It's The Plants!

Bloomberg News reports: Ford Revisits '80s Lacking Uncle Sam's Safety Net. We are having trouble following Mr. Levin's article. He writes:

The trouble at Ford today isn't weak demand for cars in the U.S., as was 26 years ago.

Really? But folks aren't buying Ford's cars. He continues:

This time the Dearborn, Michigan-based automaker finds itself burdened by daunting health-care and pension costs, plus a dysfunctional corporate and manufacturing structure.

Oh, it's employee costs, Bill Ford and old manufacturing plants that are the problem?

That translates into a company that fails to make cars that enough consumers prefer to those made by non-U.S. automakers such as Toyota Motor Corp.

Years ago people didn't want Ford cars. And today people don't want Ford cars. It has nothing to do with old-man Ekrem's pension costs.

Look, all the headlines need to say are, "Ford Not Making Cars People Want To Buy." That's it. There's not much more to say. Once Ford does, change the headline.

Comments

[Dan]

I think the point the article was making was that 26 years ago the entire market was in a slump, and Ford suffered along with all other manufacturers.

This time there is not a significant shrinkage in the entire market taking down all players, and Ford is suffering while other manufacturers gain market share at Ford's expense. In other words, Ford has become less competitive and is underperforming, whereas 26 years ago the whole market suffered along with Ford.