Ford Motor Co, which is celebrating its 100th anniversary this weekend, has been talking about its founder Henry Ford, the historical significance of the Model T and Mustang and how it's ready for its second hundred years.
More recent history though, including US$6.43 billion in net losses the past two years, has stolen some attention from the festivities. Ford wants to generate US$7 billion in annual pretax profits by 2005.
Chief executive officer William Clay Ford Jr. spoke on Thursday at a new plant near the company's Dearborn, Michigan, headquarters. Rather than the anniversary, Ford was asked by reporters about an analyst's report that Ford or rival General Motors Corp may need to file for bankruptcy during the next several years and about his own enthusiasm for the CEO job.
PHOTO: REUTERS
"It's crazy," Bill Ford said of the idea of bankruptcy. UBS Warburg analyst Saul Rubin issued a report on May 29 where he raised that possibility.
As for his enthusiasm, Ford said: "This what gets me out of bed every morning. This reluctant CEO stuff is for the birds."
The world's second-largest automaker's birthday, which officially is today, comes as the company is in the midst of a plan to close plants, cut jobs and introduce new models so it can generate US$7 billion in pretax profits by 2005.
The automaker constructed tents and stages around its Dearborn complex and sold more than 90,000 tickets to the public.
Owners of Model Ts, Mustangs and other historic models brought their vehicles and put them on display. Ford also scheduled entertainment events, although it had to cancel an Earth, Wind & Fire concert on Friday night because the grounds were too wet from rain on Thursday.
Ford also wanted to talk about some aspects of its future.
It displayed the first three GT sports cars, which are modeled after GT40 race cars of the 1960s when Ford won the "24 Hours of LeMans" auto race. Bill Ford, Henry Ford's great-grandson, approved the new model last February, a few months after he became CEO in October 2001. The cars go into production next year.
Executives say the car, which will sell for more than US$100,000, will help the automaker's image with consumers. The company has said it expects to make about 1,000 GTs a year.
"The GT will be the lightning rod to bring customers into the showroom," vice president of advanced product creation, told reporters during a Friday briefing.
Meanwhile, Ford's joint venture in China, which started producing cars in January, will become profitable during the fourth quarter, executive vice president David Thursfield said. Thursfield oversees Ford's international operations and worldwide purchasing.
"Within 10 months of opening the plant, we'll be profitable in China and that's amazing," Thursfield said at a lunch at Ford headquarters in Dearborn, Michigan. Thursfield didn't provide specific figures. Changan Ford Automobile Co (
"We're sold out through the end of this year," Thursfield said of Changan Ford. The automaker plans to build about 20,000 cars this year and 50,000 next year. Ford and Changan invested about US$49 million each in the project.
Ford is seeking to expand its presence in China to catch up with rivals. Detroit-based General Motors sold 110,000 Shanghai-made sedans and minivans last year, almost double 2001 sales.
Wolfsburg, Germany-based Volkswagen sold more than 500,000 cars in China last year, and counts the country as its second-largest market after its home country.
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