Ford Considers Volvo Sale — Again (Sell Them to Honda and Buy GM/Chrysler in Bankruptcy)
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.
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Likely Bailout Scenario: ‘GM and Chrysler Filed for Bankruptcy Today…’
Are you tired of grown men flying on private jets to ask for bailout Jello? Yeah, I am, too. So, what should happen? That’s pretty easy to answer: Someone’s packing shop and going home. Allow two of the three automakers to fail, file bankruptcy and restructure (which isn’t likely). Ford is the healthiest of all three automakers. It has $29 Billion in cash and credit — Enough to last the automaker through most of 2009.
Recently, I created a scenario like this and I must admit that it’s very possible. If congress does not provide the $25 Billion (and they shouldn’t), General Motors and Chrysler will collapse by year end. Because they will run out of money, a restructuring for either company would be impossible.
Enter Ford
Ford is really the wild-card in the industry’s crisis. It appears the company will have the last laugh, you know? Here’s an opportunity for Ford to become the #1 automaker — In fact, the only automaker. Yep, they would work out a deal to acquire GM and Chrysler on several conditions: They would have to sell 3 brands and 10 plants.
Through the guidance of Alan Mulally (no one should underestimate this man — I believe this is his moment to shine), he’ll make the tough choices on which brands to keep and sell. He’ll choose the ‘best-of-market’ as much as possible and keep on a lackluster brand or two for refining later. I’ve already suggested to Ford that they sell Volvo to Honda or even BMW. It’s a premium brand that deserves a premium home. The company should have never bought Volvo. Never. I’m still surprised the Ford family even allowed Jacques Nasser to go on a car binge like he did.
In case you’re wondering, the brands and plants sold off by Ford will most likely end up in various hands. The most comforting news is that the affected brands will still live on — But only under a different company. Yes, boys and girls, that means Ford will not be the only game in town. There will be at least 3 startup auto companies in 2009. They’ll be nimble, innovative, creative and forward thinking. They will immediately re-tool their factories and modernize manufacturing processes for the best efficiency possible.
What will the startup automakers mean for Ford? Fierce competition! The startup automakers might be small, but they’re also ran by a new breed of thought leaders and visionaries who aren’t afraid to push the envelope. They will certainly tap dance very well with Ford, and in some cases, out dance them on technology. However, with the hands of Mulally at the helm, we’ll be quite proud of the ‘new Ford.’
Let’s make sure Congress does not give the automakers a handout. Let the industry figure out their turnaround and make their survival possible. Just keep in mind that the scenario above is the likely outcome. You read it here first.
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Bailout: Will Ford Become ‘Number One’ Again?
I’m currently having a late-night thinking session where I’ve been thinking about social programming (TV, radio, etc.) and other interesting social concepts. The thought that came from left field was this:
Congress will not grant a bailout package to the automakers. General Motors (GM) would be the first to collapse by January 18, 2009, followed by Chrysler on February 6, 2008. The lone automaker will be non other than Ford. Alan Mulally will then flex his negotiation skills and convince Congress to grant them the $25 Billion bailout on the condition that they purchase the assets of GM and Chrysler, while attempting to save as many jobs possible.
When one considers the hemorrhaging of money in my hometown by the automakers, almost any scenario is possible. This is just one of a few scenarios that might play out should Congress not approve a bailout package for the industry. Consolidation is nothing new to Detroit. There were dozens of automakers in the earlier days. Some failed, some merged and the others collapsed. That’s life.
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Ford, Honda in Secret Talks For A Deal?
Ronald Lewis Dot Com Exclusive!
This morning, I discovered an interesting tidbit which led me to believe that Ford and Honda are holding private talks for some kind of deal. A visit from Ford Motor Company’s headquarters in Dearborn, Michigan give way to this hunch based on these direct keywords: “Ford Honda Talks”. What does this mean? Why would anyone within Ford click on an article I wrote suggesting the sell of Volvo to Honda?
Why would this individual search for hits on Google related to Ford and Honda holding talks? Are they someone who’s aware of these talks? Are they a member of upper management? At this point, anything is possible. Right now, rumors are flying that BMW and Ford are in talks to sell Volvo, but BMW denies any interest in acquiring Volvo.
I should mention as well that I’ve received multiple visits from both Ford and Honda to the article which gave me this interesting lead last July. It’s a noteworthy development considering the source of the inquiry: Ford Motor Company. To back up my assertion of this potential development, I have included the visitor data below:
Never Stop Fighting for What You Believe In
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.
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