Against the backdrop of the debt crisis in Europe, the Ford concern predicts annual losses of $ 1 billion. The crisis may drag on for five years, the auto company predicts. In this regard, the concern may close two plants and is revising its development strategy. The analyst does not exclude that negative trends in Europe may affect Russia as well, but on the whole he gives a favorable forecast.
One of the world's largest automakers, the American company Ford has reeled from the European debt crisis. According to the company's forecasts, its annual losses in Europe will exceed $ 1 billion. In this regard, Ford intends to take decisive steps to remedy the situation. This is reported by Bloomberg.
“Our results in Europe over the past 12 months are unacceptable, and we must address this issue,” said Ford Europe CFO Stuart Rowley at an auto conference in New York. "We are looking at our plan and will cover all aspects of our business, looking at structural costs, our product range and the brand itself."
Analysts, including Adam Jonas of Morgan Stanley's bank, believe Ford will be forced to close one or more factories in Europe. According to the financial institution, Ford currently uses only about 63% of its European production capacity.
In the second quarter of this year, the automaker's net profit fell 57% year-on-year to $ 1.04 billion, while operating losses in Europe were $ 404 million.
To balance market demand with production capacity, Ford is forced to consider closing some of its European factories. In particular, the possibility of curtailing production in Southampton, England and Ghent, Belgium, is being actively discussed.
“Costs alone can't get us back on track,” Rowley said. - Take a look at our business in North America... This is a good guideline. Here we continue to invest in our production plan. "
The ongoing economic crisis in Europe forced the company's management to take a fresh look at the future prospects. Ford lowered its full-year profit forecast in July. The company admitted that they no longer expect it to be able to reach the level of 2011, when the operating profit (before income tax and interest on borrowed funds. - Gazeta.Ru) of the company amounted to $ 8.8 billion.
Ford CFO Bob Shanks noted at the same conference that the economic crisis in Europe, which accounts for a quarter of the company's total revenue, was deeper than expected at the beginning of the year. In his opinion, the situation will remain difficult for at least five years.
The company's European sales fell 10% in the first half of 2012. Rowley said the troubles in Europe, where total sales have fallen 22% since 2007, are not just cyclical downturns. Cost structure is to blame for losses of all automakers automotive industry in Europe, which includes production facilities.
“We see the challenge in becoming more constructive, and we must view our future plans in this context and develop them accordingly,” Rowley said.
In North America, which the company's management calls to be equal, the company is doing really well. Operating income for the second quarter rose to $ 2.01 billion, up $ 200 million from last year.
Ford is doing well in Russia as well. In the second quarter of this year, more than 36 thousand cars were sold in the country, which corresponds to the indicators of the pre-crisis 2008.
Soon, Ford plans to start assembling four new models in Russia - Kuga, S-MAX, Galaxy and Explorer, and then sales are expected to become even more tangible.
In the meantime, additional headache the leadership of the auto giant is creating debts. At the end of 2006, Ford borrowed about $ 23.4 billion, pledging most of its main assets, including its headquarters and its own brand. Thanks to this, during the financial crisis, the company, unlike its main competitors Chrysler and General Motors, managed to stay afloat without resorting to the help of the US government and without going through bankruptcy proceedings. In May of this year, the head of Ford Alan Mulally said that the company had already paid out $ 21 billion, in the same month, having managed to regain the right to manage its own brand.
According to independent car analyst Ivan Bonchev, Ford's European problems are unlikely to affect the situation in Russia. “Unlike Europe, our car sales are showing steady growth, so all companies, including Ford, which has production facilities here, are doing well. I do not see any direct links between the European problems of the company and their prospects in Russia, ”he said.
Nevertheless, Bonchev does not rule out that negative trends in Europe may affect Russia as well..
“The Russian branch is organizationally subordinate to the European subdivision, and therefore, as on a successful one, some additional loadsto somehow redistribute profits. Another factor is Russia's accession to the WTO with a change in duties and at the same time the appearance from September recycling fees... Many believe that this can cause a rise in prices and, accordingly, slow down the market. But it seems to me that the overall situation will remain favorable, ”the analyst said.
