A strong US Dollar should be a priority for US monetary and fiscal authorities. If the US dollar continues to lose ground against other major currencies, investing in US assets become less desirable to foreign investors. Because of the inverse relationship between bond prices and interest rates, as the deficit grows, the availability of US treasury securities increases, bond prices decline and interest rates rise leading to inflation. And as we all know, inflation reduces the value of real assets.
To think that the US dollar volatility can be ignored because foreign investors have too much to lose to allow the collapse of the dollar seems shortsighted. Foreign investors such as China are stocking commodity inventories and could over time significantly reduce their exposure to the US dollar. Such actions would indicate lack of confidence in the US dollar.
On a different note, Ford Motors Co. reported earnings on Monday along with some promising forecasts. As you read the press release, think about the actions Ford Motor Company has taken over the last year. What are the key factors that differentiate Ford’s turnaround strategy from GM’s?
Tags: Ford Motor Co., US Dollar
Fords turn around plan differs from General Motors restructuring plan in many ways. Ford did not expect any Government assistance to help bail them out and was motivated to succesfully get their company out of this problem on their own. Ford began to solve things by intergrating new technology into vehciles, cutting back expenses, and cutting jobs. On the other hand, according to wallst.com GM has reduced the number of executives and their pay, they have changed their labor agreements, GM is seeking a Federal government loan which they plan to pay back by 2012, and GM plans to cut manufacturing and structural costs. Fords turn around plan has worked because they are working their way back up and imrpoving their sales.
ford has done a very good job with sticking to the plan that they have made. and it shows in the fact that they made a profit of 997 million or 29 cents a share compared to the year earlier. General Motors tried to take the easy way out by getting a bail out. this proved to be a bad call because they are still asking for more and more. ford however is showing great improvement and show no sign of stopping. they did this by using good judgment and management of their money. unlike gm who tried to sell more and more and come up with new attractive cars which also proved to not help them out in their race to get back to a profitable business. ford has been very successful which is shown by back to back quarters of profit in there plan which leaves them looking great for the next upcoming years.
the key factors that differentiate Ford’s turnaround strategy from GM’s is that first of all, Fords back to back quarterly profit shows that they will succeed with their goals of having no help from the government bailout and still have a profit. Ford chose to deny any help from the government and with that said they are not only overcoming their obstacles by having its first operating profit in more than four years. The company GM is showing that it is a weaker company because they took monety from the government and are still on their hands and knees begging for more money. Ford shows that it is a better achieved business than Gm because no matter what stands in their way they are determined to surpass it, unlike GM where they just want free money to bail them out.
The key difference between Fords turnaround strategy and GM’s is that they went for a complete reconstruction and incentives to boost sales while GM went the bail out way that keeps them from making profit until 2012. Having to pay back that money to the government keeps GM from pocketing any profits therefore hindering there chances of innovations in the next couple of years. Fords quarterly profits show that not only are they not going to need the government bailout but they will be posting back to back profitable quarters. Ford is battling through the tough times with innovations and incentives and that is why its turnaround strategy is dominating GM’s.
Ford made a smart move by not asking government for money to same them like GM. Ford reported the profit of $997 million in the past quarter on Monday and said that they will be more profitable in the sales those will come out in 2011. Asking Money over and over from government shows that the company is not strong enough to survive in bad times like GM. They will have to work hard to keep their company in the market. Ford is smart and to keep its position in the market they are trying hard to make their company successful and now they have come up with that they will be more profitable in 2011. Ford know how to stay in the market, how to keep themselves on the top, and have really good, smart people who work in the company. Companies can only be successful only and only if they have smart people working.
Ford has been smarter then GM by successfully making cutbacks and up to date vehicles rather than trying to be bailed out by a government that is in debt itself. In the wall street journal its stated “Fords Europe Sales Rise 13% in October”. GM on the other hand when into bankruptcy and is actually requesting money still and promise to pay back by 2012.
By not being hindered by the looming need to pay back the bail out money Ford was able to pull forward in the car industry. It’s a classic tale of the tortoise and the hare, Ford being the tortoise and GM the hare. The hare wanted a boost to increase what they had but ended up snoozing and squandering it away. Mean while Ford took their product up a notch, creating something people wanted and pulled through by themselves to produce a $997 million profit and become one of the top profit car companies closely following Toyota and Nissan. This shows that if you have something people want and push it to them on your own instead of leaning on a crutch where everyone can see, it sells better and therefore a better profit.
What are the key factors that differentiate Ford’s turnaround strategy from GM’s?
