A strong Letter from a Ford Dealer Principle in America

A strong Letter from a Ford Dealer Principle in America

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rgracin

Original Poster:

601 posts

212 months

Friday 5th December 2008
quotequote all
My cousin in the US sent this to me last night makes for interesting reading:

This is a letter that came off the Ford Dealer network about the Auto Company Loans from the Govt.



--- On Thu, 12/4/08, Randy Fuller <
From: Randy Fuller <
Subject: [Selectdealer] Great Letter
To:
Date: Thursday, December 4, 2008, 1:14 PM


This just came in from John Bowser. It's a great commentary on the state of
the market and congress.

Sent: Thursday, December 04, 2008 7:43 AM
Subject: FW: Intermountain Letter to the Editor- Elkins Fordland

Editor:
As I watch the coverage of the fate of the U.S. auto industry, one alarming
and frustrating fact hits me right between the eyes. The fate of our
nation's economic survival is in the hands of some congressmen who are
completely out of touch and act without knowledge of an industry that
affects almost every person in our nation. The same lack of knowledge is
shared with many journalists whom are irresponsible when influencing the
opinion of millions of viewers.

Sen. Richard Shelby of Alabama has doomed the industry, calling it a
dinosaur. No Mr. Shelby, you are the dinosaur, with ideas stuck in the '70s,
'80s and '90s. You and the uninformed journalist and senators that hold onto
myths that are not relevant in today's world.

When you say that the Big Three build vehicles nobody wants to buy, you must
have overlooked that GM outsold Toyota by about 1.2 million vehicles in the
U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in the U.S.
GM was the world's No. 1 automaker beating Toyota by 3,000 units.

When you claim inferior quality comes from the Big Three, did you realize
that Chevy makes the Malibu and Ford makes the Fusion that were both rated
over the Camry and Accord by J.D. Power independent survey on initial
quality? Did you bother to read the Consumer Report that rated Ford on par
with good Japanese automakers.

Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that
beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg
is the best midsize, beating the Camry Hybrid. Ford's Focus beats the
Corolla and Chevy's Cobalt beats the Civic.

When you ask how many times are we going to bail them out you must be
referring to 1980. The only Big Three bailout was Chrysler, who paid back $1
billion, plus interest. GM and Ford have never received government aid.

When you criticize the Big Three for building so many pickups, surely you've
noticed the attempts Toyota and Nissan have made spending billions to try to
get a piece of that pie. Perhaps it bothers you that for 31 straight years
Ford's F-Series has been the best selling vehicle. Ford and GM have
dominated this market and when you see the new '09 F-150 you'll agree this
won't change soon.

Did you realize that both GM and Ford offer more hybrid models than Nissan
or Honda. Between 2005 and 2007, Ford alone has invested more than $22
billion in research and development of technologies such as Eco Boost, flex
fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars.

It's 2008 and the quality of the vehicles coming out of Detroit are once
again the best in the world.
Perhaps Sen. Shelby isn't really that blind. Maybe he realizes the quality
shift to American. Maybe it's the fact that his state of Alabama has given
so much to land factories from Honda, Hyundai and Mercedes Benz that he is
more concerned about their continued growth than he is about the people of
our country. Sen. Shelby's disdain for "government subsidies" is very
hypocritical. In the early '90s he was the driving force behind a $253
million incentive package to Mercedes. Plus, Alabama agreed to purchase
2,500 vehicles from Mercedes. While the bridge loan the Big Three is
requesting will be paid back, Alabama's $180,000-plus per job was pure
incentive. Sen. Shelby, not only are you out of touch, you are a
self-serving hypocrite, who is prepared to ruin our nation because of lack
of knowledge and lack of due diligence in making your opinions and
decisions.

After 9/11, the Detroit Three and Harley Davidson gave $40 million-plus
emergency vehicles to the recovery efforts. What was given to the 9/11
relief effort by the Asian and European Auto Manufactures? $0 Nada. Zip!

We live in a world of free trade, world economy and we have not been able to
produce products as cost efficiently. While the governments of other auto
producing nations subsidize their automakers, our government may be ready to
force its demise. While our automakers have paid union wages, benefits and
legacy debt, our Asian competitors employ cheap labor. We are at an extreme
disadvantage in production cost. Although many UAW concessions begin in
2010, many lawmakers think it's not enough.

Some point the blame to corporate management. I would like to speak of Ford
Motor Co. The company has streamlined by reducing our workforce by 51,000
since 2005, closing 17 plants and cutting expenses. Product and future
product is excellent and the company is focused on one Ford. This is a
company poised for success. Ford product quality and corporate management
have improved light years since the nightmare of Jacques Nasser. Thank you
Alan Mulally and the best auto company management team in the business.

