Posts tagged ‘Wall Street’


Ford to stop selling passenger cars in the US and Canada, save for Mustang and Focus Active

26.04.2018


The Ford Focus Active: by the turn of the decade, this will be the only four-door passenger car Ford will sell in the US and Canada

In a surprise move, Ford has announced that it will cease selling passenger cars in the US and Canada by the early 2020s, excepting the Mustang and the Focus Active.
   The announcement was actually for ‘North America’ but as Ford of México does a reasonable trade on Figos and Fiestas, it’s hard to see the policy be uniform right across the continent.
   It’s a cost-cutting exercise, designed to save $25,500 million in five years, and trucks and SUVs simply make more money for them. Small cars mean small profits. In fact, car sales lag those of the F-series, Escape and Explorer in the US. Shares have risen on the news.
   That means Americans and Canadians will say goodbye to the Fiesta, Fusion (the four-door sedan counterpart to the Mondeo) and Taurus, the last of which is already superseded in China. If you liked the cooking RS and STs, then too bad. Lincolns are losing money for Ford, too, so maybe the Continental will vanish—given the Fusion is history, the MKZ will follow. That doesn’t leave much in the Lincoln line-up.
   My initial reaction was that the economies of scale would worsen: if you’re not developing for a global market, will development costs be successfully amortized in the same period? We have, however, seen the Japanese do reasonably well with products strictly for the North American market, e.g. certain Acuras and Hondas that are sold only in their neck of the woods. We also know most of the costs of the car are in the platform and architecture, and Ford has shown decent adaptability, particularly with the C519 Focus (the recently released Mk IV).
   Ford says the cuts will come from sales and marketing, engineering and product development, as well as material costs, manufacturing and IT, in that order, according to Automotive News.
   The fact that product development and engineering rank so highly there is worrying to me.
   They’re bandying the word efficiency about a lot, and that always has me worried. That’s the word you used to hear from corporate raiders like Slater Walker. Things can look efficient while they’re being weakened.
   CEO Jim Hackett says he’s feeding the healthy parts of the business, ‘and deal decisively with the parts that destroy value.’
   While it’s true that the crossover, SUV and truck markets are strong, as they are in many parts of the world, I can’t help but think that Ford isn’t preparing itself for tougher future scenarios.
   Energy crises can come unpredictably, for one. Ford was late to the downsizing game in the 1970s because it saw the dollar signs with big cars. By 1977, GM had stolen a real march on Ford. By the turn of the decade, Chrysler was back from the brink with fuel-efficient cars while Ford sailed into the red.
   Chrysler found itself too truck- and SUV-heavy with the recession of the late 2000s, and its entry-level nameplate Plymouth had already vanished, thanks to mismanagement by Daimler earlier in the century.
   While there’s not always a need for a full line—AMC taught us that extending yourself too far isn’t always wise—I wonder if Ford is leaving itself vulnerable.
   Crossovers like the Escape, which might outsell the Fusion, are being beaten in the market-place by the likes of the Toyota RAV4, so it’s not as though Ford is that strong in all the markets it wishes to remain in.
   GM, having pulled out of Europe and Russia, might be in better shape because of its position in China. Ford trails GM when it comes to its Chinese footprint, although it will remain in Europe.
   Ford’s Jim Farley says the company is looking at new types of vehicles that are spacious, versatile and economical, which hopefully will fill the gap should economic surprises surface. Because you need something cheap to hook buyers and get them to the brand. That’s not going to happen if Focus Active is the smallest car in the line-up.
   Ford is likely to have these on global platforms. But that signals to me a real need to remain strong in R&D. Failing that, Ford is looking to partner up with someone, and it may already have an idea who that is.
   I am speculating here, since I don’t have any figures outlining what proportion of revenue is devoted to that area.
   Nevertheless, this sounds like an appeasement of Wall Street.
   That leaves one concern over nameplates. Ford has successfully introduced nameplates over the years because the product was right: Cortina, Mustang, Escort, Capri, Fiesta and Focus among them. But it has also failed by killing nameplates and replacing them with ones that had no real goodwill, such as Five Hundred and Freestyle.
   Whatever Ford has in mind, I hope for their sake that the new product is compelling, as much as the Mustang and Fiesta were when they appeared on the market. Both emerged in the wake of economic recessions, with Ford innovating because it had to.
   In this century, Alan Mulally’s time at Ford had a measured, sensible approach, where you could understand the future. There are question marks over what Hackett has planned, and usually we have some clue what these new products will be four years out. All I know of is that the Ranger will make it to the US again, boosting truck sales, but that’s hardly an innovation. That’s just filling a market niche with familiar product.
   Will Ford do Brasil come up with something that can be sold in both North and South America? Perhaps the next-generation Ecosport?
   There are lessons in history that shouldn’t be ignored, and Ford has one of the most interesting pasts of any car maker. There is, however, a feeling from the announcement that this heralds a time of retrenchment, as its profits fall globally, and net income in the US rising for the first quarter in part due to a lower tax rate.
   Remember, Isuzu also once thought it was a good idea to stop selling passenger cars and focus on SUVs and trucks. And they’re no longer around in North America.

