Ford's protracted sales slump continued in May, while every other major automaker showed gains:
DETROIT — Toyota Motor Corp.'s U.S. vehicle sales jumped 14.1 percent in May to its best monthly level ever and General Motors Corp.'s sales rose 9.7 percent, helping boost industry sales 5 percent, as both automakers credited in part the appeal of their more fuel-efficient offerings amid high gas prices.
For the second month this year, Toyota outsold Ford Motor Co., which saw sales fall 6.9 percent as it continued to cut low-profit sales to rental companies. Nissan Motor Co.'s sales gained 7.4 percent, DaimlerChrysler AG's sales rose 3.9 percent and American Honda Motor Co. rose 2.5 percent.
Even factoring in the change in sales to rental companies, the article goes on to say that Ford's retail sales were still down 3%.
As he did last month, George Pipas of Ford tried an advance PR stunt that fizzled, but left less-than-close observers thinking that the company might be doing better than it really is:
George Pipas, Ford's top sales analyst, earlier this week had predicted that his company's retail sales to individual buyers would show a year-over-year monthly increase for the first time since October 2006. But he said Friday that sales during the Memorial Day holiday weekend didn't rise to his expectations.
It's more than a little hard to believe that on May 29 (earlier last week) Pipas didn't know what the Memorial Day weekend sales were going to be. After all, we knew May's monthly sales totals by late afternoon on June 1, i.e., the very next day.
The fact remains, even after all of the possible dissembling, that everyone showed gains except the folks in Dearborn. They, along with a willfully blind business press, still don't want to believe that the American Family Association's boycott over the company's aggressive support of homosexual advocacy groups and publications matters -- even though it has reached 710,000 participants, continues to grow, and is likely influencing the vehicle purchasing decisions of 15 million or more adults.
And while it spends company resources on "corporate social responsibility" and political advocacy, how is Ford doing on improving its business basics? Not good enough; in fact, the company remains in the productivity basement (bold is mine):
(in 2006) It took Toyota 29.93 labor hours to build components and assemble each vehicle.
Nissan Motor Co., 2005’s most productive company, finished second at 29.97 hours, but Harbour Consulting had to estimate that figure because Nissan would not provide 2006 data.
Honda Motor Co. finished third at 31.63 hours, followed by General Motors Corp. at 32.36 and DaimlerChrysler AG at 32.9, Harbour reported. Ford Motor Co. finished last at 35.1 hours, but that was nearly a 2 percent improvement over 2005’s 35.8 hours.Harbour Consulting President Ron Harbour said the difference between the most and least productive companies last year was 5.17 hours, more than two hours better than the 7.33-hour gap in 2005. Yet the gap still is equal to about $300 per vehicle in favor of Toyota, the study said.
The productivity gain came because Toyota’s performance declined while the Detroit Three continued to improve.
That 5-hour gap is made worse by Ford's still-certainly-higher wages and benefits. Maybe if there was less emphasis on "Corporate Social Responsibility" and political correctness, that gap would be narrower.
How "socially responsible" is it to go out of business, or even to deliberately take desperately needed resources away from producing better cars more efficiently?
As to the press -- It has somehow managed to cover many other less significant boycotts, as a Google News Search on "boycott company" (without quotes) from May 5 to June 4, done at 1:30 p.m on June 4, shows (items had to be found by going through many pages of the results):
- This boycott in Canada over one offensive sign in a Tim Horton's store made news.
- Here's news from England of a boycott of retailer Tesco over a drivers' strike: "Livingston MP Jim Devine has urged shoppers to boycott Tesco stores to show solidarity with the striking drivers."
- Editor & Publisher noted a couple of weeks ago that the Toledo Blade and its unions settled, with the unions ending the boycott of the paper they had called for during their job actions.
- Here's one about a boycott over animal extracts being included in Mars UK chocolate bars.
- And of course, the one-day US gas boycott that went nowhere got tons of coverage, including here.
Yet the only media coverage of the Ford boycott I could find was an opinion column at this Detroit alternative paper, whose author didn't disclose how many petition signers AFA has, and a dismissive post at one of the New York Times' blogs (may require free registration) that accused AFA of "dubious assertions." The Time's blog entry, dated May 18, had an assertion that wasn't "dubious," but rather "plain wrong," saying that AFA claimed 650,000 boycott supporters at the time, when by early May AFA already had nearly 700,000 petition signers.
