every other one of our friends conventional mowers over the past 30+ years.

The energizer bunny!

 

[dtech]

as the middle class has shrunk significantly over the decades more and more wealth has been transferred to those who are already well heeled.

 

[Dr_Strangelove]

The dealership markups aren't doing them any favors either. I know my local Las Vegas dealerships will make fast work of those "Below $40k" vehicles.

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