When reading posts, there are yellow stars against the names of the most respected Shrewds. The number of points in the star, starting at 3, represents the Shrewd'm-Star rating. This number is the average recommendation that the author received over the last 12 months.
- Manlobbi
Halls of Shrewd'm / US Policy❤
No. of Recommendations: 3
Seems this always blows up in the company's face. Nissan tried it. Mitsubishi tried it. But Farley thinks he is uniquely blessed, so it will be different this time?
Ford courts riskier borrowers with lower rates for F-150 pickups: reporthttps://seekingalpha.com/news/4498191-ford-courts-...Steve...Farley zux
No. of Recommendations: 2
1.) Thanks to "culture" --- the bust-outs. Credit-Criminals. Roaches. Bogues.
Or the 'equity impaired'
Or the ones who can't finance a hamburger....
Are very very profitable business IF done the right way. For instance, if someone sort of knew Don Foss in michigan when he was a teenager, and subsequently made sure to do a tiny sliver of business with Credit Acceptance Corporation via REAL DIRECT business --- AND purchased some stock starting whne he was 19 years old in 1994....well....that guy knew that bad culture will breed more of this business....and that guy would be portly, a generous lover, and today....be right on. (For the non-businessmen here who think they are investors because of their porfolio shit, feel free to look up Credit Acceptance Corporation (CACC) since the mid 90's.... abd as a REAK busunessman he pursued the Bust Out business from 2000-2007 with CACC as the indirect lender but he did it in a LIMITED WAY --- only accepting the business that looked realistic and solvent....and maybe that fella got retro cash from that endeavor and parked the cash abroad so you freaking mooches can't touch it and can shove the "1%'er" sandyleelee TMF stuff up your bums :)
Anyhow, bad culture has churned out this demographic. And hey, some make money hand over fist .
Trouble is, when Corporate Idiots bred on college campus (you people) do it --- such as CEOs like Mr Farley (not smart at all) they lose their freaking asses in the long term. Because the bust-outs don't pay...they get repo'd....and it's negtive equity and losses at the auction.
People like Dummy Blue Oval Standards Farley use the BUST OUT business to peddle metal he's having tgrouble selling and yeah, for awhile it works.
Then come the losses.
Then the lower residual values.
Then the less competitive lease offers.
Ford Motor Credit did this with limited success with escorts and rangers back in the day.
Toyota Motor Credit is smarter -- they are liberal with a certain demographic that has NO credit....at times NO social security number....but they come to the table with 20-30% cash down equity thus giving them incentive to pay off the damn truck or car.....AND giving Toyota. loyal customer win a certain growing demographic.
CEO's like the one referred to by the OP haven't seen the ball since the kickoff.
Leave business to real men, sir.
Boom.
Somebody won.
No. of Recommendations: 2
Trouble is, when Corporate Idiots bred on college campus (you people) do it --- such as CEOs like Mr Farley (not smart at all) they lose their freaking asses in the long term. Because the bust-outs don't pay...they get repo'd....and it's negtive equity and losses at the auction.
As pointed out, some weeks ago, when Farley announced Billions more to be sunk into EVs, in the US, in the face of an openly, proudly, EV-hostile regime, when everyone else is pulling back. he turns 65 in two years. He can pocket the Millions he has made off of Ford, and leave the EV program write-offs to whoever the sucker is that comes next as CEO. Same playbook at work, in offering prime borrower rates to sub-prime people?
Chatted with my neighbor at the mailbox yesterday, about her new car. In recent years, she has leased three Ford Escapes, then three Ford Edges. The lease on her Edge ran out last week. She wanted another Edge, but Ford quit making them last year. So, she got another Escape. After nearly twenty years of leasing, she bought the Escape. Why? Ford is ending production of the Escape in a couple months, and she doesn't like the Bronco Sport. So, she bought the Escape because there is nothing Ford has in it's line that she would have wanted to have, in three years, when she would have had to turn in a leased Escape.
Farley lost the company a loyal customer, because she did not fit his business model of continuously escalating ATP and GP. Keep it up. You're doing a great job! (sarcasm)
Steve...Farley zux
No. of Recommendations: 1
Yes, what you said.
Rinse and Repeat.
And believe me when i tell you---- in addition to chasing EV plaudits, Farley put all sorts of bullshit requirements on the retailers and soured some trust there too. Ford is still a nice franchise solely because of Units in Operation meaning great Total Addressable Market for parts and service business and it still has some great nameplates such as the wonderful, wildly profitable,, and in demand gas guzzling F150. The big Aviators are also well received. But your observation is correct --- these Johnny Come Latelys "i know everything about the car business" people like Farley come along and discard the bread-and-butter business, in the name of vanity business.
Farley and his ilk - at various car companies have done this before.
Contrast that with Al Mullaly back in the day. This guy - before and wafter he became CEO did ENTRY level sales jobs at Ford Dealers. He knew he was new to the game and wanted to really get a front line feel. He literally had vending machine dinners if he had late customers some nights, he literally had lunches at his desk (back when that stuff was allowed)
They aren't all bad but Farley - meh---so so typical.
You mentioned nissan - lol yes. Look up ex CEO Ghosn. There's a treat :)
No. of Recommendations: 0
...these Johnny Come Latelys "i know everything about the car business" people like Farley
Farley has been with Ford a long time, but seems to be in the thrall of Welchism. VW is also pursuing the "going upmarket" model, to inflate ATP and GP. Ironic, that both Ford and VW were made on affordable transportation for the masses.
But the "JCs" tend to think they are uniquely gifted.
I have told the story on the Fool board, of being at a Radio Shack store manager's annual meeting, in 88 or 89. At the breakout session with corporate management, one store manager made the mistake of trying to tell the President of Radio Shack, Bernie Appel, that the competitive environment had changed, and RS' model was not viable. Bernie thundered "I've been in this business forty years. I know everything". Another year, someone made the mistake of trying to tell Bernie RS product was overpriced, compared to the competition. Bernie thundered "we do people a favor when we sell them our stuff". Other honchos followed Bernie, but they never changed the RS business model, and slowly ran the company into the ground.
I had not heard that story about Mulally, but yes, the net sifter says he did, indeed, work as a car salesman, at Galpin Ford, in Van Nuys, California.
Wiki's article doesn't say anything about what sort of Prole jobs Farley ever had, He was a honcho at Lexus, before joining Ford in 2007.
Steve
