Ford Motor Company CEO Alan Mulally on Tuesday spoke with Charlie Rose on CBS’ “This Morning” and discussed the auto manufacturer’s next big idea: investing heavily in the Chinese market.
“The Chinese market is even larger than the U.S. market today. We have a very good partner in China … So we have a very strong operation in the United States, we have a growing operation in China,” Mulally explained.
Of course, it should be mentioned that although the market in China may be growing, the market in Europe has seen serious declines in recent years.
Not to worry, says Mulally, Ford can compete with the best in any market.
“I’d just like to say again that what we have done with the unions, with the UAW, with our dealers, with everybody associated with Ford, we have fundamentally restructured this company, so that now we can compete,” the Ford CEO explained.
“Europe clearly is an issue for all of us. It’s the biggest decline in the economy in the market that we have ever seen, but we’ll continue to deal with that like we have in the past,” he added.
The CEO also explained Ford’s decision to help out their competition during the darkest days of the recession.
“We had a very comprehensive plan before the economic slowdown and fuel prices were moving up,” said Mulally.
“So we were well on our way to create an exciting Ford. We made a decision to even testify on behalf of our bankrupt competitors at the time because we felt that it was such a critical time for the industry and the United States economy that, if we wouldn’t have helped out temporarily, that we could have had the United States slip from a recession into a depression,” he added.
“So looking back, we thought about it a lot. Would we do the same thing again and testify on behalf of our competitors? I think it was critical to our country at the time.”
Just a quick history lesson: Ford never accepted a government bailout. Instead, the company borrowed $23.5 billion from banks in 2006, mortgaged its useful assets, and dumped the ones it could stand to part with (i.e. Jaguar, Land Rover, and Aston Martin) so that it could afford to restructure itself. The company has since repaid its bank loans in full.
Meanwhile, their crosstown rival is stuck in loveless relationship with the feds.
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Front page photo courtesy trucktrend.com
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Detroit paperboy
Sep. 20, 2012 at 12:03pmI’m done with any product built by any union………….I will never buy a union product ,,,,,,never.
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nothinghere
Sep. 20, 2012 at 11:54amit’s a little to late for o’bama to complain to the chinese about their auto dealings,gm is a major player in chinese auto manufacturing,go unions.
if i was in fords shoes i’d put out a proposal to thier employees,all new hires will not be union,pay will be regular merit based raises,401k’s,and co.incentive,and profit sharing bonuses.
if ford could be no.1 car seller in america,with a well paid work-force, they would have less incentive for vast investments over-seas.
i think this would make for a better ford,and happier employees.
the statics at the end of the article proves it.
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scrudge
Sep. 20, 2012 at 11:32amAh Yes….. dump gm…. live clean drive a ford
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JRook
Sep. 20, 2012 at 11:52amok beckett even Romney indicated that both GM and Chrysler needed to be reset, although his recommendation was to use the bankruptcy process. you know so a Bain capital could come along and buy it for 10 cents on the dollar, make a ton of money on the way through and leave it without the unions, pension liabilities and creditors. Translation Bain makes money off their backs. Your identification that ford did not need help is neither new nor indicative of the positive effect the auto rescue has had on those companies and the country. get past your ideological addiction and consider the facts.
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piper60
Sep. 20, 2012 at 9:10amYET another car company expanding into China. Why am I not surprised? How about expanding your market share here in the U.S.?
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Texan832
Sep. 20, 2012 at 11:51amand how do you do that ? in this economy with people out of work, everythings getting more expensive? please qualify your remark of offer some insight as to how you would accomplish this.
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hauschild
Sep. 20, 2012 at 8:44am“I think it was critical to our country at the time.”
Love Ford, but cringe when I hear elitists use this statement when describing 2008. I mean, to bet the solvency of a nation on a “think” or a “hunch” – is a terribly elitist and progressive idea.
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cloudsofwar
Sep. 20, 2012 at 8:00amFord is not living off the tax payer as GM is doing. GM made a deal with the devil and now their stuck with him. i’ll stick with ford. ford borrowed money from banks and paid them back unlike GM who sucks on the tax payer hind tit.
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Chuck7884
Sep. 20, 2012 at 10:56amGM makes more than cars and pick ups.there other divisions is what our government bailed out!. You know the makers of the M-1 Abrams, Bradly’s LAV 7′s to name the big ones. A whole slew of other Equipment as well. You really want China investment their?or can they buy law seek help from another nation’s investment.My First m-16-A1 stamped on the lower receiver made by GM under the authority of Colt.So our government had a vested interest in keeping Gm afloat.
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NICCI28
Sep. 20, 2012 at 7:57amGreat now they’re going to make my Ford F-150 out of aluminum. This Ceo is playing right into Obamas hands. He agrees with the EPAs new mpg? Sure the cars will get great mileage BUT meanwhile thousnds will die cause we’ll be driving glorified Smartcars! Great!
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PorkPIG
Sep. 20, 2012 at 8:20ambuy a diesel , I plan on having my power-stroke for at least 15-20 more yrs or 400,000miles. I support ford for doing things the right way . Unfortunately with the economy going down the crapper going into more debt is the most foolish thing one can do .
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Gonzo
Sep. 20, 2012 at 7:54amTake note Obama, they DID build that.
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floridareader
Sep. 20, 2012 at 10:56amAnd they didn’t sell their soul.
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surf0766
Sep. 20, 2012 at 7:41amDefine bailout. Why are they getting almost monthly low interest loans via the Federal Financing Bank?
The same Federal Financing Bank that is propping up the post office.
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Cajun83
Sep. 20, 2012 at 7:38amRobert Hawk, a quick bit of research reveals that Ford Motor Company and The Ford Foundation are no longer connected. They sold their shares long ago. I’ll still buy a Ford over any Government Motors…
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HOOT_OWL
Sep. 20, 2012 at 7:29amThe sad part about this story is, YES they did NOT take any bail-out money.
BUT.
They still moved in the direction that the “progressives” wanted them to.
IT’S NOT ABOUT THE UNITED STATES BEING THE GREATEST NATION ANYMORE .
This corporation like ALL huge corporations are becoming “GLOBAL” .
WORKER OF THE WORLD UNITE..!
Now do you get the picture…?
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hauschild
Sep. 20, 2012 at 8:46amMy biggest disappointment with Ford was when they pulled that kick-ass commercial last winter. I mean, take a freakin’ stand and then let the chips fall where they may – that’s the American way.
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Snowleopard {gallery of cat folks}
Sep. 20, 2012 at 7:27amSo if Ford manages to breach into China, how long until Obama has them sued over unfair trade practices and anything else he can think of to Nationalize them?
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Robert Hawk
Sep. 20, 2012 at 7:20amCareful the Ford foundation is a massive contributor to the Democratic-Marxist party. Therefore all this shine and glory being portrayed by Ford may not be as it appears. What political favors did Ford receive for keeping union employees working?
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