Ford Had a Better Idea
Given all we’ve heard for months now, one might think the U.S. has only two big automakers: General Motors and Chrysler. There is, of course, one more, but we’ve heard little about Ford. GM and Chrysler have received a ton of money from the federal government. As reported by the New York Times, Ford has remained independent by not taking a dime.
We heard a lot about Ford in November of 2006. It was then that Ford’s CEO, Alan Mulally, mortgaged all the company’s assets for $23.6 billion in loans from the country’s largest banks. The economy seemed healthy then. Borrowing billions by a company like Ford wasn’t hard to do. But why in the world would Ford do something so drastic? According to Mulally, the money would give Ford “a cushion to protect for a recession or other unexpected event.”
Maybe Mulally is a genius — or just lucky. In any event, Mulally and Ford deserve credit for showing leadership and then following up with tough decisions like selling off brands, becoming smaller, and focusing on efficient cars rather than trucks and SUVs. All of this — plus reaching agreement with the United Automobile Workers to finance half of a new retiree health care trust with company stock — was done well before the bottom dropped out.
Ford is hardly on solid footing. It’s still a long road to surviving the worst car market in decades. But with vision, luck, and a self-sufficient spirit, Ford is operating its own company without bailout money. That’s why a recent national study by AutoPacific found that 72% of those surveyed say they’re more likely to buy a Ford.
I’m guessing Ford employees are finding their work more fulfilling right now and are more willing to go the extra mile.
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About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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Samuel Gompers, the first president of the American Federation of Labor, forerunner of the AFL-CIO, said, “The worst crime against working people is a company which fails to operate at a profit”. Amen!
No surprise – Ford is a visionary company featured in Jim Collins’ and Jerry Porras’ Built to Last. Ford sticks to their core values and pricipals year in and year out.
The comparison company to Ford, in the book, is GM.
Go back and re-read the book especially with todays’ economic climate in mind.
Vision was a big thing at Ford from Day One, and it’s still a big part of their culture.
An important component of vision (something HR professionals need to remember) is willingness to go in a direction that is not necessarily obvious to all the Yes Men, focus groups, and satisfaction survey results around you.
I’m reminded of Henry Ford’s comment (paraphrasing) – “If I listened to my customers I’d have settled for breeding faster horses.”
Paul, Rich, and Frank,
Great points by each of you. Thanks for taking the time to weigh in.
John