While automakers around the globe talk to each other behind the scenes about possible partnerships and alliances to survive these tough times — like a corporate version of speed dating — Ford Motor Co. is just as happy to stay at home.
It’s as attractive a partner as any in southeast Michigan, despite losing nearly $24 billion over the past two and a half years.
Foremost, it has $38 billion in cash and available credit, a globally strong Ford brand that has not realized its full potential and a strong management team, led by Chief Executive Officer Alan Mulally, that has been making progress in improving the quality and safety of Ford products.
Ford officials have been approached by General Motors Corp. in recent weeks about a possible union, although the talks never went far, a person familiar with the situation told the Free Press.
“We’re not seriously engaged in any discussions,” the person said.
That’s because Mulally remains committed to strengthening the Ford brand around the globe and not getting distracted by relationships with other brands and companies. In fact, Ford has been actively divesting itself of these unions, selling off Jaguar, Land Rover and Aston Martin.
More recently, reports have been circulating in Asia that Ford is now trying to sell some or all of its controlling one-third ownership stake in Mazda.
In response, a Mazda official told the Associated Press in Tokyo on Saturday that no decision had been reached on Ford selling its Mazda stake.
Many industry experts say they believe Ford is preparing Volvo for a potential sale, too.
Ford is best off sticking with its own current strategy, said Erich Merkle, a Grand Rapids-based automotive analyst with Crowe Horwath.
“I think Ford has to maintain its focus,” he said. “Ford is doing a good job, and it has adequate cushion,” he said of the company’s finances.
Ford has acknowledged that it talks to other companies from time to time about working together in a variety of ways.
In 2007, Mulally met with Toyota Motor Corp. Chairman Fujio Cho, and many interpreted it as a precursor to a partnership.
Also that year, Executive Chairman Bill Ford, the great-grandson of company founder Henry Ford, stated his philosophical position on a possible union.
He said that Ford believes in getting its own house in order before forming a partnership.
“We’d be a much stronger partner if we were a strong stand-alone company,” Bill Ford told Portfolio magazine.
In July 2006, on CNBC, Bill Ford was asked if there was a good alliance partner for Ford.
“I wouldn’t rule it out,” Ford said. “We have successful alliances already all around the globe.
“We have diesel engines with Peugeot, transmissions with General Motors, obviously a very successful alliance with Mazda. And so, we’re very comfortable with alliances. And you know we are very open to studying all kinds of possible combinations.”
Source:Freep.com
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