How Henry Ford worked
Introduction
This material is presented on the basis of the research work of the economists Mr. Sergey Evgenievich Doroshenko and Mrs. Galina Petrovna Samarina, leaders of the Noosphere Foundation, who, using the example of the practical activities of the famous American magnate Henry Ford, scientific analysis of the world economy, foresaw the world financial and economic crisis, its consequences and in accessible language explained its causes and methods for a worthy way out of it. At the same time, for the first time, they substantiated the need to create and strengthen three components of the economic and social stability of society: states, business and trade unions... In this brochure, we will try to present to your attention the essence of the arguments of Russian scientists and offer a parity dialogue on finding a way out of the economic crisis, eliminating povertyas the main benefit of our society ...
A few words about the Man of Action
Henry Ford, (1863-1947) - American industrialist, owner of automobile factories. Its slogan was "a car for everyone" - the Ford plant produced the most cheap cars at the beginning of the automotive era. Ford Motor Company exists to this day. Henry Ford also known for the first time he began to use the industrial conveyor. Contrary to popular misconception, the conveyor was introduced before, but Henry Ford created the first commercially successful line. Ford's book My Life, My Achievements is a classic scientific organization of labor.
Everything is very simple... He raised minimum wages in their factories 5 times compared to other sectors of the American economy. To understand how high this minimum wage was, let's give a simple example. Any employee, having just joined G. Ford at work and received only the minimum wage in 1914-1916, could purchase his famous model “T” car in 3 months of work. Along with the promotion, he reduced the working day from ten to eight hours, and the working week to 48 working hours.
Every employee G. Ford received not only wages, but also his share of the profits. Those of them who, thanks to the growth of savings, which is a direct consequence of the increase in wages, invested them in the shares of G. Ford's enterprises, had even higher incomes.
Consider another important socio-economic factor in the activity of any enterprise - staff turnover - which also affects costs. G. Ford notes that, thanks to the increase in wages, there were significantly reduced costsassociated with staff turnover.
So, in 1914, when the first unified socio-economic plan for the development of the team came into force, “... we had 14,000 employees, with such a number, the turnover of personnel would have been about 50 thousand people annually ... In 1915, we had to hire only 6508 people, and most of them were invited because our company expanded. With the old movement of the workers and our new needs, we would now be forced to hire about 200,000 annually, which would be almost impossible ... "
At the same time, he draws attention to other related socio-economic factors, such as the cost of training and adaptation new employees. In particular, he writes: “... Even with the extremely short study time required to study almost all of our operations, it would still not be possible to hire new staff daily, weekly or monthly. For, although our workers, for the most part, after two or three days are already able to perform satisfactory work at a satisfactory pace, they still work better only after a year's experience than at the beginning ... "
Let's sum up... G. Ford first introduced motivational criterion, according to which he estimated the integral labor factor at 90%, organizational and technological factor - only 10%. He developed the labor factor, external and internal motivation of personnel in the following directions.
At first, with the help of a high minimum wage, which allowed each member of the team to work with interest at their workplace.
Secondly, in order to increase the motivation of personnel in the performance of the entire company as a whole, since 1900, they introduced remuneration as a share of the participation of each employee in the income of the entire company.
Thirdly, he encouraged workers to invest their savings in production through the purchase of shares or direct loans to G. Ford plants.
Fourthly, first laid the foundations for the future of the famous Japanese quality circles.
Fifth, economically stimulated the rationalization movement and the initiative of each member of the team, not only at his workplace, but also encouraged direct contacts between any employee and top managers, bypassing intermediate links.
At sixth, economically encouraged the development of related professions and career growth.
Seventh, economically stimulated professional growth and staff rotation.
Eighth, he equalized the wages of disabled and healthy people.
NinthConsidering that the minimum wage allowed an employee (man) to painlessly support his family, he economically stimulated the voluntary dismissal of employees' wives so that they would devote more time to their family and children.
Tenth, he introduced medical care, and social, pension insurance in case of injury or injury at work.
EleventhG. Ford economically stimulated not only training in related professions for each employee, but also studies at school and college.
Twelfth, he first, long before the Japanese, introduced the principle of delivery on time for suppliers. Let us voice his approach: "If the transport were completely reorganized, so that one could count on a uniform supply of materials, it would be unnecessary to burden oneself with a warehouse."
A deep understanding of the role of labor motivation allowed G. Ford, for the first time in the world in 1910-1913. develop five year plan the socio-economic development of the team of the entire company, which entered into force on January 12, 1914. Explaining the need for this plan, G. Ford writes that we introduced this plan not because we decided to take care of our staff "by arranging the distribution of benefits", but because "High rates (wages) are the most profitable business principle." Moreover, he focuses the reader's attention not on his organizational and technological developments, but on high wages, which, in his opinion, is the only most profitable. He believed that his main merit was not the conveyor technologies he developed, but the company's policy of high income and wages.
