Thread: Future of Ford
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Old 12-06-2008, 12:50 AM
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jthorn9 jthorn9 is offline
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Personally I feel just let the companies go under, because the changes needed to keep them aloft, well, I gurantee you they will not due. Here's just a list of things they need to fix:

*) Eliminate unions (a good portion of their losses/cost come in at union expenses. same person that makes $15 an hour at Nissan which cost the customer $20 an hour or so after all expenses is equivilant to an $80 an hour person at Ford/GM that makes the same $15, but union cost really jack up the fees)

*) CUT EXECUTIVES (plain and simple, Ford/GM has grown too large for their own good, they need to can some of the executives that rake in unneeded millions of dollars a year and let that money go direct to their bottom line which will boost retained earnings, and stock)

*) CUT EXECUTIVE PAY (again, there is no need to have an executive make as much money as they do with an otherwise failing company)

*) CUT OUT MIDDLE MEN AND UNNEEDED POSITIONS (eliminate the middle men as it were and people who really only have a job to fill a slot that somebody else doesn't really want to do, drop that labor off on other managers and allow that money to go to employee hours, wages, research, etc.)

*) Become more innovative (Ford and GM are generally way behind the curve when it comes to innovations, it seems as if they're always the last to get out a "new" product, and it's not always been the best)

*) Find new buyers for materials/goods to cut beggining cost, which will affect the end price, or can use that added bonus towards ending gross margin/profit - as stated, cut beggining material cost, not quality, will allow for more money down the road

In short, here's a follow up of the effects of the listed above:

Gross margin will rise - more money for expenses, stocks, net profit/retained earnings, etc.
Operation expenses will fall - more money for stocks, net profit/retained earnings, research, etc.
Taxes will fall - spend less, make better use of expenses, taxes will be less = more money in retained earnings or net profit
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