1 00:00:00,040 --> 00:00:07,600 Speaker 1: I'm a phone. I don't. Well, that's sprush. Is the 2 00:00:07,640 --> 00:00:10,039 Speaker 1: big move at Ford about the new CEO coming in? 3 00:00:10,080 --> 00:00:13,600 Speaker 1: About trucks? It's about self driving cars. What's it all about? 4 00:00:13,640 --> 00:00:16,680 Speaker 1: Keith Notton knows. He's our auto editor at large for 5 00:00:16,760 --> 00:00:20,919 Speaker 1: Bloomberg News. Keith joins us right now, Keith, Um, what's 6 00:00:20,960 --> 00:00:23,040 Speaker 1: first of all? Is this a surprise? I mean Ford 7 00:00:23,280 --> 00:00:27,600 Speaker 1: just announcing uh, sort of cutbacks in its labor force. Uh, 8 00:00:27,880 --> 00:00:29,760 Speaker 1: this isn't the kind of thing that they might have done, 9 00:00:29,800 --> 00:00:31,600 Speaker 1: you'd think if they're just about to change CEOs and 10 00:00:31,600 --> 00:00:34,320 Speaker 1: they weren't happy with Mark Field the CEO. Well, he 11 00:00:34,400 --> 00:00:37,320 Speaker 1: actually has been on the hot seat for a little while. 12 00:00:37,479 --> 00:00:40,519 Speaker 1: Right before the annual meeting Ford's board. Um kind of 13 00:00:40,520 --> 00:00:42,600 Speaker 1: called him on the carpet and had him, you know, 14 00:00:42,680 --> 00:00:46,320 Speaker 1: explained his strategy. Clearly they weren't satisfied with his answers, 15 00:00:46,360 --> 00:00:49,640 Speaker 1: because here we are two weeks later in the replacing him. 16 00:00:49,680 --> 00:00:54,639 Speaker 1: You know, during Mark Field's tenure, Ford stock fell um 17 00:00:54,680 --> 00:00:58,160 Speaker 1: and it was showing no signs of reversing course. Um, 18 00:00:58,440 --> 00:01:00,000 Speaker 1: there was a feeling that he was a little too 19 00:01:00,040 --> 00:01:03,120 Speaker 1: slow in his decision making as a market shifted to 20 00:01:03,840 --> 00:01:07,520 Speaker 1: SUVs as gas prices fell. Uh, and that maybe he 21 00:01:07,560 --> 00:01:09,800 Speaker 1: was a little too focused on the self driving cars 22 00:01:09,800 --> 00:01:11,760 Speaker 1: you were talking about in all the future products that 23 00:01:11,800 --> 00:01:14,640 Speaker 1: are you know, years away from ever making any money. 24 00:01:14,680 --> 00:01:19,000 Speaker 1: Too focused. Wait, sorry, because that's part of the spin here, Sorry, Carol. 25 00:01:19,400 --> 00:01:21,160 Speaker 1: That's part of the spin here is that he's all 26 00:01:21,160 --> 00:01:23,160 Speaker 1: about the future. He's the new guy is all about 27 00:01:23,200 --> 00:01:25,120 Speaker 1: self driving cars. He ran the self Those are the 28 00:01:25,120 --> 00:01:27,520 Speaker 1: headlines I read this morning very early when they crossed 29 00:01:27,640 --> 00:01:29,240 Speaker 1: the guy in charge of self driving cars and now 30 00:01:29,240 --> 00:01:31,240 Speaker 1: in charge of Ford. But in fact, he worked at 31 00:01:31,280 --> 00:01:34,959 Speaker 1: Steelcase in Michigan for thirty five years. He's either furniture guy, 32 00:01:35,040 --> 00:01:37,280 Speaker 1: not a not a not a self driving car guy, 33 00:01:37,360 --> 00:01:40,199 Speaker 1: unless he did like self driving foule cabinets or something 34 00:01:40,200 --> 00:01:42,520 Speaker 1: that steel Case I don't aware of. Well, he