Ford Considers Volvo Sale — Again (Sell Them to Honda and Buy GM/Chrysler in Bankruptcy)

Posted in Politics & Government by Ronald Lewis

I don’t profess to be an auto guy or anyone of influence. However, behind closed doors, I have managed to convince a multi-billion dollar corporation to switch gears and embrace new concepts. Today, the news is out that Ford is once again mulling a decision to sell Volvo. Last July, I suggested a sale to Honda, who could probably use the Volvo brand to bolster its luxury segment.

Ford: Get rid of Volvo and focus on a strategy to buy General Motors and Chrysler in bankruptcy, because Detroit doesn’t deserve a taxpayer bailout. What Detroit needs is change, which is long overdue. The city’s my hometown, so I think I’m in a great position to state the obvious. No bailout. The auto industry is as brittle and hollow like the many abandoned homes in Detroit, like this one:

Ford is the only automaker in town with almost $30 Billion worth of cash and credit at its disposal. This places the company in an incredibly powerful position to ‘throw its weight around’. It’s time for a consolidation in Detroit:

  • Develop a plan to acquire the brands and assets of both General Motors and Chrysler in bankruptcy
  • To gain government approval, the company MUST divest its interest in several GM and Chrysler brands, plants
  • Approach congress for ‘future financial support’ in the event more capital is needed to save jobs, retool factories
  • Get rid of those blood-thirsty union commitments — They’re just as much the problem as Detroit’s lack of innovation to be competitive in the global economy. Renegotiate. Get concessions
  • Improve employee morale by inspiring them to feel like stakeholders (I have a creative approach to achieve this) — This means doing more than simply improving product quality

Now is the time to consider all options, because no idea is a bad idea. Sink or swim. The foreign automakers are ready to dine on your front porch.

Never Stop Fighting for What You Believe In

Posted in Random by Ronald Lewis

I just returned home from seeing ‘Flash of Genius’, an extraordinary movie about inventor Dr. Robert W. Kearns and his landmark patent infringement case against the Ford Motor Company. Dr. Kearns had the vision and imagination to engineer the intermittent wiper (an ‘option’ in the earlier years of the automotive industry, and after showing his invention to Ford, they stole his invention without a formal approval from Kearn.

Angry and wronged, Kearn filed suit against Ford and won. The take away from this movie for me was quite simple and is a theme I’ve written about before: Never stop fighting for what you believe in!

Unfortunately, Kearn’s determination to protect his invention and patent came at a cost: The loss of his family. Kearn’s wife packed up their kids and moved away, leaving Kearn in a depressive, yet still determined state. He was ever so determined to prove that Ford was wrong for their actions and he succeeded.

Let this be a reminder to continue the fight for what you love. Do not allow ‘dream stealers’ to destroy your passion for an idea, thought, desire, person or anything else. When we embrace the flame that burns within, we eventually realize the victory we seek. I can attest to this from my own personal experience. Stand up and fight for what you love. No one can ever deny you the ability to believe in yourself. It is the fuel from which great ideas are born.

Keep up the fight, no matter what.

Ford Should Sell Volvo To Honda (While Saving Its Future In The Process)

Posted in All by Ronald Lewis

“Reality” has broken the facade many of us suffer from: Our economy is falling apart. And so is Ford. They just announced an $8.7 Billion loss — Its largest ever — based on write downs and mounting losses in North America. Alan Mulally is not Ford’s “golden ticket”. No one can shield Ford — Or any other carmaker for that matter — From the buying decisions of the markets they serve.

Ford’s trucks — Once the premium money maker for the company — Is no longer. They’ve delayed the launch of their flagship F-150 line and are continuing to take drastic measures to reduce their losses. Still, it’s not enough to save the Detroit automaker from terminal failure in the short-term.

In the middle of this half-floating boat is Volvo. Purchased in 1999 by then Ford CEO Jacques Nasser, the Swedish automaker has been to hell and back with its parent company. Like the neglected child of a careless parent, Volvo has suffered greatly under Ford’s hardships. At last count, Ford has contemplated selling Volvo about a million times now. They’ve already sold Aston-Martin and Jaguar, so why not Volvo?

The sad truth is that Volvo was never a good fit for Ford. There’s too much clutter, corporate politics and bureaucracy which get in the way of allowing Volvo to flourish. The greatest mistake Ford made — Under the direction of Nasser — Was going on an ill-conceived shopping spree for foreign automakers, rather than shoring up and breathing new life into its own brands and products. Why would an automaker like Ford — The world’s most imitated trendsetter in the industry — Ignore its own staple of innovation and history in favor of another?

Now that Ford is in “deep recovery mode”, I think now is the time to bid Volvo farewell, divesting its interest in the company and selling it to a better caretaker: Honda Motor Company of Japan. Honda has all the right things going for it:

  • They run a highly efficient and cost-effective company
  • Their model lineup isn’t hampered by gaz-guzzling vehicles
  • They develop some of the world’s most efficient gas engines
  • They have the foresight and business acumen necessary for Volvo’s revival
  • They’ve outpaced American automakers for years in technology and innovation

I think Ford and Honda should talk. Honda would gain an incredible Swedish brand known for its safety innovation and technology, while Volvo would be in more capable hands to nurture its model line, stained culture and future success. Working together, Honda and Volvo could be the match of innovation and success that no one saw coming. More than a “match made in heaven”, the pairing of these two automakers would create an alliance that would make the likes of BMW and Mercedes drool with envy.

How about it, Honda?