He anticipated and laid down the practical foundations of the theory of human capital, developed later by Nobel laureates Theodore W. Schultz and Gary Becker. It was this discovery that made him one of the most in the world.
In his book, a common thread runs the thought of why other entrepreneurs cannot understand this simple truth that only by sharing income with your staff you can get rich. The plan was based on the personal interests of each employee of the company. In practice, according to the majority of Americans, G. Ford laid the socio-economic foundations of today's America. If the prices of goods are higher than the income of the people, then the prices must be adjusted to the income. Typically, the business cycle begins with production and ends with consumption. But when the consumer is unwilling to buy what the manufacturer is selling, or does not have enough money, the manufacturer blames the consumer and claims that things are going badly, not realizing that he, with his complaints, harnesses the horses behind the cart.
It should be clarified what G. Ford understood by household income. This is not only staff salaries, but according to G. Ford it is also "... profit sharing ..." of staff, which was first introduced by him back in 1900, as well as social benefits, income received by staff from investing savings in shares of company G . Ford.
He was well versed in the fact that the growth of savings of employees of companies, low prices for cars, their high quality, implement his policy: "... Beware of deteriorating the product, beware of lowering wages and robbing the public." All this allowed him, through the credit partnerships he created, to attract loans and investments inexpensive for those times. Thus, he proved in practice long before J.M. Keynes his theoretical calculations, set forth in the book "General theory of employment, interest and money" (1936,. Per. 1948).
G. Ford understood that: “With ... low wages, savings cannot be achieved. Lowering wages is a stupid financial policy, because at the same time, purchasing power also decreases ... "He practically brought out economic dependence: high wages increase aggregate demand and savings, which increase investment and reduce their cost, which in turn allows to further reduce prices for products, stimulating further demand, etc.
Sales growth was achieved almost in the second year (1915) after the adoption of the first five-year socio-economic development plan for the team. Please note that he was ahead of everyone by decades. Attracting low-cost investment and loans allowed him to further reduce production costs and lower car prices, stimulating further growth in aggregate demand.
G. Ford in the book proves that the only sources inflation was the runaway monetary emission of the Fed, governments, illegal lending to the financial system and, the encouragement of speculative activity and speculative financial pyramids. Only the Great Depression and bank holidays made the society think about and legally prohibit this activity of the authorities, the Federal Reserve System and business.
In our opinion, the harsh statements of G. Ford in relation to fair: "... speculation with finished products has nothing to do with business - it means nothing more and nothing less than a more decent form of theft ..."
Even more critically, he assesses the activities of bankers, the Federal Reserve, the US government and legislators: “The help will not come from Washington, but from ourselves ... We can help the government, not the government to us. The promises cost the government nothing, but it is unable to fulfill them. True, governments can juggle currency as they did in.
As long as we expect from legislation that it will heal poverty and eliminate privileges from the world, we are destined to contemplate how poverty grows and privileges multiply ... Government is only a servant of the people, and should always remain so. As soon as the people become an appendage to the government, the law of retribution comes into force, for such a ratio is unnatural, immoral and inhuman ... "
ANTI-CRISIS MANAGEMENT IN THE SECTIONHR-MANAGEMENT BY THE EXAMPLE OF THE COMPANY FORD
Bogunets Ekaterina Alekseevna
4th year student of the specialty "Personnel Management" of the Moscow State University of Economics, Statistics and Informatics (MESI), Russian Federation, Moscow
Bocharov Sergey Alexandrovich
scientific adviser, associate professor of the department. OMiP, RF, Moscow
In the course of its functioning, a company can be both in stable development and deviate from it. Any organization is faced with a crisis in its activities, but the feature of the crisis is individual for each enterprise - this is due to an individual approach to decision-making. In other words, organizations that are identical in structure and size build strategic crisis management in different ways.
External factors determine the corresponding situation in the market, thereby setting the parameters of competition and determining the status and position of the company, its economic efficiency. In the post-industrial society, trade marks and brands began to play a significant role, one of the structural elements of which is the HR brand. Business reputation is taking the first place today, its role in the capitalization of companies is constantly growing. That is why the reputational crisis is one of the most painful for the company. It should also be noted that one of the conditions for the development of the crisis is the human factor - low qualifications of the management team can lead to negative consequences decisions taken, eg.