Ford motor’s over the years has figured out that if you lower the cost of your vehicles and keep the service fair and reasonable people will buy. I have been a Ford person since I started driving. My whole family has so far. They are cheap and are willing to help you with any issues you may have with your car. They have a positive cash flow because of the sales men and costumer service they have. Ford Motors is reliable and they are always coming out with bigger and better things.
The key factors that differentiate Ford’s turnaround strategy from GM’s are quite simple. First off, Ford chose not to be a part of the bailout like GM did. GM’s bailout through the government only served as a way for them to stay afloat , rather than as a way to produce profit. GM is currently still seeking more money from the government to keep the company from continuously nose-diving. Currently, their failures can be seen in the elimination of such SBU’s as “Hummer” and “Saturn.” Unfortunately, these once prosperous SBU’s have now become defunct. On the other hand, Ford, through consistent sales and customer service has maintained postive profit increase, which in turn has netted the company a profit of $997 million in the past quarter.
Its amazing how Ford really had some faith in doing things their own way and it was the old fashioned way. Instead of doing cash for clunkers they just laid off workers, cut budgets, and were very stingy for awhile to reduce costs for the company. Its weird because I actually bought a brand new ford last year. I went to toyota and nissan and kelly car dealerships and I wasnt really satisfied with their cars nor service they provided or their deals. They were gonna give me almost to nothing for my trade in and i was very discouraged. So I went Ford thinking i wasnt gonna drive away today with a brand new car. Suprisingly I did. 08 Custom made silver ford focus, with sunroof, and 10,000 miles for $12,000. I talked them down a thousand because Ford is willing to sell for anything but profitable. They gave me fifteen hundred for my trade in and gave me great first buyers deals and knocked off a few bucks here and there. I was very satisfied. Had they not been in a recession would they still be like this? I have no idea but every customer right now is very important and vital to ford. Also the new trend is saving on gad so Ford has also made new cars they run more efficently on gas compared to the GMS hummers and other big gas guzzlers. So their heaading into a good direction and was safe to stay with their methods of suriving during a recession.
The major difference between Ford and GM’s turnaround plan is the fact that Ford’s worked. Ford decided not to take money from the government, which is smart since its just another liability on the balance sheet, instead Ford decided to make some smart decisions for their company. They lowered the prices of their vehicled to reach a broader market, they cut expences buy cutting jobs and manufacturing costs, but most importantly, they stuck to thier plan. Unlike GM, Ford knew that this problem was not going to be a quick fix. GM is still asking for money, and is reducing its costs by cutting pay and jobs, etc.. yet they cannot dig themselves out of this hole. Ford has seen positive turnovers for the first time in a couple of years and it looks as if it is only going to get better for them and worse for GM. (I see a GM/ Ford merger in the future.. just a thought).
MAKE UP BLOG…….
The U.S must step up its game and make a turn around on becoming better known for a strong US dollar. Right now the U.S is in danger of loosing the value of the us dollar, we must focus on making the US dollar stronger. If not Euro might just take over, im sure they wouldn’t mind. This all sounds simple but its not, it affects many people, it raises intrest rates, and may lead to inflation. In the business world you must think will this be a smart move for every other country involved, becasue at the end everyone must do whats best for them, because of this I do think it is possible the US dollar can be taken over by the Euro..
Make Up Blog From Last Week.
Ford Motors Co. has done the seemingly unthinkable and unpredictable lately, turning a profit. General Motors has come under great scrutiny lately for all the money they have taken from the Federal government and are still in dire straights, while on the other hand Ford has been productive through a very difficult time with no help. In comparing the two, Ford has clearly done the better job of integrating new, cost effective technology into their final product and it is proving to work. Not only is the strategy from Ford working, they were even able to update their financial forecast for 2011 to “solidly profitable”, according to the Wall Street Journal. Ford Motors Co. is ultimately proving the belief that we as a society can not “afford” to allow certain corporations to go bankrupt is wrong.
Make up blog from last week.
Ford Motors Corporation has been the one and only manufacture in the down economy to turn a profit. According to an article from CNN.com, “The Obama administration will commit another $30 billion on top of the $19.4 billion it has already given GM to cover its losses and fund its operations.”. When looking at this it is hard to realize that after all the money the government has given GM, they still have not pulled out of their slump. In an article in Star Tribune written by DEE-ANN DURBIN and TOM KRISHER, it said that “Ford improvement was fueled by U.S. market share gains, cost cuts and the government’s Cash for Clunkers rebates, and it now expects to be “solidly profitable” in 2011. Clearly, General Motors should look at what Ford is doing and try to adapt these changes into their company so that they to may be able to recover from bankruptcy.
