Detroit News Columnist Daniel Howes said in a recent podcast essay that Ford Motor Company is “lagging” behind General Motors with regard to readying for the future.
“A respected Wall Street analyst says Ford’s earnings outlook could be cut in half in the next 18 to 24 months,” says Howes. The predicament in which the automaker finds itself today is one in which “its best-selling F-Series trucks produce the vast majority of its fat profits [and] it’s not moving quickly enough to reshape its global footprint and get out of places where it doesn’t make enough money.”
General Motors, meanwhile, suffers from neither problem. The company sold its European Opel/Vauxhall unit to PSA Group earlier this year, after years of losses in the region. It also put the Chevrolet Bolt on sale this year – the first pure-electric vehicle with more than 200 miles of range for less than $30,000.
That’s to say nothing of the advent of vehicle connectivity, where again, Ford is struggling to keep up with GM’s OnStar and in-car 4G LTE.
Howes says that former Ford CEO Alan Mulally, Mark Fields’ predecessor, was brought on to “save Ford from itself,” but that his practices left Ford woefully under-prepared for the direction in which things are moving. Mark Fields, who was replaced by Jim Hackett just last month, did little to remedy that situation.
“The house that Alan built is necessary, but it’s not sufficient for the new world,” Howes says.
(Source: Detroit News)