Ford chief seeks help from Toyota

By Micheline Maynard
International Herald Tribune

December 27, 2006

(Detroit) The new chief executive of Ford Motor, which is struggling to
bounce back from one of the worst crises in its history, met last week in
Tokyo with the chairman of Toyota Motor, which is poised to become the
world's biggest auto maker next year.

Ford's chief executive, Alan Mulally, and Mark Fields, the head of Ford
operations for the Americas, attended the meeting last week with Toyota's
chairman, Fujio Cho, and other top Toyota executives, senior officers at
both companies said Tuesday, speaking on the condition of anonymity.

Toyota issued a statement Wednesday describing the meeting as a courtesy
call, but did not say what was discussed.

"We held talks at the request of Ford," the president of Toyota, Katsuaki
Watanabe, said in Nagoya, according to Bloomberg News, citing Kyodo News.

Toyota and Ford officials, as well as the Japanese news media that first
reported on the meeting, indicated that the talks had focused on developing
environmentally friendly technology, like hybrid-electric and hydrogen fuel
systems, as well as on ways that Toyota could help Ford improve its
manufacturing efficiency.

The meeting of Mulally, Fields and Cho follows talks held this summer
between General Motors, Renault of France and Nissan of Japan.

But Ford and Toyota are not believed to have discussed anything that
resembled the joint purchasing or car- production ideas that were the
subject of GM's talks with Renault and Nissan, which ended in October
without any agreement.

Ford and Toyota have an association that stretches back to the 1950s, when
Ford allowed managers from Toyota, which was trying to regroup after World
War II, to study the operations at its giant Rouge complex in Dearborn,
Michigan.

The visits helped Taichi Ohno develop the Toyota production system, which
emphasizes driving out waste, fostering worker involvement and making
continuous improvements on the factory floor.

Toyota also came to Ford in the 1980s when it was looking for an American
partner with which to open its first plant in the United States.

The two companies held brief discussions that could have led to a joint
Ford- Toyota venture to build a version of the midsize Camry for each
company. Instead, Toyota entered into a joint venture with GM that recently
celebrated its 20th anniversary.

Now, Toyota and Ford may work together again as Ford tries to regroup from a
third-quarter loss of $5.8 billion in North America.

Cho, who worked under Ohno and ran Toyota's plant in Georgetown, Kentucky,
before becoming its chief executive and subsequently its chairman, is
concerned about the financial problems facing Ford, an executive at Toyota
said.

"If he can do anything to help them out of this, he would like to," the
executive said.

Analysts have said that Ford probably had little to offer Toyota in terms of
cash or know-how, though Toyota could be seeking access to Ford's hybrid
technology. Rather, they said, Toyota was probably hoping to deflect
criticism from Washington as it seeks to overtake GM.

"If it forges a relationship with Ford, Toyota is probably hoping it will be
seen as a goodwill move," said Chester Dawson, author of "Lexus: The
Relentless Pursuit." He added, "Toyota is wary of inciting trade friction."

James Womack, co-author of "The Machine That Changed The World," which
examines Japanese automakers' American plants, said, "Toyota has nothing to
gain, either politically or in the market, by letting Ford fail fast."

Toyota, the world leader in hybrid- electric cars, already licenses hybrid
technology to Ford, which sells a hybrid version of the Ford Escape, a small
sport utility vehicle.

Ford has its own hybrid program, but it cut back on hybrid development this
year when it decided to place more emphasis on developing flexible fuel
vehicles that can run on gasoline and another type of fuel, like ethanol.

Ford buys parts for its hybrid vehicles from Aisin Seiki, a supplier that is
partly owned by Toyota and part of its global network of parts-making
companies. Ford and Aisin have had disputes over the number of parts Aisin
was willing to make available for Ford vehicles.

Mulally is a student of the Toyota production system and used a form of it
on assembly lines at the Boeing, where he was head of the commercial
airplanes division before joining Ford in September.

Mulally and Fields flew from the United States to Japan and returned
immediately afterward, people with direct knowledge of their trip said
Tuesday. During an interview Friday, Mulally gave no hint that he had made
the trip, which is a round-trip flight lasting about 24 hours.