The financial collapse caused by the secondary mortgage fiasco and the greed
of Wall Street has led to a $700 billion bailout of the industry that
created the problem. AIG spent nearly $1 million on three company excursions
to lavish resorts and hunting destinations. Paulson is saying no to $250
billion foreclosure relief and the whole thing is a mess. So when the Big
Three ask for 4 percent of that of the $700 billion, $25 billion to save the
country's largest industry, there is obviously oppositions. But does it make
sense to reward the culprits of the problem with $700 billion
unconditionally, and ignore the victims?

As a Ford dealer, I feel our portion of the $25 billion will never be
touched and is not necessary. Ford currently has $29 billion of liquidity.
However, the effect of a bankruptcy by GM will hurt the suppliers we all do
business with. A Chapter 11 bankruptcy by any manufacture would cost
retirees their health care and retirements. Chances are GM would recover
from Chapter 11 with a better business plan with much less expense. So who
foots the bill if GM or all three go Chapter 11? All that extra health care,
unemployment, loss of tax base and some forgiven debt goes back to the
taxpayer, us. With no chance of repayment, this would be much worse than a
loan with the intent of repayment.

So while it is debatable whether a loan or Chapter 11 is better for the Big
Three, a $25 billion loan is definitely better for the taxpayers and the
economy of our country.

So I'll end where I began on the quality of the products of Detroit. Before
you, Mr. or Ms. Journalist continue to misinform the American public and
turn them against one of the great industries that helped build this nation,
I must ask you one question. Before you, Mr. or Madam Congressman vote to
end health care and retirement benefits for 1 million retirees, eliminate
2.5 million of our nation's jobs, lose the technology that will lead us in
the future and create an economic disaster including hundreds of billions of
tax dollars lost, I ask this question not in the rhetorical sense. I ask it
in the sincere, literal way. Can you tell me, have you driven a Ford lately?

Jim Jackson
Elkins




Edited by rgracin on Friday 5th December 09:20

crofty1984

15,858 posts

204 months

Friday 5th December 2008
quotequote all
Might want to cover up the guys details.

bean455

674 posts

208 months

Friday 5th December 2008
quotequote all
Well said that man.

rgracin

Original Poster:

601 posts

212 months

Friday 5th December 2008
quotequote all
Dooshbag said:
Not nice for those who will lose their jobs, but throwing more taxpayers money at an Industry that has been financially failing for many years is a one-way street to Communism. wink
He states in one part of the letter how wonderful they are for employing all these thousands of people, and then goes on to say how wonderful they are for streamlining and shedding so many thousands of jobs!!

G_T

16,160 posts

190 months

Friday 5th December 2008
quotequote all
Whilst I would admit the statement lacks consistency, and I think he should reference his facts more carefully, he certainly has several valid points and it's a shame no-one of any influence will give a damn what he has to say. It must be incredibly frustrating for the gentleman and it's obviously written from the heart.

Also if you don't take the time to read it. Perhaps you shouldn't make half baked comments? Or at least don't admit it. It makes you sound like a moron.

Best of luck to all of them. It's tragic that worldwide we finally have to rely on the shower of morons that we've unwittingly elected for leadership and they're not even able to convince laymen that they're doing something about it.

Edited by G_T on Friday 5th December 09:51

Mr Gear

9,416 posts

190 months

Friday 5th December 2008
quotequote all
Los Angeles said:
rgracin said:
Editor: As I watch the coverage of the fate of the U.S. auto industry, one alarming and frustrating fact hits me right between the eyes.
He omitted, "But the truth evades me."

Detroit has been on a downward slide for over two decades, well documented, warned often enough by experts, industry figures, and commentators, told to alter production methods, model policy, and work practices. But they were making vast profits on SUV's and pick-ups which sustained the weaker sales; so, why bother to improve other vehicle brands if they are selling briskly, or meet the competition head-on? Stick any GM truck on a ramp and you'll see a chassis unaltered from the seventies. Executives spent billions of dollars lobbying US government to delay or stop progress and change. One example: Honda invented an engine that cleaned itself, no cat needed. But GM and Ford, invested in US cat companies, successfully got Honda's solution banned. The industry has gone through a dozen heart attacks, some fatal yet trumpeted as the saviour of the industry, and here we are, arrived at the inevitable destination, pushed by banks no longer willing and able to fund massive cash-flow gaps. And still Ford, GM, and Chrysler laughed at the Japanese and Europeans. Some German companies copied Japanese methods of production and prospered, Porsche especially so, the Americans didn't think change necessary. It's a mirror image of the British auto collapse of the seventies and eighties. And back then, British Leyland went cap in hand to government for bailouts, again, and again, and again ... then Rover, again, and again, and ...

