This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
4/10/2005
Ford
Ford announced that it will have 14 percent less profits in 2005 then expected. The article states higher costs of raw materials amid other causes. With competition like Toyota and other Asian car makers offering high quality and more product variation, some think that Ford will go out of business all together. What do you think?
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3 comments:
It's hard not to see the last 30 years as the beginning of the death of American auto manufacturers. This profit drop is a routine sort of thing, but they've had way too many of these over the years. They've managed themselves out of most of their wiggle room by guaranteeing past workers too much money today and in the future.
Kind of a tautology in your last sentence Marie.
Can someone attempt to explain why Mr. Ford (Ford CEO)and Mr. Wagoner (GM CEO) still lead Ford and GM? It has been almost 5 years since Mr. Ford took over and Ford Motor is still dragging its feet. 5 years are more than enough to design brand new cars. Yet their new cars are far from exciting. What's going on? How come the market allows such companies to operate so inefficiently ? Common sense tells me that if we really where in a free market society, these companies would be long gone....
Well duh ... he's family and views Ford as his own personal sandbox.
I can't speak for Wagoner, who appears to be in the process of getting his head handed to him on a shingle.
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