The long journey reflects the value Mulally places on Ford's relationship
with Toyota, according to a company officer with knowledge of his views.
Only a year ago, Bill Ford Jr., then Ford's chief executive, sounded a more
competitive note.

"My goal is to fight Toyota and everybody else and come out on top," Ford
said during an interview with Time magazine, adding: "I'm not ceding
anything to Toyota. They're an excellent company, and they're a terrific
competitor, but I look forward to taking them on."

Yet another $.02 worth from a proud owner of a 1970 Mustang Mach 1 @
http://community.webshots.com/album/18644819fHAehGJAjt

Goes to show you that our Government isnt looking out for the best interest
of our country and rather the worlds opinion of us, sigh. Imagine if we
impose the same tactics to Japan they do on our products.

Nick


"Grover C. McCoury III" > wrote in message
...
> By Micheline Maynard
> International Herald Tribune
>
> December 27, 2006
>
> (Detroit) The new chief executive of Ford Motor, which is struggling to
> bounce back from one of the worst crises in its history, met last week in
> Tokyo with the chairman of Toyota Motor, which is poised to become the
> world's biggest auto maker next year.
>
> Ford's chief executive, Alan Mulally, and Mark Fields, the head of Ford
> operations for the Americas, attended the meeting last week with Toyota's
> chairman, Fujio Cho, and other top Toyota executives, senior officers at
> both companies said Tuesday, speaking on the condition of anonymity.
>
> Toyota issued a statement Wednesday describing the meeting as a courtesy
> call, but did not say what was discussed.
>
> "We held talks at the request of Ford," the president of Toyota, Katsuaki
> Watanabe, said in Nagoya, according to Bloomberg News, citing Kyodo News.
>
> Toyota and Ford officials, as well as the Japanese news media that first
> reported on the meeting, indicated that the talks had focused on
> developing environmentally friendly technology, like hybrid-electric and
> hydrogen fuel systems, as well as on ways that Toyota could help Ford
> improve its manufacturing efficiency.
>
> The meeting of Mulally, Fields and Cho follows talks held this summer
> between General Motors, Renault of France and Nissan of Japan.
>
> But Ford and Toyota are not believed to have discussed anything that
> resembled the joint purchasing or car- production ideas that were the
> subject of GM's talks with Renault and Nissan, which ended in October
> without any agreement.
>
> Ford and Toyota have an association that stretches back to the 1950s, when
> Ford allowed managers from Toyota, which was trying to regroup after World
> War II, to study the operations at its giant Rouge complex in Dearborn,
> Michigan.
>
> The visits helped Taichi Ohno develop the Toyota production system, which
> emphasizes driving out waste, fostering worker involvement and making
> continuous improvements on the factory floor.
>
> Toyota also came to Ford in the 1980s when it was looking for an American
> partner with which to open its first plant in the United States.
>
> The two companies held brief discussions that could have led to a joint
> Ford- Toyota venture to build a version of the midsize Camry for each
> company. Instead, Toyota entered into a joint venture with GM that
> recently celebrated its 20th anniversary.
>
> Now, Toyota and Ford may work together again as Ford tries to regroup from
> a third-quarter loss of $5.8 billion in North America.
>
> Cho, who worked under Ohno and ran Toyota's plant in Georgetown, Kentucky,
> before becoming its chief executive and subsequently its chairman, is
> concerned about the financial problems facing Ford, an executive at Toyota
> said.
>
> "If he can do anything to help them out of this, he would like to," the
> executive said.
>
> Analysts have said that Ford probably had little to offer Toyota in terms
> of cash or know-how, though Toyota could be seeking access to Ford's
> hybrid technology. Rather, they said, Toyota was probably hoping to
> deflect criticism from Washington as it seeks to overtake GM.
>
> "If it forges a relationship with Ford, Toyota is probably hoping it will
> be seen as a goodwill move," said Chester Dawson, author of "Lexus: The
> Relentless Pursuit." He added, "Toyota is wary of inciting trade
> friction."
>
> James Womack, co-author of "The Machine That Changed The World," which
> examines Japanese automakers' American plants, said, "Toyota has nothing
> to gain, either politically or in the market, by letting Ford fail fast."
>
> Toyota, the world leader in hybrid- electric cars, already licenses hybrid
> technology to Ford, which sells a hybrid version of the Ford Escape, a
> small sport utility vehicle.
>
> Ford has its own hybrid program, but it cut back on hybrid development
> this year when it decided to place more emphasis on developing flexible
> fuel vehicles that can run on gasoline and another type of fuel, like
> ethanol.
>
> Ford buys parts for its hybrid vehicles from Aisin Seiki, a supplier that
> is partly owned by Toyota and part of its global network of parts-making
> companies. Ford and Aisin have had disputes over the number of parts Aisin
> was willing to make available for Ford vehicles.
>
> Mulally is a student of the Toyota production system and used a form of it
> on assembly lines at the Boeing, where he was head of the commercial
> airplanes division before joining Ford in September.
>
> Mulally and Fields flew from the United States to Japan and returned
> immediately afterward, people with direct knowledge of their trip said
> Tuesday. During an interview Friday, Mulally gave no hint that he had made
> the trip, which is a round-trip flight lasting about 24 hours.
>
> The long journey reflects the value Mulally places on Ford's relationship
> with Toyota, according to a company officer with knowledge of his views.
> Only a year ago, Bill Ford Jr., then Ford's chief executive, sounded a
> more competitive note.
>
> "My goal is to fight Toyota and everybody else and come out on top," Ford
> said during an interview with Time magazine, adding: "I'm not ceding
> anything to Toyota. They're an excellent company, and they're a terrific
> competitor, but I look forward to taking them on."
>
> Yet another $.02 worth from a proud owner of a 1970 Mustang Mach 1 @
> http://community.webshots.com/album/18644819fHAehGJAjt
>

