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Old 4 Apr 2010, 11:44 (Ref:2666538)   #1
Amaroo Park
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Ford sells Volvo to the Chinese

Ford sells Volvo to the Chinese, another one bites the dust
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Old 4 Apr 2010, 11:47 (Ref:2666542)   #2
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What a sad day for that brand.
After all the effort that went into rebuilding that brand.
You have to ask why Ford bought these brands, spent billions to get them right only to sell them in many cases just as they were coming good.
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Old 5 Apr 2010, 03:48 (Ref:2666898)   #3
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In two words, Jac Nasser. He was the brain child behind all those acquisitions at Ford. All of which nearly sent them to the wall, (not the Great Wall mind you)
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Old 5 Apr 2010, 04:41 (Ref:2666906)   #4
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mountainstar should be qualifying in the top 5 on the gridmountainstar should be qualifying in the top 5 on the gridmountainstar should be qualifying in the top 5 on the grid
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In two words, Jac Nasser. He was the brain child behind all those acquisitions at Ford. All of which nearly sent them to the wall, (not the Great Wall mind you)
When I was in business school, one of the major doctrines put across was "expand, expand, expand" and the more you acquire and the grow in size the better.

I fought a long and hard debate with professors and other students about that.

My argument was maybe sometimes that makes sense, but what is wrong with doing one type of product or service, really well with a lot of focus on quality and customer service and making a decent living for yourself and your employees? The only answer I could get was but, but, but and they never could counter my argument.

I think if Ford had just focused on doing a great job on making decent cars rather than trying to acquire every other car company out there, they would not have nearly died as a company. It's interesting once they have sold all these other companies off that their main products have improved dramatically.

It's interesting that Ford spent so much money on these other companies and in some cases like with Land Rover posting a $2 billion profit right before it's sale, that Ford got rid of these companies right as they were coming good.
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Old 5 Apr 2010, 04:43 (Ref:2666907)   #5
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Couldnt agree more. I think that is why Toyota is in the striff it is now. The sacrificed quality for quantity
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Old 5 Apr 2010, 05:38 (Ref:2666912)   #6
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The consolidation of brands that occurred in the 80's & 90's was an action taken by the manufacturers to create greater economies of scale. The logic went something like the more units you sold allowed the cost of the cars development to be spread.
This is all good and well however an established brand is cheaper to acquire than creating a new barnd. This is why we saw the major car companies (GM, Ford, VW) went about acquiring the smaller ones (Volvo, SAAB, Jag, Seat) and/or merged (Diamler-Chrysler).
While Toyota did go down the Lexus path one would say it has certainly been a harder task.
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Old 5 Apr 2010, 06:16 (Ref:2666913)   #7
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That logic works well when you dont pay over inflated prices for them and you can consolidate R&D and manufacturing, none of which was done particulary well
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Old 5 Apr 2010, 06:42 (Ref:2666921)   #8
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It's interesting that Ford spent so much money on these other companies and in some cases like with Land Rover posting a $2 billion profit right before it's sale, that Ford got rid of these companies right as they were coming good.
Ford could never of sold Jaguar without Land Rover.
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