I am really impressed with Fords action throughout this bailout. It shows how great of a company Ford is when they said they don’t need any money to help bail themselves out. Ford stayed strong till the end. Even though they cut alot of plants and cut alot of employees, they stayed strong without having the government intervene. During the past year it having Ford put out many new models and new line of vehicles on the road to show that they are not effected by the economic crisis. They brought in many models from Europe smaller commercial vehicles that they would give a try to sell in America. that is a great success right now. Having all to relate to GM, GM gave into the bailout money from the government and now are having a tough time to stay up with a company like Ford. GM just havnt had great strategic planning on their part from the beginning.
Ford faces most of the same challenges as GM, including skyrocketing health care costs, the annual tab for which Ford says equals what it pays for steel to build cars, and pension costs.
In addition, Ford has been forced to enter the costly employee-discount incentive fray invented by GM. The campaign has boosted vehicle sales but at a cost. Product development costs and costs to fix quality problems have also risen. Ford further got socked with unexpected costs related to Visteon, the parts-making arm it spun off. And, like GM, Ford’s investment rating plummeted to junk status, making it more expensive to borrow money.
Ford’s problems, like those of GM, are compounded by slumping U.S. sales of once highly profitable truck-type vehicles like sport-utilities. More competitors have invaded that turf once dominated by U.S. makers, and high gas prices have prompted consumers to consider other kinds of vehicles.
Ford recovery differentiates from GM in many positive ways. Ford recovered by enacting difficult cost cutting measures gm failed or didn’t care to achieve this without government finance assistance and tax payer money. Wall Street Journal’s article shows that Ford is willing to fight with its labor unions to keep costs down ware GM let union demands send them into what would have bin bankruptcy if not for the bailout. In the end ford was willing to fight for its survival by cutting jobs, finding cheaper materials and offering special features GM by contrast gave up without a struggle.
One thing is the brand that Ford puts out. Their recovery solely depends on their efficiency with their products. For example, Ford trucks have better specs and statistics compared to the sales of GM trucks…
Instead of taking the easy way out and realizing “what you were doing before didn’t work, so what makes you think it will again.” General Motors plan was just to get bailed out. Ford on the other hand actually took action in the declining of the economy so they could attempt to make profit and help the economy at the same time. With new innovations and incentives, Ford didn’t set goals they couldn’t meet. They realized that these are serious time and they want to make a profit in the near future instead of paying everything back in 2012. This is why GM is begging for more money and Ford is profiting $997 Million in the past quarter and soon to be greater in 2011!
The key factors that differentiate Ford’s turnaround strategy from Gm’s is that Ford refuse to get money from government unlike GM that too the bail out and won’t make profit till later on. The back-to-back quarterly profit proves evidence that Ford will succeed with no government help and still have profit for example, last week on Monday profit shows that they were $997 million. Since Ford made the correct choice and not getting government money they will most likely have “break- even or better solidly profit by 2011.” There improvements came from job cuts, lowers costs for material and consumers buying. Ford is heading in the right direction and if they keep doing great they will always dominate GM.
While GM has been marred in turmoil and has seen record financial collapse and incredible instability, the original American automaker, Ford has weathered the storm and is once again collecting a profit. There are countless reasons for this. First off GM made the mistake of accepting billions in government aid that they would have to pay back and had added pressure to use effectively. Meanwhile Ford rejected the concept, determined to tread water. The result has been while Ford has hit many all-time lows in numbers, they are now back on top of the market. Ford has also produced more efficient vehicles while keeping the cost of producing them at industry standards and not vastly from those, this includes reducing unnecessary costs to both employees, the company and savings that would be passed on to a consumer market desperate for savings.
Ford’s turn around strategy greatly differs from that of GM. Ford is trying to get rid of the branches that are doing poorly in sales, while GM was offering early retirement for its employees.n comparison to GM Motors Ford kept their engineering simple by adding technology and comfort to their previous cars, i.e taurus. GM might be use the way the Ford company use to increase their margin. people looking for the cheap and more quality. and the ford has the cheap and more quality than GM. I think ford made right decision for the company.