Tags: , , , , , , , , , , , , , , , , , , , , , , ,
Posted in business, cars, China, globalization, marketing, USA | 1 Comment »


Even on Instagram, they prefer bots to legitimate users

05.05.2015

Instagram bans are like Facebook blackouts or Google blacklists: no matter what the company says your time-out is, it’s considerably longer.
   Day 1 was Sunday, when I noticed that the likes I made via Ink 361 didn’t stick. I went back to Iconosquare (Statigram) and this message flashed up:

   The wisdom online is that this is a 24-hour ban and I should be back to normal. It’s Tuesday, and I’m still barred from liking unless I go to Instagram itself.
   I’ve been reading that the like limit is around 120 photos and videos per hour, and I haven’t come close to that. I don’t even see 120 photos per hour through following 500-odd people. Other posts at the above-linked page suggest you need 50 seconds between each like. Rot.
   Instagram really needs to come clean about this, as none of this computes. Some thoughts I’ve had over the last few days follow.
   1. Instagram recommends accounts you might like. If you follow them, inevitably you will like the things on them. Of course I’ll like more media as a result. Yet if you do this, you’ll get banned. Where is the logic behind this?
   2. Instagram penalizes you for being quick with apps or being quick on your cellphone. Makes no sense: the fact I’m skilful doesn’t mean I’m a bot. I’ve also behaved in exactly the same way since November 2012, but I may follow more accounts that pique my interest because of (1).
   3. If you don’t want us liking stuff, then recommend to us some accounts we might hate.

   4. I’m not sure how to change the way I like things. I either like things or I don’t. Be more specific.
   5. I don’t use a bot. You guys do. You host thousands of them, and they spam us all the time. The ones I see and report have media going back three weeks to six months, so clearly you ignore the reports netizens make.
   6. Further to (5), Instagram can’t tell the difference between legitimate users and bots.
   7. I report a lot of bots, including bot-likers. Maybe you guys are sick of those who report bots, because those bots are keeping your share price where it is, as I suspect you claim them as legitimate users.
   8. Just admit that you guys don’t like these external websites using your API and we’ll be fine. Admit it. You’ve already forced the sites that use ‘Insta’ and ‘gram’ in their names to change, yet you don’t have a monopoly on either prefix or suffix. Just another typical US site with too many lawyers.
   I have sent feedback to Instagram but I doubt I’ll hear back. Of course, if I don’t, I shan’t know which of the above is at play here.
   As with most websites, I’m just an average user. Yet it shows that following the rules is bound to get you on the bad side of these guys. I hardly think that’s the message their friends in Wall Street want to hear, that Facebook and Instagram are overrun with bots while legitimate users get blocked.

PS.: I found this page dealing with Instagram limits. I know for a fact I was nowhere near these.—JY
   P.PS.: The ban was lifted on Saturday, May 9, i.e. six days later.—JY

Tags: , , , , , , , , , , , ,
Posted in business, internet, USA | No Comments »


Finance is broken, and we still haven’t learned

26.01.2014

I posted this quotation from I Acknowledge on my Tumblr today:

The news that should have us all worried is: the derivatives market contains $700trn of these debts yet to implode.
   Global GDP stands at $69·4trn a year. This means that (primarily) Wall Street and the City of London have run up phantom paper debts of more than ten times of the annual earnings of the entire planet.