is 35 00:01:42,560 --> 00:01:45,800 Speaker 1: also a turnaround guy. So you know, at Steelcase, things 36 00:01:45,920 --> 00:01:49,480 Speaker 1: were languishing and uh, and they moved out their CEO. 37 00:01:49,600 --> 00:01:52,960 Speaker 1: He came in and kind of had them rethink, you 38 00:01:53,000 --> 00:01:55,120 Speaker 1: know what they're creating and and it's sort of just 39 00:01:55,160 --> 00:01:57,680 Speaker 1: working on furniture. They were kind of working on you know, 40 00:01:57,720 --> 00:01:59,559 Speaker 1: what do we need to give people to work better? 41 00:01:59,640 --> 00:02:02,440 Speaker 1: So he ushered in an era that that had the 42 00:02:02,520 --> 00:02:06,040 Speaker 1: kind of open workspaces that have been commonplace and replaced 43 00:02:06,040 --> 00:02:08,200 Speaker 1: the old cubicle farms that we all used to work in. 44 00:02:08,600 --> 00:02:10,400 Speaker 1: And then after that he went to the University of 45 00:02:10,440 --> 00:02:13,120 Speaker 1: Michigan as their athletic director when the place was in 46 00:02:13,120 --> 00:02:17,200 Speaker 1: total turmoil, and he recruited Jim Harbaugh to coach football team, 47 00:02:17,400 --> 00:02:20,080 Speaker 1: and he cut a huge deal. Maybe that's why he 48 00:02:20,080 --> 00:02:22,880 Speaker 1: took away from the forty nine and he got a 49 00:02:22,960 --> 00:02:26,040 Speaker 1: huge deal with Nike, one of the biggest endorsement deals 50 00:02:26,080 --> 00:02:29,720 Speaker 1: ever in collegiate athletics. So um, he had those two 51 00:02:29,720 --> 00:02:32,960 Speaker 1: turnarounds behind him, and now Ford is that it's not 52 00:02:33,000 --> 00:02:35,200 Speaker 1: a classic turnaround. This is a company that's making billions 53 00:02:35,200 --> 00:02:37,800 Speaker 1: of dollars, but they have been languishing. The stock in 54 00:02:37,800 --> 00:02:41,240 Speaker 1: particular has been languishing in profits or heading south. It's interesting. 55 00:02:41,280 --> 00:02:43,840 Speaker 1: Bill Ford, in in an interview with our David WESTONHM 56 00:02:43,840 --> 00:02:48,080 Speaker 1: Bloomberg TV Daybreak America said Bill Ford said Mark Fields 57 00:02:48,080 --> 00:02:51,000 Speaker 1: did amazing things for Ford. Is that a fair assessment 58 00:02:51,080 --> 00:02:54,440 Speaker 1: Keith Milton, Well, he certainly, you know, was the chief 59 00:02:54,440 --> 00:02:58,760 Speaker 1: executive over record earnings years. You know, the two previous 60 00:02:58,840 --> 00:03:02,280 Speaker 1: years we're huge earnings here is over ten billion dollars. 61 00:03:02,360 --> 00:03:05,320 Speaker 1: But um, But what was happening was he was really 62 00:03:05,360 --> 00:03:09,480 Speaker 1: being outmaneuvered by General Motors in particular, they're making more money, 63 00:03:09,520 --> 00:03:12,000 Speaker 1: they have the right products and the hot segments right 64 00:03:12,040 --> 00:03:16,440 Speaker 1: now large sport, utility vehicles, pickup trucks. Uh and um. 65 00:03:16,480 --> 00:03:20,000 Speaker 1: They seem ahead of Ford on electric vehicles. They're going 66 00:03:20,040 --> 00:03:21,640 Speaker 1: to be quicker to the market with the kind of 67 00:03:21,680 --> 00:03:25,160 Speaker 1: long range electric vehicle that that will