It should not be denied that the personnel service of the enterprise is assigned an important role in anti-crisis management. In other words, the company needs integrated management, in which the personnel service as a structural unit of a unified system cannot be isolated from the general goals set. This direction of management cannot but develop, since many tools can become a "habit" and not be perceived by personnel. For example, a benefit system that remains unchanged over a long period generates a downward trend in the level of motivation and incentives.
From the point of view of HR management, according to the author, a crisis is a phenomenon aimed at breaking the old one and stimulating an innovative approach to managing an organization.
Let's consider the classification of crises in the context of HR management:
· in the structure of relations in the socio-economic system, the nature of the crisis it is social - this is one of those thresholds, the balance on which the HR department of the company can change (dismissal, personnel rotation, revision of personnel qualifications, etc.). The HR department is to some extent a link between the conflicting parties (for example, on the issue of promotion, the staffing table can be adjusted);
· in scope, scope this is a sectoral crisis of the "old" personnel policy (the tools used must not only be used, but also developed, combined, otherwise they will lose their value and uniqueness), the need to form a new HR brand, etc.
· in the nature of the crisis it is partial - covering a certain area. For example, there is a sharp shortage of highly qualified specialists in the labor market (from the point of view of forecasting, the emergence of a crisis situation can be both unexpected (subjective managerial error against the background of stress) and predictable).
The first classification can be characterized by the following example: the company's management, following the conditions of competition and global trends, very often imposes on its employees the use of certain programs that a person does not like to use. Again, the level of education of fairly experienced employees does not always make it easy to master such innovations, which again increases employee dissatisfaction and changes the situation in the team. You can also add private access to social networks here. For some structures, such a measure is justified, but there are institutions in which given view communication is very efficient and convenient than using the same e-mail. These technologies were discussed at the Russian HR Week 2014, but this is a separate area for thought.
The initial situation is that people get used to using some technical means... Further, from the complexity of implementation, that is, from the difficulty of mastering innovations by employees, employees begin to hate their work and the psychological, emotional state changes to breakdowns and conflicts. Moreover, often the reasons for conflicts are banal pride that others did not succeed, unlike you. HR contains a number of tools that can help prevent this feature of the crisis - for example, training, mentoring, etc.
I would like to give an example (Rusklimat company), which faced the asymmetry of information on the labor market. The job description was published quite attractively, but the result was the opposite. Of course, a special relationship based on subordination is established between the bosses and ordinary employees, but abuse of power leads to a decrease in the efficiency of employees, and, accordingly, significantly changes organizational behavior in the company (word of mouth has not yet been canceled).
The result, after clarifying the real situation, is negative feedback and scaring away candidates. I would like to note that a psychological crisis is a very important crisis threshold in an organization. The communication barrier, as one example, is the main root cause of this phenomenon - in my opinion, the most common example is a poor-quality organization internal communication between the levels of the company (inaccessibility of top management).
Another crisis in the company in question was the fact that, despite the newly created positive image of the company's status (the company is large, for example, it develops in the market and is heard), it is not possible to attract employees, because there is information that the head of the company was tried. Then the situation in the company was not the best, but this negative opinion still cannot be corrected.
If we consider the stages of the course of the crisis, then we can also trace the need for effective functioning of HR management:
1. It is believed that one of the symptoms of the crisis are failures in the management system and the obsolescence of technologies for the implementation of activities. But the beginning of a crisis line with small fluctuations in conventional indicators is almost impossible to predict - fluctuations in economic systems are a natural process. Therefore, the question of continuous monitoring and development arises. The situation on the labor market, like the entire economy, is in a dynamic state, therefore it is very important to maintain a stable reputation of the company's personnel;
2. At this stage typical characteristics an increase in staff turnover and a violation of the positive socio-psychological climate are considered. On the one hand, the way out of the crisis is effective personnel management, because transparency of what is happening can transfer the burden of anti-crisis management to each employee through the existing reliable corporate culture and a positive HR brand;
3. This stage is characterized by mass layoffs, shorter working hours, reduced payments to staff, etc. - all these decisions are within the competence of the HR service.
Anti-crisis management is the activity of making managerial decisions and implementing measures to diagnose, prevent, neutralize and overcome crisis phenomena and their causes at all levels of the economy, to prevent them in the future.
There is no standard set of approaches for such a policy (a clear example of this is the variety of policies for building a corporate culture). The task of strategic planning in HR is not only to analyze the activities of the enterprise, to select qualified personnel, but also to monitor the labor market. Unemployment rates can grow for various reasons, as well as have a huge impact on the existence of the enterprise (the lack of highly qualified personnel will not allow the company to take a worthy competitive position, and training costs can bankrupt it).
