Ford in America

Ford stance: A cut above ailing rivals
DETROIT — Here's a big challenge for Ford Motor Co. as it seeks federal aid: Avoid the stench of death that surrounds crosstown rivals General Motors and Chrysler LLC.
Ford is losing billions of dollars, and its sales have plunged nearly 21 percent this year. So executives are struggling to convince the public that Ford is Detroit's healthy company.
Ford's biggest advantage is that CEO Alan Mulally mortgaged most of the company's assets in 2006, giving it available cash of nearly $30 billion. That means that, despite losing $8.7 billion so far this year, Ford says it can survive 2009 if industrywide U.S. sales are 12.2 million.
There's more at stake for Ford than good public relations. Mulally has identified the public's skepticism as a barrier to Ford's long-term recovery.
Last week Mulally did cell-phone interviews with reporters from a Ford Escape Hybrid during his drive from Detroit to congressional hearings. He appeared on TV news shows. He visited congressional offices. His message: We've made mistakes, but we're on track now. He told lawmakers: "We are on the right path to becoming a profitable, growing company."
In his congressional testimony, Mulally frequently pointed out that Ford made money in the first quarter, and Ford is not requesting a direct loan at this time.
Rather, the company seeks a $9 billion line of credit that Mulally hopes he won't have to tap.
But Ford must continue the PR campaign to make a perception change stick with the public.
"We feel our story is unique, and we know the truth will get out," said Jim Farley, Ford's group vice president of marketing and communications.
Farley and Mulally say Ford wants to highlight product quality and new vehicles in the pipeline.
Soon after arriving from Boeing in late 2006, Mulally determined that Ford's biggest problem was the public's lack of awareness of improved Ford vehicles. Late last year he hired Farley, a star at Toyota and Lexus, to change that.
An ad campaign, "Drive One," touts Ford's quality and environmental, safety and technology credentials.
Ford points out it has been gaining share as industry sales have fallen.
Despite a company sales drop of 32.6 percent for November, the monthly market share for Ford's domestic brands came in at 15.8 percent of industry sales, a 1.6 percentage point gain from a year ago.
And Farley notes another advantage: the financial stability of Ford Motor Credit Co. Unlike GM and Chrysler, Ford Motor still works closely with its captive lender. Ford ads note that Ford Credit has money to lend.
Now Ford must convince the public that it's different. Said Farley: "This could be an opportunity for us."