compete against Tefla 68 00:03:25,240 --> 00:03:27,920 Speaker 1: and ford Stone playing catchup well. And how much of 69 00:03:27,960 --> 00:03:29,959 Speaker 1: it is about we did hear from Bill Ford that 70 00:03:30,040 --> 00:03:34,480 Speaker 1: it is about electric vehicles, about autonomously driving vehicles. How 71 00:03:34,560 --> 00:03:38,520 Speaker 1: much of this move is about that? How much of 72 00:03:38,560 --> 00:03:41,640 Speaker 1: it is about kind of fixing the traditional product mix. 73 00:03:42,520 --> 00:03:44,680 Speaker 1: You know, it's a blend. They absolutely have to invest 74 00:03:44,720 --> 00:03:46,480 Speaker 1: in this stuff because you know, the way we get 75 00:03:46,520 --> 00:03:48,960 Speaker 1: around is going to change dramatically over the next turn 76 00:03:49,040 --> 00:03:53,200 Speaker 1: or fifteen years. So Ford isn't part of the autonomous age. 77 00:03:53,560 --> 00:03:55,200 Speaker 1: There will be no more for it. So they have 78 00:03:55,320 --> 00:03:57,520 Speaker 1: to put money, a lot of money into that, but 79 00:03:57,600 --> 00:03:59,640 Speaker 1: they have to do it in a sort of targeted way. 80 00:03:59,680 --> 00:04:02,040 Speaker 1: And that's that's part of the criticism that Ford's approach 81 00:04:02,080 --> 00:04:04,400 Speaker 1: had been kind of scatter shot. They're trying to put 82 00:04:04,440 --> 00:04:06,960 Speaker 1: a chip down on every number on the table instead 83 00:04:07,000 --> 00:04:10,360 Speaker 1: of having a clear, well defined strategy. The street didn't 84 00:04:10,440 --> 00:04:12,840 Speaker 1: understand what Ford was doing, and that's why investors kept 85 00:04:12,880 --> 00:04:16,360 Speaker 1: fleeing the stock. Why didn't Mark Fields get it? Well, 86 00:04:16,520 --> 00:04:20,400 Speaker 1: it's a complicated process. But what he what he lost 87 00:04:20,560 --> 00:04:23,080 Speaker 1: was the lesson of his predecessor, Alan Mollalley, which is, 88 00:04:23,120 --> 00:04:26,600 Speaker 1: you need this kind of singular purpose, this clearly defined 89 00:04:26,720 --> 00:04:29,719 Speaker 1: mission that's repeated over and over again, that can rally 90 00:04:29,760 --> 00:04:32,520 Speaker 1: your troops and rally your investors and importantly, at the 91 00:04:32,600 --> 00:04:35,960 Speaker 1: end of the day, rally your board of directors. Well, yeah, 92 00:04:36,000 --> 00:04:37,880 Speaker 1: it sounds like if you've got a turnaround. Guys sitting 93 00:04:37,880 --> 00:04:41,680 Speaker 1: on the board there that that and who's who's who's 94 00:04:41,680 --> 00:04:44,479 Speaker 1: probably belongs all right country clubs in Michigan. That that 95 00:04:44,480 --> 00:04:48,240 Speaker 1: that that that doesn't that doesn't help you have job security. Well, 96 00:04:48,279 --> 00:04:51,240 Speaker 1: I think Hackett, you know, has a really good reputation. Uh, 97 00:04:51,440 --> 00:04:54,080 Speaker 1: he has a lot of contacts actually out in Silicon Valley. 