The way Ford turned around their losses and they way GM turned around their losses are two different ways. Ford did not take any hand outs from the government. They made profit back on their own by statgeically have deal and sales on cars so that people will buy their product again. GM on the other hand took a hand out from the government which included billions of dollars to save theri company because they were so far in debt, that having deal and sales would not bring them back to that security level of making money. According to j-body “With regard to cost competitiveness, GM has made major strides toward achieving its global target of reducing automotive structural costs to benchmark levels of 25 percent of revenue by 2010. Structural costs are already below 30 percent, compared to 34 percent in 2005, despite weaker than expected U.S. industry volumes. In light of the progress already made, the company fully expects structural costs as a percentage of revenue to be further reduced beyond 2010, with a target of 23 percent by 2012.” Even though they have made strides toward achieving global marlet, they still won’t to be back to normal until 2012 and thats even with a hand out from the government. I believe that ford is doing a better job because they are doing it on there own with out any help because they believe they can succeed.
What are the key factors that differentiate Ford’s turnaround strategy from GM’s?
The most important key factor that differentiated Ford’s turnaround strategy from GM’s is; laying off employees, turning out more efficient cars, and handeling business in a professional mannor. Where as GM asked the government to loan them money and promised to pay them back by 2012. Ford will most likely make the same amount of money or more by year 2011 and will be able to keep that money as profit where as GM will have to repay their loan and will have not much to show for all the profits they had made.
Also, by not asking for a loan from the government, it shows that the company is able to survive through hard times on it’s own, whether they need to make cut backs, lay off employees, or add more hours and less pay for the executive managers. This shows to the population of the US that they are most likely to make it through and to most likely buy thier cars, trucks, and SUVs.
There are a few key factor’s that differentiate Ford’s turnaround strategy from GM’s. One of these key factors was Ford’s ability to decline government aid boosted its image with many American consumers, and its market share increased in the third quarter. This quote can be found in the Wall Street Journal in an entry by Matthew Dolan and Jeff Bennet. Another factor was that the Ford Motors Company had also kept its production in check so that it could keep prices firm and reduce the need for hefty sales incentives, which pumped up its margins. As a result of better production they had a more extensive inventory when the governments “cash for clunkers” rebate deal came out cause a surge in sales, whereas GM had less inventory.
On a different note, Ford Motors Co. reported earnings on Monday along with some promising forecasts. As you read the press release, think about the actions Ford Motor Company has taken over the last year. What are the key factors that differentiate Ford’s turnaround strategy from GM’s?
Ford has done a few important things to help themselves in these times including, more efficient cars, and doing it without the help of government money. GM had to ask for loans from the government to stay afloat but even though they may be looking at large losses next year, Ford has been making enough money to do it on their own instead of the extra help. If consumers read this article they would feel much stronger about Ford as a company over GM because GM can’t stand on its own and Ford can. Fords cars have not changed much, they are still simplistic, they have just added featured to keep up with the times and the demand for them, such as navigation systems, luxurious interiors and sleek style bodies. People are more likely to buy from ford for the confidence they can have in them
There are some key factors that differentiate Ford’s turnaround strategy from GM’s. To start off, Ford took control of things and decided to construct new up to date cars. They did not go and request a loan. This shows a very smart move in contrast from GM. The big difference now is that GM will have to repay the bank for the loan, where Ford gets to keep its profit and maintain a well manage company. These differences are of great value when distinguishing which company made a smarter move.
There are many differences between Fords bounce back and GM’s failure. Ford did the right things with their money management well GM just asked the government for more and more money. If your asking the government for money, how does that work for your public image? Both have cut jobs and pay. The biggest difference is GM is trying for government bail outs and help well Ford has done it on their own. The way that Ford handled the situation was much better for business and the public image of their company then the way that GM handled the situation.
The way Ford has be come successful of GM is that Ford has made cut back. They took back what was not selling, and introduced a new, and better product, with more realiable specs, and funcionalities than what GM had produced. Another reason why Ford hwo ford is doing better, they have increased there share by 29 cents making a profit of $997 million.
Ford, although closing some plants and making some cuts, they did not opt for the government bailout. It will take GM a long time to pay back the money they recieved, and Ford can slowly pull out of the recession. Ford is clearly a better run company GM if they can manage themselves in hard times and not ask for more and more money from the government.
Ford is the greater company due to strategy, loyalty, and economice progression. Ford has changed their marketing plan by using new technology and thus creating more efficient vechicles. Also Ford does not have a deficit like GM does since they borrowed money from the government. Ford has the ability to grow more rapidly since customer loyalty seems to be greater. Thus Ford will grow beyond GM.
Ford decided to reconstruct its company by no getting any kind of government aid. Instead ford decided to improve their vehicles by taking back old non fuel efficient vehicles and putting out fuel efficient vehicles. Ford also improved their technology on their cars and unfortunately cut back on jobs. The cash for clunkers program was a great idea to bring their sales back up.