   It brings me back to one of the first things we ever wrote in the Medinge manifesto: ‘Finance is broken.’ Attempting to value companies using shares or financial statements can be a mugs’ game—and that was in 2002, before the market became so improbable.
   If only we knew how much worse things would get. And we thought, in the immediate post-9-11 period, that we would be learning the lesson about a Dow that was well overvalued. History has shown that we didn’t. And the most recent recession hasn’t corrected things: we’re still sitting on a time bomb.
   We wrote in the manifesto, ‘We believe money is a poor snapshot of human value. Brands, however, create value. The branding industry is about creating value for our customers. It makes more sense to measure the ingredients of branding and relationships.’
   It’s an ideal, and one with its own problems, too. But I know that part of the finance industry has failed us through its greed. I’m not too certain how their deeds and those of these British forgers differ, creating “wealth” backed by nothing.

Tags: , , , , , , , , , , , , , ,
Posted in business, globalization, UK, USA | No Comments »


Occupy, the brand

27.11.2011

Serious! "Occupy Wall St"
VBlessNYC, under Attribution-NoDerivs 2.0 Generic

It was in the fourth quarter of the year that Occupy became a brand. Just capitalize it, and everyone knows what you mean. The original geographical indicator of Wall Street disappeared—to be fair, it began disappearing when similar protests began happening across the United States and then, the world—but I’ve only noticed in the last few weeks that the simple utterance of the word Occupy brought with it a multitude of values. That’s what a brand does: it’s shorthand or code for a range of associations.
   But what associations? If one believes some of the media, then Occupy is unfocused, with its protesters simply upset at the status quo. Others see it as an attack on the technocratic agenda and the multiple facets they possess, whether it’s the financial system being broken (something Chris Macrae brought up at my first Medinge meeting back in 2002) or corruption in politics.
   The truth, at least initially, was probably somewhere in between. I never believed Occupy was one where there was some “protester class” (at least one media outlet believed that), and that its members came from a cross-section of society, even if a few of the international protests brought out a few of the usual suspects from antiestablishment groups. It was clear, early on, certainly from the social networks that brought more direct news than the mainstream corporate media, that everyday people were involved. To me, the most poignant images were probably that of retired cop Capt Ray Lewis getting cuffed by the NYPD.
   However, there were so many conflicting emotions at Occupy that it would be hard to sum up just what people opposed. Maybe it was very hard to voice because there are so many parts to the system that they see is broken. I know when we did our post-Enron session at Medinge, we probably had three dozen Post-It notes on a whiteboard summarizing what we thought was wrong with the business system. They were then synthesized into eight points, not without some effort.
   As the protests wore on, the synthesis has taken place. It’s not an unusual phenomenon: gatherings of people can take time to figure out, through dialogue, what their common grounds are. Better doing it this way, codifying through dialogue, than having a set of values imposed on you from above: it’s a way to preserve authenticity in the movement. A good set of values that represents an organization, in a formal, corporate setting, is usually the result of in-depth research into staff, channel members and external audiences. In the branding world, especially with social networks empowering communications, it makes more sense to harness people’s thoughts through the technology we have at our disposal.
   It was interesting reading what Naomi Wolf had to say about Occupy in The Guardian. The crux of her article is not about brand whatsoever—she highlights potentially dangerous patterns as crackdowns take place and their implication for the US—but read on and she finds out there are certain things that Occupy wants through simply asking its supporters online:

  • get the money out of politics (e.g. ‘legislation to blunt the effect of the Citizens United ruling, which lets boundless sums enter the campaign process’);
  • ‘reform the banking system to prevent fraud and manipulation, with the most frequent item being to restore the Glass-Steagall Act … This law would correct the conditions for the recent crisis, as investment banks could not take risks for profit that create kale derivatives out of thin air, and wipe out the commercial and savings banks’;
  • ‘draft laws against the little-known loophole that currently allows members of Congress to pass legislation affecting Delaware-based corporations in which they themselves are investors.’

       No doubt there will be variations of these with Occupy movements in other parts of the planet.
       I don’t know Ms Wolf’s processes, or how academic this Q&A was, but perhaps that is not the question here. What we should realize is that the movement is taking a more defined shape, and the media’s contention that this is something unfocused is getting weaker by the day.

  • Tags: , , , , , , , , , , , , , , , , , , , , ,
    Posted in branding, business, culture, internet, media, politics, USA | 2 Comments »