98 00:04:54,080 --> 00:04:59,279 Speaker 1: Bill Ford was saying today he's done. He's worked directly 99 00:04:59,279 --> 00:05:02,159 Speaker 1: with Steve Jobs when he was alive. So this is 100 00:05:02,160 --> 00:05:04,000 Speaker 1: a guy who knows his way around the valley and 101 00:05:04,040 --> 00:05:09,000 Speaker 1: increasingly that's where the future of mobility is happening. Alright, 102 00:05:09,080 --> 00:05:12,360 Speaker 1: so you guys know this sector so well, Keith, what 103 00:05:12,440 --> 00:05:15,880 Speaker 1: do we need to see from the new Ford CEO 104 00:05:16,000 --> 00:05:19,160 Speaker 1: Jim Hacket? I guess over the next six months. I mean, 105 00:05:19,160 --> 00:05:22,320 Speaker 1: I don't know what kind of timeline you give him. Yeah, 106 00:05:22,360 --> 00:05:24,200 Speaker 1: I think he'll have more than six months. But the 107 00:05:24,680 --> 00:05:27,680 Speaker 1: but you know, what ideally would like to see is 108 00:05:27,800 --> 00:05:30,160 Speaker 1: this stock that's been doing nothing but falling for three 109 00:05:30,240 --> 00:05:33,560 Speaker 1: years start to turn around. It's turned around a little today, 110 00:05:33,720 --> 00:05:36,320 Speaker 1: but you know, there's a lot of ground to make up. Um. 111 00:05:36,360 --> 00:05:40,800 Speaker 1: But more importantly, they need to more clearly explain what 112 00:05:40,839 --> 00:05:43,320 Speaker 1: the heck they're doing, where they're going, how they're going 113 00:05:43,360 --> 00:05:45,080 Speaker 1: to do better today, how they're going to do some 114 00:05:45,160 --> 00:05:47,600 Speaker 1: of the basic blocking and tackling like quality, you know, 115 00:05:47,720 --> 00:05:51,160 Speaker 1: getting cars on Consumer reports best lists and things like that, 116 00:05:51,279 --> 00:05:55,000 Speaker 1: and you know, sort of clearly articulated, easy to understand 117 00:05:55,080 --> 00:05:59,400 Speaker 1: strategy for playing a role in the next stage of transportation. 118 00:06:00,560 --> 00:06:03,880 Speaker 1: I was just shocked. Were you shocked this morning? Well? Yeah, 119 00:06:03,920 --> 00:06:06,919 Speaker 1: were you, Keith? Not? Yeah? I absolutely was. Yeah, it 120 00:06:07,000 --> 00:06:09,560 Speaker 1: was a big surprise. But you know, there's a shorter 121 00:06:09,640 --> 00:06:13,080 Speaker 1: LEAs now on executives, and they need to perform where 122 00:06:13,080 --> 00:06:15,480 Speaker 1: they're gone. I gotta I gotta wonder how much of 123 00:06:15,520 --> 00:06:17,919 Speaker 1: it has to do with Testla's talk price and that 124 00:06:18,160 --> 00:06:22,440 Speaker 1: that was inverse reaction to the results. The Tesla's results 125 00:06:22,440 --> 00:06:25,920 Speaker 1: have been very weak and Ford's have not been as weak, 126 00:06:26,000 --> 00:06:30,200 Speaker 1: and yet socks conopposite directions. Yeah, that was an embarrassment 127 00:06:30,240 --> 00:06:32,040 Speaker 1: having test with pass them up to market. Tell you 128 00:06:32,160 --> 00:06:34,359 Speaker 1: that's for sure, alright, Keith, thank you, thank you, Thank you. 129 00:06:34,440 --> 00:06:37,320 Speaker 1: Keith not in auto editor at large, breaking down the 130 00:06:37,320 --> 00:06:40,479 Speaker 1: news on Ford today Bloomberg News in our Detroit bureauf 131 00:06:40,480 --> 00:06:43,200 Speaker 1: I take a quick check on board shares, folks, at 132 00:06:43,240 --> 00:06:45,760 Speaker 1: one point six at eleven dollars four cents a share. 133 00:06:45,920 --> 00:06:47,320 Speaker 1: You're listening to Bloomberg Radio.