In the long run protecting our markets through tariffs etc. will do us
no good. Our economic model isn't built to work this way. If we
penalize imports then the domestic makers will just find a way to
exploit it without improving the quality of their vehicles. Then the
consumer suffers and the domestics dig themselves a deeper hole to crawl
out from. Besides, Toyota is not selling their vehicles for less than
Ford's or GM's counterparts. Most cases they are MORE expensive.
People buy them anyway.

IMO, the main problem facing Ford and GM is the perception of the public
regarding their products. I don't think their vehicles are all that
worse, or any worse for that matter, than the Japanese imports. The
import companies have run circles around them from a marketing aspect.
After the Mustang, what does Ford have to get anyone excited about their
lineup? I can't think of any right off hand.

Here's another reason I think Ford has hit a marketing wall... they have
abandoned vehicle names like the Taurus, Escort, Thunderbird etc. Now
do you think Toyota would decide to kill off the Camry or Celica? Heck
no they wouldn't. They understand the effect those long time model
names have on selling their cars. Ford just tosses their car names into
the garbage every 3-4 years and starts from scratch. IMO, it is beyond
stupid to do this and is costing them heavily in market share.

Nicholas Anthony wrote:
> Goes to show you that our Government isnt looking out for the best interest
> of our country and rather the worlds opinion of us, sigh. Imagine if we
> impose the same tactics to Japan they do on our products.
>
> Nick
>
>
> "Grover C. McCoury III" > wrote in message
> ...
>> By Micheline Maynard
>> International Herald Tribune
>>
>> December 27, 2006
>>
>> (Detroit) The new chief executive of Ford Motor, which is struggling to
>> bounce back from one of the worst crises in its history, met last week in
>> Tokyo with the chairman of Toyota Motor, which is poised to become the
>> world's biggest auto maker next year.
>>
>> Ford's chief executive, Alan Mulally, and Mark Fields, the head of Ford
>> operations for the Americas, attended the meeting last week with Toyota's
>> chairman, Fujio Cho, and other top Toyota executives, senior officers at
>> both companies said Tuesday, speaking on the condition of anonymity.
>>
>> Toyota issued a statement Wednesday describing the meeting as a courtesy
>> call, but did not say what was discussed.
>>
>> "We held talks at the request of Ford," the president of Toyota, Katsuaki
>> Watanabe, said in Nagoya, according to Bloomberg News, citing Kyodo News.
>>
>> Toyota and Ford officials, as well as the Japanese news media that first
>> reported on the meeting, indicated that the talks had focused on
>> developing environmentally friendly technology, like hybrid-electric and
>> hydrogen fuel systems, as well as on ways that Toyota could help Ford
>> improve its manufacturing efficiency.
>>
>> The meeting of Mulally, Fields and Cho follows talks held this summer
>> between General Motors, Renault of France and Nissan of Japan.
>>
>> But Ford and Toyota are not believed to have discussed anything that
>> resembled the joint purchasing or car- production ideas that were the
>> subject of GM's talks with Renault and Nissan, which ended in October
>> without any agreement.
>>
>> Ford and Toyota have an association that stretches back to the 1950s, when
>> Ford allowed managers from Toyota, which was trying to regroup after World
>> War II, to study the operations at its giant Rouge complex in Dearborn,
>> Michigan.
>>
>> The visits helped Taichi Ohno develop the Toyota production system, which
