Another Shakeup at Ford

P. A. Schilke

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From my Retiree Newsletter:


Team,


The Ford Motor Company has endured and thrived for 118 years – through every imaginable challenge – because we have the vision to imagine the future and the courage to change.


Today, we are announcing some of the most important changes in our history. I want to share with you here my thoughts about what it all means.


Ford created a product, a business culture and a way of building cars that nobody else had ever imagined. We revolutionized mobility. We democratized transportation.


We redefined the car, the truck and our business again and again – think of the Mustang, the GT, the sport utility vehicle, the hybrid, the embrace of sustainability.


We did those things with combinations of mastery and imagination, craftsmanship and experimentation, engineering and art, discipline and intuition, family stewardship and diversified talent. Over and over, we unlocked possibilities and shaped this industry’s future. We combined elements to create alloys that were even stronger than their parts.


Today we’re doing it again.


We’re transforming Ford around the world for the electric and connected vehicle age. We’ll create truly great products that improve over time, revolutionize the ownership experience and set up Ford not just to compete but to win, against both old and new competitors. We’re bringing our Ford+ plan to life.


The part of our transformation that people will see are two new businesses, Ford Blue and Ford Model e.


Ford Blue will be the home of our most iconic vehicles and the steward of our unmatched capabilities in engineering, testing and building vehicles.


Model e will be where we invent, develop, scale and market breakthrough electric products and digital experiences that people have not yet even imagined.


Such a separation not only makes sense, it is vital for our business. The skills, the cultures, the outlook that make each of those businesses successful are different. Unleashing both teams to focus with single-minded passion on leading what they do best will ensure they both thrive.


But below the surface is the part of the transformation that people will feel and experience. It is the way these two businesses strengthen each other.


As our story unfolds around the world, we will show ourselves to be a Ford that operates with the speed and unconstrained culture of a startup, supported by industrial resources, scale and iconic brands that startups can only dream of.


And you will hear Bill, me and other Ford leaders talk about it – and see us live it – over the days and weeks to come.


But here I want to focus on what it means to you.


First, it means you are part of something extraordinary and historic – a step change for our industry, for its impact on the world around us and in the lives and lifestyles of our customers.


It will mean new opportunities – and new ways of realizing your unique potential in this company. The cultures of Ford Blue and Model e will be their own. And, so, for that matter, will the cultures of Ford Credit, Ford Pro, Ford Drive and Lincoln. Of course, there will be values and behaviors that each of us will be expected to live up to wherever we are in Ford; but Ford+ will be home to cultures where diverse professional styles, personalities and strengths can thrive.


It also will mean new expectations. We will be moving faster. We will be reaching farther. It’s not good enough to beat our traditional competitors; we need to challenge and beat new competitors who lack our history but dare to lay claim to our future. The way we care for each other, the way we commit to excellence, the way we measure our successes, the ways we reward our performance, will all need to align with what it takes reclaim that future.


If that makes you excited about the direction we’re going, that’s a good thing. If it makes you think you might want to limber up and tie on some new running shoes for the path ahead, that’s a good thing, too.


People are counting on us. Our customers are counting on us to meet their changing wants and needs. Our investors are counting on us to create value in exchange for the confidence and capital they invest in us. Our business partners and dealers are counting on us to build a brand and portfolio that will fuel their success. Our communities are counting on us to show up with respect and accountability. And the next generation of the family that is Ford Motor Company is counting on us to hand them a company that continues to reimagine, that continues to create, that continues to shape our industry and to build a better world.


Join us today at 10 a.m. Dearborn time for our Global Town Hall and stay tuned for much more about how this transformation will come to life later today, as well as over the coming weeks; be sure to continue tuning in to the important updates shared during town hall, all- hands meetings and across @FordOnline.


In the meantime, know that it’s the greatest possible honor and privilege for me to be part of this journey. And thank you for all that you do for Ford.





Sincerely, Jim
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JDowns

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Makes sense to separate the business units most notably for tax purposes.

When I picked up my truck, I had a conversation with the manager while they were finalizing paperwork. He had mentioned that it appeared as though Ford was going towards the Tesla model of dealerships. Where they would only keep a few new models on the lot, and start migrating to customer orders for delivery. Be interesting if this comes to fruition or not.
 

dtech

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Mostly thought to be to attract investors to the e side of the biz.
 

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Yep not surprising to separate out the divisions at all but why deny the split so vehemently leading up to the announcement?
 


