Ford has just announced the sale of part of its ownership interest in
Mazda.

-dave

"The automaker will sell 20% of Mazda today, reducing its holdings to
about 13%. Mazda said that it will buy back up to a 6.9% stake for as
much as 17.9 billion yen ($186 million). Unidentified "strategic
business partners" will purchase the rest of the shares."

http://www.freep.com/article/20081119/BUSINESS01/811190372

Very good news. The top brass just does not get it. I work there, I have
spoken with them face to face. They have 76 MPG "C" class cars (5 adult
passenger) they sell at a profit to the rest of the world for the
equivalent of $16K USD.  Because their spreadsheet says the R.O.I. for
diesel this cheep engine is longer than their "EcoBoost", no American
will buy a 76 mpg car. If that was true, rather than 70% of their
SuperDuty trucks should all be gas rather than the diesel engines
because the formula for an engine they buy from a US supplier is much,
much more than the 1.4L DuraTorq they sell to Peugeot and use in their
own C class.

More of an example, this week, the Bog 3 top brass all flew to D.C. from
Detroit on separate private jets to ask for loans, no plans in pocket...
I guess they never heard of "Jet-pools" let alone First Class.

Anonymous.


You are forgetting the NOX rules.

Paul Lamar

NOx is solved, Paul -- Tier 2 Bin 5, same as gas cars.  Or are you
suggesting that US automakers aren't as smart as the folks selling compliant
diesels in the US like Benz and VW?

The only thing that's going to get me out of my 11 year old 45mpg diesel
station wagon is either a higher MPG diesel or a full-electric.

Andy Hecke

NOX is not solved for cheap diesel cars.

Paul Lamar

Paul

Depends on your definition of 'solved' or cheap.  I have been away from
this issue in detail for 30 years but the quick response turbochargers
technology we spoke about only four years ago has  already been
implemented in European diesel cars. Granted Europe has different
emission standards then say California but I am willing to bet they are
on par with the rest of USA.

I agree with Mr. Anonymous, Ford and GM have always concentrated on
maximizing profit not market share per se.  Sounds the same but the
route to the bottom line is more round about. Market share comes from
capturing customer loyalty, and the imports nibbled away at it my
providing cars with better quality, lower maintenance, and good after
service, items that are more important then they were in the 60s.

Unions want to protect the workers. An open minded management will work
with the union leaders and make decision that create wealth for the long
term growth.  Replacing humans with robots is not a losing situtation if
blue collar workers are pulled up to higher pay scales through on the
job technical training.  A history of corrosive relationships between
management and unions however will result in slow-downs, sabetoughe and
even blackmail.

Sounds like the big three need an over haul, not a cash infusion. With
such an inefficient management the only thing the cash will do is delay
the inevitable year at most and reward a few executives who caused it.

Doug  in Japan

Doug, you are dead on. I have walked through Mercedes assembly plants and Chrysler in the past couple of years. Exact opposite. Chrysler is almost all robots, and the very very few robots in the Mercedes line does the dash board, security # scribing, welding and paint. (Ford and GM plants I have seen are closer to the Chrysler example)

The best example of how out of touch the top management of the 3 is when they flew separate private jets from Detroit ( Pontiac, Ypsilanti, Detroit) to DC to plead how hard up they are for a loan... I guess no one mention they might want to Jet-pool, at least. They could have justified one jet full of staff as more cost effective than 30 last minute first class tickets commercial, but they did not. They are stuck in business as usual at the top of the food chain. If you were inside during the latest rounds of white collar cuts, you would have noticed they had a ruler of X-% cut in white collar cost. Who did they cut ? The many many layers of 6 or 7 figures managers ? Nope. The vast majority were 5 figured salaried workers. They all have so many many layers of managers it is not funny. They have managers who report to managers, etc, etc. and at each level, the manager might have 1 or 2 people reporting to him. The manager might be level x reporting to a manager of the same level reporting to a manager of the same level. You get the point. Its like the old Soviet structure at the top (I have family connections from Soviet Times)

The NOx issue Honda has solved without reagents (urea injection post combustion) and all the others have with the cow urine injection and the imports are / will be selling here in the next year. Yes, current Tier 2 BIN 5 is more strict than current EURO 4, but EURO 5 / 6 (emphasis on the 6) is more strict. It starts to phase in Jan 09'. You know that the big 3 have these solution already for production as you can not sell in Europe w/o small diesels.

More to the point on why the top brass does not understand diesels - even with the now 50% higher cost of diesel in the US, they are still selling most of their trucks offered with diesel, as diesels. For Dodge, it is on the order of 70% diesels.  If the consumer only took into consideration the ROI for strictly engine upgrade cost and fuel cost, they will not buy any diesels here. But, we have all been programed that buying a car is an emotional concern. Diesel drivers know their engine will last 2x - 3x longer than the gas burner. They know that they will stop for fuel about half as often.  They know they can burn 100% green biodiesel / veggie oil / etc if they want to. So, the sales are still here. Most important on the emotional issue, what kind of sales would Ford have if they followed the Chrysler example and sold the 76 mpg car here with "76 MPG" sticker on the side for all to see ?

- anonymous

The top brass understands diesels. Diesels are best left to truck engines that need it.
Only 15% of a barrel of crude is diesel fuel while 30% is gasoline. Why waste it on cars. The lop sided demand for car diesel fuel in Europe (read tax policy) has run the price up to the point of damaging the economy  as everything  is shipped
using diesel fuel. Look at the big picture.

Paul Lamar