Meanwhile, Detroit gave us pastiche versions of sixties icons ... while promising new technologies, but those are few and came too late. Only Ford showed any real imagination in technological advance sadly bedevilled by a lack of brand image.

No one wants to see a single man or woman lose their livelihood, but Detroit has no right in blaming its failings on government. All that has changed in their circumstances is bank loans have ceased to be available.

LA
^ Wot he said. They should be told to stick it. The good bits of the companies will be bought and developed by people with money and vision, and the rotten bits will be forgotten about.

mblade123

533 posts

192 months

Friday 5th December 2008
quotequote all
What a load of self serving rubbish.

First off I have to say I have every sympathy with the workforce who may be out of work. I dare say they work hard and have pride in what they produce. But the senior management need to remove there heads from the 1970s and realise there is a great big wide world beyond the boundries of the USA.

America may lay claim to the production line and the model T but Europe and the rest of the world have refined and improved things beyond their colective thinking.

He states that the Ford F series is the best selling. Well of course it is. Thats about all Ford produce in the US in the big 4x4 range. How many do you see roaming the streets of the UK or Europe for that matter? Not many and thats mainly due to the fact that they are uneconomical dinosaurs.

Whilst they have petrol at pennys a ltr people will buy them but as soon as the price goes up?

The attitude with the US car manufacturers is you get what we give you and not what you want.
I was there just recently and it was a big advertising thing when some average saloon car or other was getting 30mpg.
For pitys sake I can get that from my M3 on a run on the motorway.

And as for this statement

[i]Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that
beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg
is the best midsize, beating the Camry Hybrid. Ford's Focus beats the
Corolla and Chevy's Cobalt beats the Civic[/i]

What a load of rubbish. A Hybrid Fusion that does 39mpg. Oooooh wow. How much did that take to develop??? My wifes bog standard Golf TDI gets 40 odd mpg with everyday use. Take it on a run and its close to 50mpg

As for the Malibu I dont think I have ever been in a less souless piece of junk in my life so to say it beats the Accord just beggers belife.

Ill not go into American import restrictions on other cars as that makes my blood boil as well.

A free market economy??? My arse.

Wake up and smell the coffee as is said over the pond. Make things that other people want.
Its not hard to have performance and economy

welshbikerduck

1,448 posts

189 months

Friday 5th December 2008
quotequote all
Anyone have the readers digest version of it, far too long to read for me.

russ_a

4,578 posts

211 months

Friday 5th December 2008
quotequote all
Exec Summary;

Some Fords are better than Honda, but some are not, but I won't mention that here.
GM sell more cars than Toyota in USA, but I won't mention the fact that most goverment agencies have to buy Made in USA.
People are not buying new cars due to money worries, so car workers being made redundant.
Goverment have helped banks so should help car industry
Goverment chap says USA Car Industry still stuck in '70s


Mr POD

5,153 posts

192 months

Friday 5th December 2008
quotequote all
bean455 said:
Well said that man.
agree, but a bit complacent all the same.

G_T

16,160 posts

190 months

Friday 5th December 2008
quotequote all
Dooshbag said:
G_T said:
Also if you don't take the time to read it. Perhaps you shouldn't make half baked comments? Or at least don't admit it. It makes you sound like a moron.
Half baked comments ? Lightly grilled Sir. I've now read the rest, still have little sympathy, it is difficult to take it so seriously with one-eyed rhetoric like this :

"...eliminate 2.5 million of our nation's jobs, lose the technology that will lead us in
the future and create an economic disaster..."

I repeat - It is a free market economy, you vote for your politicians and you should take responsibility for your company and its actions. Its a shame that some will lose their jobs though.
Lol, true.

ZZR

913 posts

251 months

Friday 5th December 2008
quotequote all
When talking about fuel economy, remember american gallons are smaller than ours! times theirs by 1.2 and the way they assess the economy may also be different.

Dr JonboyG

2,561 posts

239 months

Friday 5th December 2008
quotequote all
mblade123 said:
Whilst they have petrol at pennys a ltr people will buy them but as soon as the price goes up?

The attitude with the US car manufacturers is you get what we give you and not what you want.
I was there just recently and it was a big advertising thing when some average saloon car or other was getting 30mpg.
For pitys sake I can get that from my M3 on a run on the motorway.

And as for this statement

[i]Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that
beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg
is the best midsize, beating the Camry Hybrid. Ford's Focus beats the
Corolla and Chevy's Cobalt beats the Civic[/i]

What a load of rubbish. A Hybrid Fusion that does 39mpg. Oooooh wow. How much did that take to develop??? My wifes bog standard Golf TDI gets 40 odd mpg with everyday use. Take it on a run and its close to 50mpg
Your argument would be a lot more compelling if you realised that a US gallon is only about 80% of a UK gallon, and that 30 MPG in the US is about 37 mpg Imperial.

