Domestic Policy

Ford Hits Hard

January 24, 2006 ⋅  E-Mail Article ⋅  Print Article ⋅ Post a comment

Is Fords problem a product of our global environment, or did they just lose touch with their customer base. There are arguments supporting both sides, the only sure thing is that 30,000 more Americans will be out of work soon. What can be done?

Many say Fords problem is they lack good design; they are just not creating vehicles people in North America want to buy. Many say this is because they are relying too much on foreign developers and engineers. Other individuals say that Fords was caught in an outsourcing world they were not ready to compete in. They did not embrace a co-operative model, instead they tried wholesale outsourcing, this was, and still is, a disaster for them. The erosion of their North American workforce has caused erosion in sales, and this they say has hurt domestic sales remarkably.

Regardless of which answer is correct, the hard fact is America is experiencing a strange phenomena. At many companies around the world profits are rising but sales are declining, I don’t think it takes a genius to see that the short term pop of outsourcing is hurting the long-term profitability of many companies.

If we are not paid to build it, we cannot buy it, and now major companies are figuring this out. The result is a partnership between companies stationed in India, and China. Companies are now seeing that they must keep staff in America in order to maintain sales, they are also utilizing smaller outsourcing offices in India, and China, as supplements, not wholesale replacements. Many believe in the long run this is the best model for companies venturing into the outsourcing, and off-shoring, waters.

Let’s just hope Fords gets it together and regains its national prominence, it would be nice to see a ‘now hiring’ sign in an American auto manufacturer for a change.

Ford Rebuilding Plan

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