New Freelander 2
Discussion
I can't see that anyone else has posted about this yet, so here goes.
I was over on Merseyside this week. The new Land Rover Freelander 2 is being made at Halewood. This is the first Land Rover to be wholly designed and built by Ford.
The launch party and dinner were very good.
The new head of Ford is a Boeing aircraft ex.
He was on a video link. Rather than give the assembled guests a feeling of warmth and well-being, he was in fighting mood.
He said Ford lost £3 Billion, in the last qurter alone. Yes, £3,000,000,000 in 3 months. That's £35 million every day.
He's offered every Ford worker the chance of redundancy. He said he wants to close 17 plants, mainly across the USA. He says Aston-Martin is up for sale and no part of Ford is safe.
He commented on Jaguar and Volvo, saying that return on capital was abysmal. They'd have been better leaving their money in the bank.
Last time I attended such a depressing first-day manufacture was at Rover, when BMW slated the 75, even before the first car hit the showroom floor.
I hope the scousers do a proper job. If not, there'll be no messing from Ford this time.
I was over on Merseyside this week. The new Land Rover Freelander 2 is being made at Halewood. This is the first Land Rover to be wholly designed and built by Ford.
The launch party and dinner were very good.
The new head of Ford is a Boeing aircraft ex.
He was on a video link. Rather than give the assembled guests a feeling of warmth and well-being, he was in fighting mood.
He said Ford lost £3 Billion, in the last qurter alone. Yes, £3,000,000,000 in 3 months. That's £35 million every day.
He's offered every Ford worker the chance of redundancy. He said he wants to close 17 plants, mainly across the USA. He says Aston-Martin is up for sale and no part of Ford is safe.
He commented on Jaguar and Volvo, saying that return on capital was abysmal. They'd have been better leaving their money in the bank.
Last time I attended such a depressing first-day manufacture was at Rover, when BMW slated the 75, even before the first car hit the showroom floor.
I hope the scousers do a proper job. If not, there'll be no messing from Ford this time.
The problem is that they're losing so much money they're taking critical action, so Mr. ex-Boeing said.
Selling off the family silver would generate desperately needed revenue.
They got it so wrong in America. All the development was for SUVs which buyers don't seem to want.
The business model isn't strong, either.
An example was Aston and Jag. Both built in the UK, yet mainly sold in the US. The dollar exchange rate is punitive. The right place to make is in Korea or China or India, but no real Ford capacity there yet.
He won't build new plants there as Ford already has far too much manufacturing capacity, in all the wrong places.
Selling off the family silver would generate desperately needed revenue.
They got it so wrong in America. All the development was for SUVs which buyers don't seem to want.
The business model isn't strong, either.
An example was Aston and Jag. Both built in the UK, yet mainly sold in the US. The dollar exchange rate is punitive. The right place to make is in Korea or China or India, but no real Ford capacity there yet.
He won't build new plants there as Ford already has far too much manufacturing capacity, in all the wrong places.
What were you doing there, sean, you work for VW Audi?
I dont know how a company sets about throwing away 3bn in a quarter. If I was trying my hardest I couldn't do it and i bet that I could have a major impact on the construction, property and high end car retail business in the UK in the attempt.
You see a
of a lot of Jaguars about in germany and UK, I would say as many as you could reasonably expect to see. They are great cars. You see a lot of Astons, relative of course to their price. Land Rover are the unchallenged leader in their class. Ford are, you have to say, pretty good, and anyone who isnt tempted by a Focus RS isnt human.
So what exactly are they spending the money on? Where is it going? There is something very wrong somewhere, possibly at headquarters, very likely in the US. And I cant see that selling off some of the best and most iconic brands in the world is in any way sensible.
Then again, if the Americans cant run a country ( Iraq ) then its a fair bet that they are going to struggle with a car company.
I dont know how a company sets about throwing away 3bn in a quarter. If I was trying my hardest I couldn't do it and i bet that I could have a major impact on the construction, property and high end car retail business in the UK in the attempt.
You see a
of a lot of Jaguars about in germany and UK, I would say as many as you could reasonably expect to see. They are great cars. You see a lot of Astons, relative of course to their price. Land Rover are the unchallenged leader in their class. Ford are, you have to say, pretty good, and anyone who isnt tempted by a Focus RS isnt human. So what exactly are they spending the money on? Where is it going? There is something very wrong somewhere, possibly at headquarters, very likely in the US. And I cant see that selling off some of the best and most iconic brands in the world is in any way sensible.
Then again, if the Americans cant run a country ( Iraq ) then its a fair bet that they are going to struggle with a car company.
The motor industry is very incestuous.
VAG has joint ventures with many players, including Ford.
Look at the Sharan / Galaxy / Alhambra.
My diesel engines, much body input from Ford and built in a jointly-financed new plant in Portugal.
You also see much commonality with tooling / presses / software these days.
We intend to stay ahead through partnership and co-operation.
Ford admits to several strategic errors.
There were big losses with the Bridgestone-Firestone tyre problems.
The business model is wrong, as I wrote previously.
Difficult to recover, short-term.
VAG has joint ventures with many players, including Ford.
Look at the Sharan / Galaxy / Alhambra.
My diesel engines, much body input from Ford and built in a jointly-financed new plant in Portugal.
You also see much commonality with tooling / presses / software these days.
We intend to stay ahead through partnership and co-operation.
Ford admits to several strategic errors.
There were big losses with the Bridgestone-Firestone tyre problems.
The business model is wrong, as I wrote previously.
Difficult to recover, short-term.
Edited by sean5302 on Sunday 5th November 21:34
cardigankid said:
I dont know how a company sets about throwing away 3bn in a quarter. If I was trying my hardest I couldn't do it and i bet that I could have a major impact on the construction, property and high end car retail business in the UK in the attempt.
