Shareholders Are Pissed About Ford Killing off Sedans; Silly Ford Thinks It’s Reinventing the American Car
Ford Will Have the Freshest Showroom in the Industry by 2020….a Showroom Full of SUVsby Robert Moore, on
Why Ford CEO Jim Hackett thought that killing off almost all of Ford’s car lineup, after watching stock prices drop 12 percent in five months, was a good idea is outlandishly puzzling. That’s a huge drop in stock price, and his plan is to cut $25.2 billion in costs by 2022. Apparently, the route to take to do that is to force loyal Ford customers into trucks or SUVs. He’s taken a lot of heat from shareholders over this move and actually had the nerve to say that Ford is “reinventing the American car.” So, riding a wave that was created by consumers, while killing off most of your car lineup, is now considered reinventing the American car.
Even worse, Hackett wants to blame the sour reaction to this move on media coverage, saying “I wish the coverage had been a little different. If you got beyond the headline, you’ll see we’re adding to our product lineup, and by 2020 we’ll have the freshest showroom in the industry. The headlines look like Ford’s retreating. In fact, nothing could be further from the truth.”
Truth be told, the brand is killing off an entire range of affordable, economical cars in hopes that loyal customers will be willing to step up from a car like the Taurus or Focus to an SUV. According to him, customers say they want Ford SUVs. That’s “what they really want.” I don’t know about you, but to me, that sounds like reasoning that tries to shift the focus away from him being an idiot in hopes that the next five years will yield a better profit with no cars.
Well, he better be right. I mean, Ford isn’t reinventing the American car – that’s not how this works. But, if things don’t work out, and this proves to be as much of a bonehead move as it appears to be, Hackett will probably find himself out of a job a lot sooner than he expected.