>> emphasizes driving out waste, fostering worker involvement and making
>> continuous improvements on the factory floor.
>>
>> Toyota also came to Ford in the 1980s when it was looking for an American
>> partner with which to open its first plant in the United States.
>>
>> The two companies held brief discussions that could have led to a joint
>> Ford- Toyota venture to build a version of the midsize Camry for each
>> company. Instead, Toyota entered into a joint venture with GM that
>> recently celebrated its 20th anniversary.
>>
>> Now, Toyota and Ford may work together again as Ford tries to regroup from
>> a third-quarter loss of $5.8 billion in North America.
>>
>> Cho, who worked under Ohno and ran Toyota's plant in Georgetown, Kentucky,
>> before becoming its chief executive and subsequently its chairman, is
>> concerned about the financial problems facing Ford, an executive at Toyota
>> said.
>>
>> "If he can do anything to help them out of this, he would like to," the
>> executive said.
>>
>> Analysts have said that Ford probably had little to offer Toyota in terms
>> of cash or know-how, though Toyota could be seeking access to Ford's
>> hybrid technology. Rather, they said, Toyota was probably hoping to
>> deflect criticism from Washington as it seeks to overtake GM.
>>
>> "If it forges a relationship with Ford, Toyota is probably hoping it will
>> be seen as a goodwill move," said Chester Dawson, author of "Lexus: The
>> Relentless Pursuit." He added, "Toyota is wary of inciting trade
>> friction."
>>
>> James Womack, co-author of "The Machine That Changed The World," which
>> examines Japanese automakers' American plants, said, "Toyota has nothing
>> to gain, either politically or in the market, by letting Ford fail fast."
>>
>> Toyota, the world leader in hybrid- electric cars, already licenses hybrid
>> technology to Ford, which sells a hybrid version of the Ford Escape, a
>> small sport utility vehicle.
>>
>> Ford has its own hybrid program, but it cut back on hybrid development
>> this year when it decided to place more emphasis on developing flexible
>> fuel vehicles that can run on gasoline and another type of fuel, like
>> ethanol.
>>
>> Ford buys parts for its hybrid vehicles from Aisin Seiki, a supplier that
>> is partly owned by Toyota and part of its global network of parts-making
>> companies. Ford and Aisin have had disputes over the number of parts Aisin
>> was willing to make available for Ford vehicles.
>>
>> Mulally is a student of the Toyota production system and used a form of it
>> on assembly lines at the Boeing, where he was head of the commercial
>> airplanes division before joining Ford in September.
>>
>> Mulally and Fields flew from the United States to Japan and returned
>> immediately afterward, people with direct knowledge of their trip said
>> Tuesday. During an interview Friday, Mulally gave no hint that he had made
>> the trip, which is a round-trip flight lasting about 24 hours.
>>
>> The long journey reflects the value Mulally places on Ford's relationship
>> with Toyota, according to a company officer with knowledge of his views.
>> Only a year ago, Bill Ford Jr., then Ford's chief executive, sounded a
>> more competitive note.
>>
>> "My goal is to fight Toyota and everybody else and come out on top," Ford
>> said during an interview with Time magazine, adding: "I'm not ceding
>> anything to Toyota. They're an excellent company, and they're a terrific
>> competitor, but I look forward to taking them on."
>>
>> Yet another $.02 worth from a proud owner of a 1970 Mustang Mach 1 @
>> http://community.webshots.com/album/18644819fHAehGJAjt
>>
>
>