Let's consider a classic example of the crisis period - 2008. Many companies faced financial crash in the first place, which led to a crisis in the labor market. The troika did not escape this fate car manufacturers: GM, Chrysler and Ford. Consider the latter company.
In 2008, the company faced the following economic situation:
Picture 1. SWOT -analysis for the company Ford for 2008
We will add personnel risks to the above SWOT analysis as a consequence:
· Business restructuring will affect the structure of the workforce, which can lead to massive layoffs and undermine the credibility of the company as an employer, as well as affect the corporate culture (word of mouth, for example);
· The rise in fuel prices and the refusal of public investments will affect the structure of expenses, and, accordingly, the payroll;
· Conflict between management and trade unions can affect the company's reputation as an employer and lead to strikes, paralyze the production process and undermine the principles of corporate culture.
I would like to note that the company on the eve of the global crisis faced a number of personnel problems - a strike of workers at the plant demanding a 30% increase in wages, although the demands of the trade union were more moderate (14-20%). As a result, the management decided to increase wages by 15%, but the company lost the opportunity to actively finance the expanded social package. But the conflict with the trade unions was resolved.
In 2008, following a rejection of government investment, the company came close to the risk of massive layoffs of 12,000 employees and serious market losses. According to the analysis, these risks were analyzed earlier, so the company took a number of measures:
· Resolved conflicts with trade unions - in relation to the risk event, Ford used pre-event measures, since already in the SWOT analysis many of the risks were predictable;
· Refusal to pay bonuses, reduction of management remuneration, refusal of part of shareholders' dividends - all these measures are taken after taking the risk;
· Early retirement.
According to the author, it is possible to offer another outplacement, which is so popular for international companies, to develop a system of non-material motivation - in the future, the children of employees can be trained in the company with further employment. Such a measure meets one of the urgent needs of workers - to educate their children and promote their successful employment.
Ford saw the prospect of rapid sales of its cars in the Russian market, so let's look at the company's personnel policy regarding Russian factories, which significantly influenced the policy in the home market.
Having studied the company's policy in Russia, we can conclude that Ford has competently built its relations with government agencies, focusing on the urgent problems of the Russian labor market:
· To implement the principle of transparency (especially in times of crisis), the company began to publish a firm magazine "Ford", the readers of which had the opportunity to receive first-hand information about the company, its plans, new models, etc .;
Creation and maintenance of equal business conditions for all markets where the company operates: "Companies invest, create jobs (only about 3,000 people work at the Ford plant in Vsevolozhsk, not counting indirect jobs such as dealerships and service centers, etc.), regularly pay taxes to various budgets";
Reduction of working hours, partial suspension of the conveyor: "In accordance with the Labor Code of the Russian Federation, Ford will pay 2/3 of the wages to employees who will be in forced downtime."
I would like to draw your attention to the fact that a massive layoff would not have saved the company. Of course, this is a reduction in payroll expenses, but a negative reputation as an employer in the labor market. The author considers the exit of the company to be the best economic move - expanding the dealer network in Russia, where sales exceeded expectations (“In 2008, Ford opened 13 new dealerships. In addition, 14 more dealers completed the construction of new dealerships or completed the reconstruction of existing ones. Sub-dealers and branches of existing dealers. The dealer network of Ford in Russia has 143 points of sale and service in 91 cities of Russia. During 2008, the Ford Technical Center conducted 156 trainings for 3,131 employees of Ford dealerships. 42 employees of dealerships received the highest degree of Master qualification Technician "). The company was refused by the US government, but the company sold the same funds from dealers throughout Russia (because the "focus" model was considered the world leader in sales) and saved its staff in the home market. I would like to add that the company presented the following requirements for dealers (the emphasis is on the formation of a corporate culture): “The dealer needs serious investments in the construction of brand centers decorated in the corporate style of Ford, which have a showroom, a warehouse of spare parts and a service zone, and serious attention is paid to training, development of personnel for sales and service of Ford vehicles. "
The prices for customs also increased, from which the company decided to switch to local production of auto parts and assembly, thereby supporting local manufacturers (but before this period, the load was on american factorieswhere jobs remained relevant in accordance with the growing demand). The company managed to match costs and redistribute the workload, according to which it managed to retain the lion's share of staff.
Table 1.
