thekeeling.com » Ford

GROWTH, BUT FROM A FAR SMALLER BASE

julian — Mon, 08 Mar 2010 17:09:03 +0000

The auto industry (with the exclusion of tainted Toyota) led by Ford is reporting increased demand for cars. Airlines, especially international carriers, still with a large portion of their fleet grounded are claiming higher passenger yields. Appliance sales are on the rise, or so says Whirlpool. In making the announcement they were going to increase production, CEO Jeff Fettig was equally happy and proud to inform America another plant (this one in Evansville IN) would be shuttered shifting that output to Mexican factories. Intel after closing American factories and downsizing by 6000 workers in 2009 actually went opposite to Whirlpool when they recently declared a record breaking quarter for profit. They are investing $billions back into U.S. plants because they see a continuing rise in demand for consumer and business computers. They didn’t say if some of the $billions would be spent on an increased workforce.

Healthcare seems to be the business to be in. It is as if they want to give President Obama an unwanted enema. WellPoint’s CEO Angela Braly is raising premiums by up to 56% and that is after recording record profits. Part of her claim is Well Point’s rolls are falling as more companies lay off workers and cancel health benefits and by a rise in COBRA recipients! How’s this? She made a statement COBRA members tend to be sicker and use more benefits. What a heartless bitch. I bet you dollars for donuts, WellPoint succeeds in its growth mode to become more profitable from its smaller base!

Warren Buffet the “Oracle of Omaha” recently sent out his annual shareholder letter telling them the book value of Berkshire Hathaway climbed by 20% in 2009. Berkshire has large investments in corporations such as Goldman Sachs, American Express, Coca Cola and owns outright a huge array of companies like Geico, BNSF Railroad and See’s Candies. He claims spending will have to improve before the growth we are currently experiencing will manifest itself in new jobs. That makes a real chicken and egg situation for the economy. How can spending go up when more and more people are losing jobs?

Again the fat cats of the world keep making more money as the middle class of America rapidly move to become the under class.

IT JUST GETS WORSE AND WORSE FOR POOR TOYOTA

julian — Fri, 12 Feb 2010 16:52:11 +0000

Not that I really care, but Toyota have dug a huge hole for themselves and the timing could not be worse. I have always claimed two things about Toyota, firstly they dumped their cars into the local market and secondly when the cost to keep Japanese executives on the American payroll became too great, they took on a bunch of disgruntled ex-employees for the “Big Three”. For me, I think the Japanese takes the world to be a bunch of tasteless idiots with the bland design of their cars. I would feel embarrassed to be seen driving a Prius or Avalon for starters. For years American’s have listened to the auto pundits tell us American manufacturers need to catch up on quality control is they are going to compete. Every time any of the “Big Three” have had a recall, out come the doomsayers telling us Chrysler, G.M. and Ford ought to shut shop and let Toyota and the other foreign manufacturers of cars supply America.

Isn’t it funny that over the past year with the exception of now Italian-owned Chrysler, Ford and G.M. have the most exciting range of cars on the market, but more importantly the public image of quality American auto standards has returned to just like the good old days when G.M. had 50% market share and Ford and Chrysler were fighting for the remainder. Last year the former besieged former Chairman/CEO of G.M. Rick Wagoner was portrayed as a fool. He was ridiculed when he tried to tell America G.M. was bringing out a range of automobiles that drivers would love and their competitors would envy. He was on the money, but he never envisioned Toyota falling off their bicycle to help them along!

Two colleagues at work decided four years back to buy Toyota. One became sick and tired of their credit department hounding him for the payment even before it was due so he paid them off and sold the car. The other was told to take a hike when he discovered the roof of his car starting eat away with rust and asked if the problem was under warranty. He spent $500 re-spraying the roof and sold it on Ebay within a week. Initially both were impressed with their vehicles, but the novelty soon wore off. When it came to service and feeling like a customer, Toyota fell far short. One copied me and now owns a Pontiac and the other opted for a European brand. They are adamant they would never buy Toyota again. I wonder how many other Americans will start feeling the same way, keeping a wide berth from Toyota. I reckon millions!

Mr Toyoda did the typical Japanese thing, basically dived into his bunker and resurfaced when he thought the coast would be clear. That behavior might have worked twenty years ago but today as Tiger Woods can attest to, silence will not allow the problem to disappear. His apologies at the one or two press conferences Toyota has mustered have rung rather hollow. Why? Toyota tried hard for months, probably years, to sweep the problem of eight million defective cars under the carpet.

TOYOTA AND TIGER IN THE SAME BOAT!

julian — Sat, 12 Dec 2009 17:00:48 +0000

Less than a year ago both Toyota and Tiger were at the top of their game. The spin doctors and the media did a marvelous job at telling us buying a Toyota was the only choice and Tiger represented everything that was great in a top sportsman and family man. In less than a month both their images have been irreversibly tarnished if not wrecked. Nearly 4.5 million Toyotas are being recalled with a string of safety issues. Every day another barmaid comes out of the “wood work”, excuse the pun, with claims she has been bedded by the Tiger. The media haven’t minded reversing their stance on Tiger but are more reluctant (because of the advertising dollar) to make Toyota’s plight headline news. Tiger and Toyota have one thing in common; each has gone into hiding, hunkered down into their bunker and are not revealing anything. They both need damage control consultants.

Disappointed as I am about Tiger, by contrast being a GM/Ford fan, I am delighted over Toyota. My commendation to both is guys, you’re doing the right thing. Please remain silent; that way your reutations will certainly continue to deteriorate. At the end of the day, you’re both a couple of first class phonies and the world would be better off by you retaining that new but well earned stature.