"Michael Johnson" > wrote in message
...
> In the long run protecting our markets through tariffs etc. will do us no
> good. Our economic model isn't built to work this way. If we penalize
> imports then the domestic makers will just find a way to exploit it
> without improving the quality of their vehicles. Then the consumer
> suffers and the domestics dig themselves a deeper hole to crawl out from.
> Besides, Toyota is not selling their vehicles for less than Ford's or GM's
> counterparts. Most cases they are MORE expensive. People buy them anyway.

I disagree as there is competition from within that would improve the
market. The real reason we slipped was do to OPEC and oil. American
manufacturers had to come up with something more fuel efficient, smaller,
and better emissions. I dont recall hearing complaints of American cars in
the 60's or early 70's. It was only until we were forced to do something we
were not familiar with and had to adapt to something the Japanese and many
European makers already had been doing.


> IMO, the main problem facing Ford and GM is the perception of the public
> regarding their products. I don't think their vehicles are all that
> worse, or any worse for that matter, than the Japanese imports. The
> import companies have run circles around them from a marketing aspect.
> After the Mustang, what does Ford have to get anyone excited about their
> lineup? I can't think of any right off hand.

I agree they need to improve their image or if they try to re-invent it do
it in a way that you dont lose your base customers by what you are touching
on next paragraph.

>
> Here's another reason I think Ford has hit a marketing wall... they have
> abandoned vehicle names like the Taurus, Escort, Thunderbird etc. Now do
> you think Toyota would decide to kill off the Camry or Celica? Heck no
> they wouldn't. They understand the effect those long time model names
> have on selling their cars. Ford just tosses their car names into the
> garbage every 3-4 years and starts from scratch. IMO, it is beyond stupid
> to do this and is costing them heavily in market share.

Amen! How can you expect loyalty if you keep changing your identity? The
Ford Taurus had an awesome reputation and was a top seller. Why get rid of
the nameplate when it is doing well? Also if you are going to bring a 4 door
car based on the Mustang do us all a favor use it under a Mercury name so
they can get some recognition. Perhaps bring back a name like the Cougar
that everyone loved. Great alternative if people are sick of seeing so many
Mustangs or if they expect a family and need more room.

Nick

Nicholas Anthony wrote:
> "Michael Johnson" > wrote in message
> ...
>> In the long run protecting our markets through tariffs etc. will do us no
>> good. Our economic model isn't built to work this way. If we penalize
>> imports then the domestic makers will just find a way to exploit it
>> without improving the quality of their vehicles. Then the consumer
>> suffers and the domestics dig themselves a deeper hole to crawl out from.
>> Besides, Toyota is not selling their vehicles for less than Ford's or GM's
>> counterparts. Most cases they are MORE expensive. People buy them anyway.
>
> I disagree as there is competition from within that would improve the
> market. The real reason we slipped was do to OPEC and oil. American
> manufacturers had to come up with something more fuel efficient, smaller,
> and better emissions. I dont recall hearing complaints of American cars in
> the 60's or early 70's. It was only until we were forced to do something we
> were not familiar with and had to adapt to something the Japanese and many
> European makers already had been doing.

The problem is that the domestics aren't making cars that the public
wants in their driveways. If the Japanese can make desirable cars then
why can't Ford and GM? Protecting their markets will not force them to
make better cars. In fact, it will have the opposite effect. There
won't be any pressure on them to make better vehicles.