LukeBird

17,170 posts

209 months

Friday 5th December 2008
quotequote all
mblade123 said:
What a load of self serving rubbish.
+1
Arguing that GM was the biggest car maker in the world, because of 3000 units, laughable!
It is their inferior products that have caused the problems, just because they still sell well in the US of A, is no argument!
You can't help but think it's bad management and the unions that are destroying the great American auto industry.
Any union that is willing to take down the company (which it certainly looks like they will) thta represents their staff doesn't deserve to live IMO. And it's a reason why I won't be part of the union that represents my job... rolleyes

mblade123

533 posts

192 months

Friday 5th December 2008
quotequote all
Dr JonboyG said:
mblade123 said:
Whilst they have petrol at pennys a ltr people will buy them but as soon as the price goes up?

The attitude with the US car manufacturers is you get what we give you and not what you want.
I was there just recently and it was a big advertising thing when some average saloon car or other was getting 30mpg.
For pitys sake I can get that from my M3 on a run on the motorway.

And as for this statement

[i]Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that
beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg
is the best midsize, beating the Camry Hybrid. Ford's Focus beats the
Corolla and Chevy's Cobalt beats the Civic[/i]

What a load of rubbish. A Hybrid Fusion that does 39mpg. Oooooh wow. How much did that take to develop??? My wifes bog standard Golf TDI gets 40 odd mpg with everyday use. Take it on a run and its close to 50mpg
Your argument would be a lot more compelling if you realised that a US gallon is only about 80% of a UK gallon, and that 30 MPG in the US is about 37 mpg Imperial.
Thank you for pointing out the fact that the American gallon is smaller. I was aware of it but in my frustration at reading the rubbish in the OPs letter neglected to mention it.
Having said that, it still dosn`t excuse the fact that American car makers can`t, sorry, won`t produce an economical product with great performance.

GreigM

6,728 posts

249 months

Friday 5th December 2008
quotequote all
To me this letter alone is good proof why the US auto industry SHOULD be left to flounder and die - such a US-centric view is the poison that is killing the industry - absolutely no vision which includes the global perspective that the japanese,german and other industries take. All he talks about is models which are pretty much exclusive to the US-market - Fusion and the F150 (in most forms, although some are exported) - get out and travel round the planet - see the models being driven elsewhere and then come back with your eyes opened about what it takes to be a true global competitor.

anonymous-user

54 months

Friday 5th December 2008
quotequote all
GreigM said:
To me this letter alone is good proof why the US auto industry SHOULD be left to flounder and die - such a US-centric view is the poison that is killing the industry - absolutely no vision which includes the global perspective that the japanese,german and other industries take.
Can't help wondering whether you actually read all of the letter.

Please don't forget that most "Japanese" cars sold in USA are completely different from what's sold in Europe. The market is (a) enormous and (b) fundamentally different.

Please also don't forget that BMW were building all of their X5 and Z4 in USA for worldwide sale.

This thread provides a fantastic opportunity for the British motor industry experts to outline how MG, Rover, Triumph, Austin, Riley, TVR, Morris, Wolseley, Hillman, Marcos, Talbot, Noble and others have managed to keep developing new models and growing their sales while Ford and GM have struggled.....

Mr Gear

9,416 posts

190 months

Friday 5th December 2008
quotequote all
LukeBird said:
+1
Arguing that GM was the biggest car maker in the world, because of 3000 units, laughable!
I think arguing that GM is the biggest automaker because of GM is laughable. If it wasn't for Vauxhall, Opel, Holden and all the independently developed non-USA products etc, it certainly wouldn't be the biggest automaker.

Deva Link

26,934 posts

245 months

Friday 5th December 2008
quotequote all
GreigM said:
To me this letter alone is good proof why the US auto industry SHOULD be left to flounder and die - such a US-centric view is the poison that is killing the industry - absolutely no vision which includes the global perspective that the japanese,german and other industries take. All he talks about is models which are pretty much exclusive to the US-market - Fusion and the F150 (in most forms, although some are exported) - get out and travel round the planet - see the models being driven elsewhere and then come back with your eyes opened about what it takes to be a true global competitor.
err...they're talking about the US auto industry, in the US - what does it matter what goes on elsewhere?

Zod

35,295 posts

258 months

Friday 5th December 2008
quotequote all
He's wrong about the products of the US car industry. Most of them are crap and the reason they have been selling is the absurd financing deals that were offered and that have crippled the industry.