The company's revenue in the Russian market in 2008
|
model |
sales |
price |
proceeds |
|
Explorer |
|||
|
Total |
Let's calculate some taxes and get the company's profit:
10% to the dealer 7586187700 rubles;
· Income tax 13655137860 rubles;
VAT - 10414935655.93 rubles;
· Payroll expenses - 90,000,000 rubles with an average earnings of 30,000 rubles and a staff of 3,000 people;
· Insurance premiums - RUB 27,000,000.
As a result, the company's profit will amount to 44088615784 rubles. If, given the average hourly wage in the United States ($ 16.14), we calculate the monthly cost per worker, then we get about $ 3776.76. With a rate of 35 rubles per dollar, earnings in rubles are 132186.6 rubles. Such a profit would allow for the hiring of about 333,533 people in the home market. According to the author, this profit has recouped the company's personnel costs in the home market and reduced personnel costs at Ford dealerships.
At the end of 2008, the company nevertheless carried out some staff reductions, but was able to stabilize its position at home by cutting production, launching 4 new models, also using reduced working hours and maintaining its reputation as a responsible employer. By expanding the dealer network, the company has reduced personnel costs in Russia.
Summing up, it should be noted that in Ford's policy, one of the key roles was played by the HR department, which proposed the appropriate anti-crisis management methods, formed the corporate culture and the consciousness of personnel in the need for adherence to the company's principles, developed a system for reducing labor costs and contributed to the expansion of jobs in russian plant companies, which once again confirms the role of the HR department in crisis management.
In a market economy, there is always a probability of a crisis (since this is part of the life cycle of an organization), therefore, any management to a certain extent should be anti-crisis or becomes so as the organization enters a crisis development zone. The success of such a policy lies in the fact that the company should form its strategy not only at the accounting level, but also contact the HR department, which is able to form the responsibility of personnel and avoid mass negativity.
List of references:
1.Vesnin V.R., Danchenok L.A., Yurieva T.V. Crisis management: modern strategies and technologies // 2012.
2.Komarov A., Komarov E. Crisis and anti-crisis managers // Project management. 1999. No. 2.
3. [Electronic resource] - Access mode. - URL: www.ford.ru - the official website of FORD.
4. [Electronic resource] - Access mode. - URL: http://www.rbcdaily.ru - the official website of the RBC newspaper.
Here, although February 2010 is in the yard, detailed statistics for the past financial year are only emerging. To be honest, in general it does not please, most companies are in the red, “the crisis has not spared it ...” probably became a catch phrase in the past 2009. Although there are rainbow moments, the first snowdrops, harbingers of recovery automotive market... The Ford company is one of such harbingers, the car manufacturer whose business has gone to a plus, and even one of the largest. The Ford concern ended fiscal 2009 with a profit of $ 2.7 billion.
How many? Yes, I was not mistaken, although, like you, I didn’t believe it at once. It was especially hard to believe against the background of reports from the giants of the global automotive industry GM and Chrysler. At the end of 2009, Ford's net profit was $ 2.7 billion, against the background of 2008 ended with a loss of $ 14.8 billion. Note that in 2009 year Ford made a profit for the first time in four years. The positive financial results were achieved thanks to increased sales, job losses, lower costs of developing new machines, manufacturing and building new factories, as well as due to the restructuring of most of the debts. For example, in April 2009 alone, Ford managed to reduce its debt to creditors by almost $ 10 billion, which was 38% of the total debt of the concern. In the fourth quarter of the reporting fiscal year, Ford's revenue was $ 868 million, while in the same period in 2008 the concern lost $ 5.9 billion. It is worth noting that in total, in the period from 2006 to 2008, the American concern lost about $ 30 billion. Ford now hopes that this year will also be financially successful for the company. Ford's total 2009 revenue was $ 11.8 billion.
Let's try to understand what the Ford administration has done, what is the essence of success?
According to experts, the company's success has several components. The main thing is the well-coordinated work in the harsh conditions of the crisis of all departments, the timeliness of making adequate decisions to change the market environment, and reducing production costs. How much has been done over the past year! What is only banking ford program Credit, which helped increase the attractiveness of buying a Ford car, bringing in $ 1.3 billion. By the way, the company's share in the American market grew by 1.1% and rose to 15.3%. In 2009, Ford did something that he did not dare to do for a long time, sold Jaguar, Land Rover, Volvo, which did not bring anything but losses.