Detroit had no real competition in the 50s, 60s and 70s so how would any
of us know to complain? We had only one point of reference... theirs.
Now we have a choice and many of us are choosing the imports.

>> IMO, the main problem facing Ford and GM is the perception of the public
>> regarding their products. I don't think their vehicles are all that
>> worse, or any worse for that matter, than the Japanese imports. The
>> import companies have run circles around them from a marketing aspect.
>> After the Mustang, what does Ford have to get anyone excited about their
>> lineup? I can't think of any right off hand.
>
> I agree they need to improve their image or if they try to re-invent it do
> it in a way that you dont lose your base customers by what you are touching
> on next paragraph.

Ford and GM need to concentrate on making good vehicles. Ford has spent
too much money buying other brands (Volvo, Aston-Martin, Jaguar etc.)
and not nearly enough on vehicle development within the
Ford/Lincoln/Mercury moniker. Their are now buying hybrid technology
from Toyota! They should be developing their own technology and selling
to others.

>> Here's another reason I think Ford has hit a marketing wall... they have
>> abandoned vehicle names like the Taurus, Escort, Thunderbird etc. Now do
>> you think Toyota would decide to kill off the Camry or Celica? Heck no
>> they wouldn't. They understand the effect those long time model names
>> have on selling their cars. Ford just tosses their car names into the
>> garbage every 3-4 years and starts from scratch. IMO, it is beyond stupid
>> to do this and is costing them heavily in market share.
>
> Amen! How can you expect loyalty if you keep changing your identity? The
> Ford Taurus had an awesome reputation and was a top seller. Why get rid of
> the nameplate when it is doing well? Also if you are going to bring a 4 door
> car based on the Mustang do us all a favor use it under a Mercury name so
> they can get some recognition. Perhaps bring back a name like the Cougar
> that everyone loved. Great alternative if people are sick of seeing so many
> Mustangs or if they expect a family and need more room.
>
> Nick
>
>

GM sell more cars than any import brand, they just do not have the same name
on the grill.



mike

..
"Michael Johnson, PE" > wrote in message

> The problem is that the domestics aren't making cars that the public wants
> in their driveways.
>>
>> Nick

Probbly just wanted to see if he could
get a good deal on an '07 Solara <G>

Celica is no longer sold here...

Michael Johnson wrote:

> Here's another reason I think Ford has hit a marketing wall... they
> have abandoned vehicle names like the Taurus, Escort, Thunderbird
> etc. Now do you think Toyota would decide to kill off the Camry or
> Celica? Heck no they wouldn't. They understand the effect those long
> time model names have on selling their cars. Ford just tosses their
> car names into the garbage every 3-4 years and starts from scratch.
> IMO, it is beyond stupid to do this and is costing them heavily in
> market share.
>

In article >, Nicholas Anthony wrote:
> Goes to show you that our Government isnt looking out for the best interest
> of our country and rather the worlds opinion of us, sigh. Imagine if we
> impose the same tactics to Japan they do on our products.

Japan isn't a problem IMO. Simply make a better product, that's all
that's needed.

"Brent P" > wrote in message
. ..
> In article >, Nicholas Anthony wrote:
> > Goes to show you that our Government isnt looking out for the best
interest
> > of our country and rather the worlds opinion of us, sigh. Imagine if we
> > impose the same tactics to Japan they do on our products.
>
> Japan isn't a problem IMO. Simply make a better product, that's all
> that's needed.
>

One post, as I have hashed this out too many times in the past. Ford and
GM are as
good or better than anything Nissan, Toyota, Honda, or any of their
subsidiaries produce. They are
a 100 fold better than the junk Hyundai, Kia, Mazda, or Mitsubishi put out.

All one has to do is research the number and types of recalls the asians
have been having for almost 2 decades
vrs what Ford and GM have been issuing.
Of course researching that is hard these days, since AllData and Mitchell
both pulled the lists for Asian cars
this year. I wonder why they did that.

Whitelightning