http://www.claytoncramer.com/weblog/2006_08_13_archive.html#115596649312576497

Friday, August 18, 2006

Ford's Problems

I am concerned about Ford's continuing problems, both because they are
a major American employer and manufacturer, and because I own a fair
amount of Ford bonds (fortunately, much of which matures in 2007, well
before I expect any default could happen). Ford isn't the only American
maker being hit by rising gasoline prices, of course--but articles like
this one suggest that they are getting hit harder than GM and Chrysler:

Ford Motor Co. said Friday it would temporarily halt production at 10
assembly plants between now and the end of the year, blaming high gas
prices for pushing many consumers away from its pickups and SUVs and
toward higher-mileage models.

Ford said the cuts will reduce the need for costly incentives to reduce
bloated inventories. But they also illustrate just how out of step the
lineup at the nation's second-largest automaker has become, as it loses
market share to mostly Asian competitors under the watch of Chairman
and Chief Executive Bill Ford.

General Motors Corp. and DaimlerChrysler AG's Chrysler Group also have
been caught in the shift away from trucks and SUVs to smaller cars and
crossovers as consumers seek better fuel economy. The Big Three's
combined U.S. market share fell to 54.5 percent for the first seven
months of 2006, down from 58.7 percent in the same period a year ago.

GM already has announced it will cut production 7 percent to 8 percent
in the third-quarter.

Ford announced a turnaround plan in January that called for shedding
25,000 to 30,000 jobs and closing 14 plants by 2012. By year's end, the
company was to have cut production capacity 15 percent.

Bill Ford said last month that the plan _ dubbed the "Way Forward" _
would be accelerated. He said Friday that the details would be revealed
in September.
Okay, it is possible that Ford failed to respond as quickly as GM and
Chrysler to all this--but there is a pretty major boycott of Ford under
way at the moment--and I see no discussion of whether this might be
contributing to their problems, relative to their American competitors:

When Ford responds to those who write concerning their promotion of
homosexual marriage, the response they get from Ford's Customer
Relationship Center says their support "is a strong commitment we
intend to carry forward with no exception." For Ford, that support also
includes homosexual polygamy.

To show those supporting traditional marriage they mean business, Ford
sponsored the June 6 issue of the homosexual publication The Advocate.
The cover reads: "Polygamy & Gay Men. Dirty laundry or sexual freedom?
How gay men handle multiple partners." The article promotes homosexual
polygamy.

Ford sponsored the publication with a full page back cover advertising
Ford Motor company product Volvo and a full page ad for all Ford brands
with the line: "Ford Motor Company. Standing strong with America's
families and communities."

Ford's support for the magazine's promotion of homosexual polygamy
leaves no doubt that Ford means to continue pushing the homosexual
agenda, even including homosexual polygamy.

To see the front cover, the contents page and the ads for Ford and
Volvo, click here. I must warn you, it will be offensive to many. The
pages show the contents of the magazine which Ford helped sponsor with
two full-page ads, but I felt we must include the proof. If you don't
want to see it, please don't click the link.

At their stockholders meeting on May 11, Ford voted 95% of the ballots
cast to continue their support of the homosexual agenda rather than be
neutral in the cultural battle.

The boycott is working. The value of Ford stock has gone down 13% since
the boycott began, while sales continue to drop.
Now, the AFA is going to take credit for this damage to Ford, both to
make themselves look powerful, and to use it as leverage against Ford
to remain neutral in the culture wars.

I've never been a Ford fan; let me tell you about the Mercury Capri I
owned, long, long ago. But in a lot of Red State America, you buy Chevy
or you buy Ford. Ford's continuing insistence on being the gay car
company can't be sitting well.