Rolant de Waard, vice president of the European branch of the Ford concern, arrived in Moscow for literally a few hours at the end of November, and the Russian audience had the opportunity to talk to him.
Ford is the only American automaker to have survived the crisis, while General Motors and Chrysler went bankrupt. Was it easy for the company, and what has changed since the pre-crisis times, when the American division consistently suffered losses, and the European division made a profit every year?
Rolant de Waard: Ford Europe has been profitable for five years in a row, following a restructuring at the start of the decade. Thanks to her, we began to use our production capacity by 100 percent. And this, if you want to have an effective, profitable business, is almost the main thing.
In America, when demand began to fall and the company suffered serious losses, we also began restructuring. But then they faced a recession - demand fell even more, losses became even greater ... In general, it was not easy. But we did one important thing - despite the hard times, we found money, including through loans, for the most important thing - to invest in a product, in new models. Thanks to this, we have created a strong foundation and are emerging from the crisis very confidently - with an increase in market share and excellent prospects. Then, when the crisis reached Europe, and everything was not perfect here, demand began to fall, and we decided to cut production volumes as quickly as possible.
When demand falls, you need to stop producing by any means more carsthan the market needs. We did it in the first quarter of 2009, and this period became unprofitable for Ford of Europe. But we, in fact, cleared our way into the future and in the third quarter became profitable again.
Question: What about the market share in Europe?
Rolant de Waard: Market share is growing. Ford now has 9.1 percent of the European car market, up from 8.6 percent last year. First of all, this is the merit of the new "Fiesta", which is selling much better than we expected, and new Ford Ka.
In Russia we did the same - we halved production volumes and tried to sell off our stocks as soon as possible - we sold them. In addition, at the end of last year, the ruble fell sharply, and we had to adjust prices. Now the foreign exchange market seems to be calm, and you can make plans for the future. Our plans are pretty optimistic. For the market share of Focus and Mondeo is growing, and the market as a whole should soon revive. The fact is that in January the Russian government is launching a car scrappage bonus program and this should seriously spur demand for new cars.
Question: Will the plant in Vsevolozhsk soon reach its design capacity of 125 thousand cars?
Rolant de Waard: No, unfortunately, not soon. Not next year, for sure. And hardly in 2011. This requires the market to grow at least 50 percent compared to what it is now.
Unfortunately, there is nowhere to export cars from Russia. The crisis has spread all over the world, and the demand for cars abroad is fully satisfied by our other factories.
We look forward to seeing the government start paying premiums to buyers of new cars who have scrapped their old cars. You can, of course, complain that this program will not apply to all of our the lineup, and will affect only Mondeo and Focus assembled in Russia, but this is more than enough. We see that such programs are successfully working abroad and we expect that they will seriously push demand - it should grow by about 20 percent. It's a lot! If there is no such program, everyone will lose - the entire automotive industry. We will lose money that we have invested in production, in training employees, in creating a dealer network ... Dealers will also lose their investment ... And when the market starts to recover, invest in car business no one wants to.
Question: In Russia, before the crisis, Ford was, to put it mildly, very competitive - in every market segment you offered almost the best price-quality combination. Now that the ruble has fallen, you have raised prices, and with this your market niche has changed. The Focus is no longer a "budget" car, as many thought it, and the Fiesta is one of the most expensive in the class. More expensive than Volkswagen polo... I do not say that ford cars should be cheap - in Europe, the Focus 1.6 sells for almost 20 thousand euros - the same as the Golf - and it is well bought. Better than Japanese classmates, who, by the way, are cheaper there. But in the Russian market we are accustomed to something completely different. Have to get out of the habit?
Rolant de Waard: Let me first explain why this happened. The point here is not only the crisis - we were the first foreign companies to start fully producing cars in Russia, and, of course, this allowed us to reduce their prime cost. That is, we have a competitive advantage. They can be disposed of in different ways: you can simply make a big profit, or you can lower prices, which we did in due time. Reduced as much as they could.
Now we are not the only ones who produce cars in Russia, that is, our competitors have the opportunity to lower prices to the same level. If, of course, they want it. In the current situation, of course, the place of "Fords" in the market has changed. But not at all due to the fact that they have risen in price, by no means - the price-quality ratio of the Focus remained the same as a year ago, if not better. But competitors - yes - they began to sell cars cheaper. But who said Ford should be cheaper than the rest? How is the Fiesta inferior to the same Polo?