ControlNode

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I think it would be awesome if Model e followed the Telsa direct sales model. Scamming dealers would be so pissed. I feel the dealers are the weak link in the electric buyer's expectation of easy buying. This could Ford's way to deal with that and not break any of the Ford/Ford Blue dealer agreements.
 

AdamHarris

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I don't believe the dealership experience is as bad as the interweb leads everyone to believe. Its been going for a hundred years. Could there be a better system in the future? sure but it wont happen any time soon.
 
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P. A. Schilke

P. A. Schilke

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As long as your pension is secure. ?
I took a pension buyout so no pension from the company for me.....

Best,
Phil
 

Trigganometry

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This is multi pronged. First and most important is delivery of quality vehicles in a timely manner. Taking orders for a myriad of new products and then months transpire does not make for a happy customer. Especially when quality problems are delivered. Growth is great, managing it in a controlled manner is another story all together, especially when engineers get pigeon holed for cost. Double edged sword here, hope they’re not biting off more than they can chew, especially with the buy American made becoming a returning theme in the grand scheme.
 

SemperVee

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AND just last week they said it was not going to come to fruition. Read that as a stock holder who follows the news daily.
 
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Rp930

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I took a pension buyout so no pension from the company for me.....

Best,
Phil
Nice. I’m still dragging mine out. Hoping the Germans behave.
 

DeathRanger

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Ford+ is a new division of Ford. Farley was saying they are not spinning off Ford+ into it's own company
 
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P. A. Schilke

P. A. Schilke

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I took a pension buyout so no pension from the company for me.....

Best,
Phil
Pension buyout was a mess. The company hired to handle the buyout program put me off to the end due to my divorce from 1st wife complicating things. So the company, Towers Watson, sent me a summary that indicated my 2nd wife got twice as much pension funding if I died! Supposed to be 90% not 2x..... Margie was contemplating my grave accident.... So tossed this back at Towers Watson...they drug out the whole review process and then discovered the mistake and tossed another $100,000 at me....So I said I would have to bounce this off my Financial Advisor, who said....Holy $hit...Phil...take the money and run....

So if Ford sinks or swims...only thing I might loose is the employee new vehicle purchase plan... And employee discount programs like Dell computers etc...

best,
Phil
 

IdahoRanger

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Pension buyout was a mess. The company hired to handle the buyout program put me off to the end due to my divorce from 1st wife complicating things. So the company, Towers Watson, sent me a summary that indicated my 2nd wife got twice as much pension funding if I died! Supposed to be 90% not 2x..... Margie was contemplating my grave accident.... So tossed this back at Towers Watson...they drug out the whole review process and then discovered the mistake and tossed another $100,000 at me....So I said I would have to bounce this off my Financial Advisor, who said....Holy $hit...Phil...take the money and run....

So if Ford sinks or swims...only thing I might loose is the employee new vehicle purchase plan... And employee discount programs like Dell computers etc...

best,
Phil
Yes, a mess for sure. My wife and her brother have been dealing with them and their HSA VIA Benefits to get their aunts estate settled. NESC has been a pain too as they have been trying to get info on her SSIP.
 

wanted33

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Makes sense to separate the business units most notably for tax purposes.

When I picked up my truck, I had a conversation with the manager while they were finalizing paperwork. He had mentioned that it appeared as though Ford was going towards the Tesla model of dealerships. Where they would only keep a few new models on the lot, and start migrating to customer orders for delivery. Be interesting if this comes to fruition or not.
This is an area where something really needs to be done. The horror stories told by folks that went to pick up their Broncos only to have a stupid high ADM added to the sticker would curl your hair. A member over on the B6g froum just went to his dealer (Golf Mill Ford in Illnois) to pick up his Bronco. Even though he had a signed price agreement the dealer still added a 5K ADM saying that is the way others are selling Broncos. In the end they refused to sell him his Bronco. Other have gone in to find their Broncos price have risen up to 100% of the MSRP. Of course Ford will tell you there is nothing they can do about this while giving you lip service that they will dicipline these dealers by withholding allocations. That hasn't happened yet. These dealers along with Ford is killing Fords reputation. Something certainly needs to change, and quickly.

Being a Bronco reservation holder I could go on, and on about how bad Ford has screwed up the Bronco launch. And, it didn't have to be that way. Here's a good example of a shitty Ford dealer.

https://www.bronco6g.com/forum/thre...re-only-to-be-greeted-with-a-48-markup.38193/
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