Ford, berefet of ideas is now resorting to a political strategy.

4 Comments

1. 

   btower on December 8, 2005 at 8:16 am

   What Bailout?

   What Conspiracy to beat up on gays?  

   There is a huge difference between pulling back on an advertising budget and “beating up on gays”.

   • 

     KlatooBaradaNikto on December 8, 2005 at 8:49 am

     WSJ reported last week that Bill Ford is seeking large infusion of federal tax money for him to start producing components for hybrid cars.At present he is purchasing those components from Toyota.

     This morning, it is reported on another blog that Ford executives held secret sessions to cozy up to the religious right in order to ensure that their political moves will find support.Some of these executives apparently were Bush operatives.

     This is why I posted the diary.

     • 

       btower on December 8, 2005 at 9:10 am

       Text from Bill Ford Jr’s Speech:

       …Today, I want to talk about several measures America can take in the short run that I believe will bear fruit for years to come.

       First and foremost, we all know that research and development is the lifeblood of manufacturing. But as I said, it’s costly and the payoffs are longer-term. That’s why I urge Congress to invest in America and dramatically increase the R&D tax credit to more directly support companies working on advanced vehicles, components, and fuel technologies. Technologies like hybrids, ethanol, hydrogen, and clean diesel. This investment would help build a supply base right here in America for critically-needed energy saving fuels.

       Second, I’m sure you’ve read about the turmoil that global competitors have thrust upon domestic auto suppliers. Part of the problem, as you know, is the simply fact that there are too many plants with old technology that’s becoming more obsolete with each passing day. That’s especially true in light of advanced technologies that are created outside our borders.

       I believe there is an opportunity here to convert some of our industry’s existing plants so we can build advanced technological vehicles and components. I urge Congress to consider tax incentives to help American manufacturers convert existing–but outmoded plants–into high-tech facilities.

       Third, converting facilities is only part of the equation. We also need to invest in the American workers who build the products with training programs and incentives to upgrade worker skills. That will help us move into the future while preserving American jobs.

       Fourth, building advanced fuel vehicles is essential. But getting Americans into them is equally important. We need to reduce our dependence on foreign oil. Hybrids and ethanol vehicles are the most practical ways to do that right now–not in the distant future. But hybrids are still more expensive to make than pure gasoline-powered cars. The 2005 Energy Act provides up to $3,600 in tax credits for Americans who buy hybrids. For example, beginning January 1 st, our Ford Escape and Mercury Mariner hybrids will be eligible for those consumer tax credits. By encouraging consumer support for a promising new technology, our government is supporting innovation and investing in our nation’s future. We should look for other ways to encourage Americans to buy fuel-saving vehicles.

       And governments should be leading the way. By 2010, for every need that can be met with a hybrid, governments at all levels should be buying only hybrids or other alternatively fueled cars.
       .

       Fifth, I spoke earlier about our ethanol program. The 2005 Energy Act encourages the use of ethanol, in particular the higher content E-85 fuel. It’s a great, innovative first step – but it’s only a first step.

       The U.S. auto industry has produced more than five million flexible fuel vehicles–but there are only 500 fuel pumps in America . So while we’re building vehicles that can handle ethanol, Americans have few places to go and fill up their tank. If we’re serious about reducing our dependence on foreign oil, we need to get serious about making ethanol available to customers.

       Ford is working with VeraSun and other partners to expand retail ethanol pumps in gas stations around the country. But we can’t meet the infrastructure needs by ourselves. All of us, including fuel providers and the government, need to do more to build an infrastructure — so we can go from hundreds of fuel stations to thousands.

       Sixth and finally, in September I wrote President Bush a letter suggesting he convene a group of automakers, suppliers, fuel providers and government agencies to address America ‘s energy challenges. Later today, I’m meeting with members of his administration to discuss this idea further. Because now, more than ever, I believe we must take action. If we put our heads together, and keep in mind our shared interest in America ‘s future, I’m confident that we can innovate our way toward the right solutions.

       There’s very little in here that I have a problem with.  Remember the WSJ will cheer the failure of GM and/or Ford because either or both will destroy the UAW.  Thus weakening unions around the country and destroying the support base for Dems in the Blue States.  

       As to the lobbyists, I’m withholding judgement for now.  The people I know in Ford marketing (sub Executive levels)(a few gay themselves) assure me the decisions were made for purely budgetary reasons without proper consideration of the perception of the cut by the gay community, media and progressive blogosphere.

       • 

         KlatooBaradaNikto on December 8, 2005 at 11:18 am

         As a person who has beeen involved in the auto industry as an engineer for along time, I have to take issue with your assessment of Bill Ford’s speech. His entire managemnt team had bet on gas guzzlers for a long time and ignored technologies like hybrids.It was the move by Toyota and Honda into these technolgies with their own funds and their roaring success after an initial period of losses that has Ford in a panic.He claims R&D costs money.It will cost more if you have misdirected R&D as Ford has done for many years.Their R&D facility has not produced any significant new technology in a long time.

         I am willing to bet Ford will continue to produce massive SUVs with the hybrid technologies for which they are seeking government subsidies.Bill Ford’s entire speech shows that he still does not understand that his problem is that the public has already discounted Ford’s cars as unattractive and low reliability vehicles and simply wants to wait out until another round of Employee Discounts are offered next spring.No amount of tax subsidies will bail out a corporation that does not focus on its products.

         If I were a Congressperson, I would ask Bill Ford, why it is that the Japanese manufacturers are able to finance the development of hybrid cars on their own and are willing to take market risks when GM and Ford were busy finding reasons from an accounting perspective on why they could not do it.

         As an old man who has lived through the death of our steel industry, I see a repetition of the same thing in our auto industry causing pain to so many of my friends and relatives in Michigan and Indiana.It is now too late for our auto industry.The momentum is now with the overseas auto manufacturers.Hopefully, our people will be able to land on their feet with the transplants.