Question: Tell me, are you happy with your lineup? For example, Volkswagen is now sincerely happy that several years ago it was the first automaker to introduce gasoline engines with direct injection and a turbocharged and dual-clutch transmission. Ford also began to move in this direction, but much later. Obviously, you had other priorities. Which ones? And are you happy that you invested in exactly what you invested in?
Rolant de WaardA: To begin with, I would not say that we are far behind Volkswagen. Take the same gearboxes with two clutches - in markets where customers need such a transmission, we offer it. Moreover, our Powershift is not just a "Ford version of DSG", but a different gearbox with its own advantages. In Russia, it is still available only on diesel C-Max, but next year, I think, it will become truly massive.
Now about the motors. In the early 2000s, we had such a car - Mondeo SCi - and it was equipped with a gasoline engine with direct injection. But at that time we decided that it would be much more correct to concentrate not on gasoline, but on diesel engines. Together with Peugeot, we have created excellent engines, making the Focus the first car in its class with CO2 emissions of less than 120 grams per kilometer. And "Fiesta" was the first with an indicator of less than 100 grams per kilometer!
The decision to focus on diesels was 100 percent correct. If only because there are more such cars in Europe than gasoline ones. But now the requirements for exhaust diesel engines become tougher and gasoline engines, obviously, waiting for a second wind. And I think we prepared for this just in time.
In addition, we realized that turning Ford into a single company is even more important now than before. The process has started - the new Fiesta became the first "world" car. Then there will be "worldwide" technologies. The same ecoboost motors - they will be offered on all continents.
I would also like to say that globalization in no way infringes the interests of buyers. As before, we will make different machines for different markets. But for all the differences in tastes, car owners around the world have some common values \u200b\u200b- for example, high-power motors and low consumption fuel is a plus for the American market, and for the European, and for any other. And the fact that we will offer ecoboost motors everywhere is not unification for the sake of unification, not a compromise, but an advantage - both for us and for consumers.
Question: And which of the current Ford models, in your opinion, is the most successful?
Rolant de Waard: Can I tell you that this is an incorrect question? The point is that people need different cars, and none of them can be called the best. Although, perhaps we can say that we have the most successful Fiesta, because the sales results have exceeded our most optimistic expectations.
Question: Jaguar Land Rover and Mazda shares have already been sold, Volvo will be next in line. The fact that these companies, after the change of ownership, will continue to use Ford units - the same engines - is only a plus for you - the company will receive money. On the other hand, you will also have to pay "strangers" - after all, now Volvo and Mazda engines are used on European Ford models. Are you planning to continue this collaboration or terminate it as soon as possible?
Rolant de Waard: When we create new car, then we always start from the consumer qualities that the market needs, and not from where to get the engine or other parts for it. If we have a suitable motor, good. No - it can be purchased externally - from another Ford company or even from competitors. There is nothing to worry about - we produce diesel engines together with PSA Peugeot Citroen, together with Fiat we produce the Ford Ka and Fiat 500 and are not shy about sharing our know-how. At the same time, despite the large number of common parts, the diesel engines on our cars are configured differently than on the French. And the Ka looks and drives differently from Fiat.
Simply put - you can cooperate with anyone - even with malicious competitors. The main thing is not to forget that your ultimate task is to make a real Ford and not a faceless set of units, even the most advanced ones.
Question: Experts say that in the foreseeable future there will be much fewer independent carmakers - some will simply disappear, and the rest will merge with each other. Do you exclude some kind of global alliance for yourself, like Renault-Nissan?
Rolant de Waard: Any company strives to ensure that its business is as efficient as possible. This is why we are building the "One Ford", for this we are creating joint ventures for the production of cars and components - the same gearbox with two clutches we are making together with Getrag. While such synergy is enough for us, no one knows what will happen next.
A passenger car is chosen by living people for themselves. And this is not so much a rational as an emotional choice. Therefore, there are actually more and more cars - in every segment. Remember, earlier in the B-class there were only hatchbacks, in the D-class there were only sedans, and four-wheel drive cars, with rare exceptions, were large and heavy? Now some people need crossovers, others need small sedans, and still others need minivans. And there are still people - and there are a lot of them - who need a car of brand A, not brand B. And if brand B absorbs brand A, it will not win from the point of view of business efficiency, but, on the contrary, will lose customers. And the number of "global" brands now, in fact, is not decreasing, but increasing. More precisely, it continues to increase. First, the Koreans entered the market, now the Chinese are rising ... While they have an unsaturated market within the country, I am sure they will quickly cope with this and will seriously undertake to conquer the world.
