With the problems Ford has been going through, Ford CEO Alan Mulally has more problems that the struggling company will have to face. He still hasn’t proved that he can turn the the in trouble Ford around and he is not winning many supporters behind him.
Mulally, hired by then-chairman and CEO Bill Ford on Sept. 5, was brought in to turn around a company that was unprepared when rising gasoline prices pushed people away from its trucks and sport utility vehicles. Mulally did win support when he lined up the 23.4 billion line of credit by mortgaging Ford’s factories and even its blue oval logo. However the good news didn’t last forever as Ford had it’s worst annual lost in its history for 2006 at 12.6 billion.
The Ford’s U.S. market share has dropped from 16.5 percent the month Mulally arrived to 13.7 percent last month but that is not enough to call it a big improvement. The Detroit Three have said their labor expenses, including wages, pensions and health care for active and retired workers, are about $25 per hour higher than Toyota's. That is just one benefit that they are trying to use to compete with foreign automakers. The slow progress will get better with continue forward movement of cost cutting.
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