Ford's US sales are collapsing. Thats how you lose that amount of money so quickly.
I think what has caught Ford off guard is the speed at which their sales are vapourising.
Absolutely correct.
They know.
Why else would you sell off the family silver?
By this, I mean, look at your house. Would you sell your tv, your fridge, your washing machine?
Only if you were so desperate that you'd lose the whole house.
Very clever, bright, understanding. Very well done, my friend.
They know.
Why else would you sell off the family silver?
By this, I mean, look at your house. Would you sell your tv, your fridge, your washing machine?
Only if you were so desperate that you'd lose the whole house.
Very clever, bright, understanding. Very well done, my friend.
sean5302 said:
The problem is that they're losing so much money they're taking critical action, so Mr. ex-Boeing said.
Selling off the family silver would generate desperately needed revenue.
They got it so wrong in America. All the development was for SUVs which buyers don't seem to want.
The business model isn't strong, either.
An example was Aston and Jag. Both built in the UK, yet mainly sold in the US. The dollar exchange rate is punitive. The right place to make is in Korea or China or India, but no real Ford capacity there yet.
He won't build new plants there as Ford already has far too much manufacturing capacity, in all the wrong places.
Selling off the family silver would generate desperately needed revenue.
They got it so wrong in America. All the development was for SUVs which buyers don't seem to want.
The business model isn't strong, either.
An example was Aston and Jag. Both built in the UK, yet mainly sold in the US. The dollar exchange rate is punitive. The right place to make is in Korea or China or India, but no real Ford capacity there yet.
He won't build new plants there as Ford already has far too much manufacturing capacity, in all the wrong places.
The average wage in the UK motor industry, just for guys on the assembly track is £700 per week.
The average wage in the Czech Republic, for similar work, is £54 per week.
In Korea, it's £38 per week.
In China and India it's £33 per week.
It's not easy in the UK. The car workers here pay £2000 per year council tax, for example.
You don't have to pay that in India.
If you were a multi-national car company, able to build a plant anywhere, just where would you locate it?
The average wage in the Czech Republic, for similar work, is £54 per week.
In Korea, it's £38 per week.
In China and India it's £33 per week.
It's not easy in the UK. The car workers here pay £2000 per year council tax, for example.
You don't have to pay that in India.
If you were a multi-national car company, able to build a plant anywhere, just where would you locate it?
cardigankid said:
Alright then, why are Ford's US sales vapourizing? Sorry if that is a naive question.
From what i've read and seen, they are not building models customers want and because petrol prices have gone from under $1 a gallon in 2003 to a peak of something like $3.50 this year. (They are back under $2.50 at the moment i think). Customers who are replacing their cars this year are taking fuel consumption more seriously and as Ford have concentrated on fairly uneconomical vehicles (SUVs etc) - they are losing out fairly fast.
sean5302 said:
The average wage in the UK motor industry, just for guys on the assembly track is £700 per week.
The average wage in the Czech Republic, for similar work, is £54 per week.
In Korea, it's £38 per week.
In China and India it's £33 per week.
It's not easy in the UK. The car workers here pay £2000 per year council tax, for example.
You don't have to pay that in India.
If you were a multi-national car company, able to build a plant anywhere, just where would you locate it?
The average wage in the Czech Republic, for similar work, is £54 per week.
In Korea, it's £38 per week.
In China and India it's £33 per week.
It's not easy in the UK. The car workers here pay £2000 per year council tax, for example.
You don't have to pay that in India.
If you were a multi-national car company, able to build a plant anywhere, just where would you locate it?
Your figures are totally out. I can assure you that a car worker in
Czech earns far more than £58pw, I have a friend who works as an adviser to the deputy Finanace Minister! And in South Korea car workers are actually pretty well paid and earn considerably more than £38pw, by a factor of about x 10. There is a misunderstanding that SE Asia automatically equals low wages. This simply is not so and the generalisation is not appropriate.
Also, how does a UK car worker pay £2000pa in Council tax? He'd need to live in a bloody mansion to be Band A! And what if he lives with his mum? Or maybe you mean Business Rates? Well they have that in India too you know.
I'm not saying it's little more expensive in Asia, it's just that it's possible to think the grass is MUCH greener on the other side of the fence. The are other disadvantages in manufacturing so far from target markets (US/Eurozone) too.
Edited by andy zarse on Wednesday 8th November 15:25
I'm looking at current rates from our company intranet.
The figures may include subsidies as there are big government incentives to set up in some countries.
£2,000 a year relates to the charge an average council makes, based on 2 people or more occupying a property.
This normally means the worker pays for himself and his partner. If alone, he pays 50% more than a single person's tax.
The rates I quote are for average band "D" or "E" properties.
I think you may misunderstand the banding system.
Band "A" is the cheapest taxed, up to band "H" which is the most expensive.
I can assure you that Ford, over at Halewood, is paying the figures I quoted.
If my company were to set up in Korea, today, those are the costs to us of the wages that would be paid.
The figures may include subsidies as there are big government incentives to set up in some countries.
£2,000 a year relates to the charge an average council makes, based on 2 people or more occupying a property.
This normally means the worker pays for himself and his partner. If alone, he pays 50% more than a single person's tax.
The rates I quote are for average band "D" or "E" properties.
I think you may misunderstand the banding system.
Band "A" is the cheapest taxed, up to band "H" which is the most expensive.
I can assure you that Ford, over at Halewood, is paying the figures I quoted.
If my company were to set up in Korea, today, those are the costs to us of the wages that would be paid.
Edited by sean5302 on Wednesday 8th November 15:36
Gassing Station | Motoring News | Top of Page | What's New | My Stuff