Business reality check: What if only 100,000 potential car buyers in the past 12 months who would have bought a Ford vehicle decided not to because of the AFA boycott? That figure is not at all unreasonable -- While that's a hefty 14% of those who have signed the petition, it's less than 1% of the 15 million adults in the combined spheres of influence of the AFA (over 3 million members alone; add spouses, relatives, and close friends to that number) and the forty-plus other organizations who have signed on to the boycott.
100,000 vehicles at a probably low-end average selling price of $20,000 each would be $2 billion in lost sales. The impact could arguably be much greater, because:
- The average selling price I cited is likely higher.
- AFA boycott participants, who are often members of large families, would seem more likely to be buyers of higher-ticket, higher-profit minivans, SUVs, and crossover vehicles.
- The number of potential buyers who might otherwise have bought a Ford could be well over 100,000.
As Ford continues to turn in the worst sales performance among all major car makers month after month for almost every month in the past year, how irresponsible is it that Old Media isn't exploring whether the AFA's economic boycott is taking some kind of toll on the company?
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters



















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Comments Policy
I'm sure the boycott has an
June 5, 2007 - 08:11 ET by sarcasmoI'm sure the boycott has an effect, but I'm not sure that effect equals Ford's perceived low-quality issues. Toyota's kicking-ass for a reason.
JMR
Quality?
June 5, 2007 - 08:36 ET by jarednt1Ford and GM's quality for that matter is equal to or exceeds Toyotas quality.
In fact the new Toyota Tundera will have to be recalled to replace Engines!
I do not agree 100% with everything Ford contributes to however its very important for me to buy an American car.
With some hope the Ford Motor Company has nothing to do with those crazy liberals at the Ford Foundation.
I bought a brand new Ford less then a year ago and would buy another without a second thought.
If we are boycotting Ford because of our disagreement on their support of these things, perhaps we should stop using MS Windows as Bill Gates gives to allot of left wing groups.
Ford
June 5, 2007 - 08:51 ET by Tom Blumerjarednt1,
I have said before that I don't personally support the AFA boycott.
The post and my previous ones have to do with Ford's near non-reaction and refusal to deal with the boycott's existence and Old Media's near-total lack of curiosity as to ALL of the reasons why Ford is losing share to the other carmakers.
Especially if Ford quality is really as good as the others (it may well be), then you have to look for other reasons why the company is losing market share (vs. losing money). Its either a bad product mix, the AFA boycott, or a combo of both. I think it's a combo of both. Old Media and Ford want to pretend that it's only product-related. That strains credibility.
The Ford Foundation has been totally separate from Ford (and has been run contrary to Henry Ford's stated wishes) for several decades.
What makes a car an "Ame
June 5, 2007 - 08:56 ET by golfingtitanWhat makes a car an "American car"?
Toyota has several LARGE plants in the US. They have 5 major assembly plants in Huntsville, Alabama, Georgetwon Kentucky, Princeton, Indiana, San Antonio, Texas, Buffalo, West Virginia and the new one being built in Blue Springs, Mississippi.
Toyota directly employs around 38,340 people in North America. It has made around $16.8 billion in direct investments in North America. It has in total produced 14.8 million vehicles, 2.5 million vehicles sales (2005), 39.2 million total vehicles sales, and purchased $26.1 billion worth of "parts, materials and components" as of December 2005 in North America. It has 1,745 North American dealers and has given around $301 million as philanthropy to the United States between 1991 and 2005.
For me, just because a company started in another country, doesn't mean it isn't contributing to this one. I'll agree to not buy a car that's assembled in another country and brought here, but it's not like Toyota isn't producing jobs that American's are benefiting from.
So, I won't be buying a Ford because when you buy a Ford, you're supporting the Homosexual agenda by giving them your money. It's no less than personally signing a check and sending it to them.
I'm not slamming you, or anybody that blindly buys "only American". I use to be one of 'em.... until I realized that "American car" means "built in America". And Toyota's are.
And I think Toyota's ruling the roost right now because of their fuel mileage.
I disagree, Toyota rules the
June 5, 2007 - 09:03 ET by sarcasmoI disagree, Toyota rules the roost on quality IMO. Take a look at this.
JMR
sarc
June 5, 2007 - 09:06 ET by Cool ArrowI only own 3 Toyotas. Had to get rid of the 4wd Tacoma with 196,000 miles after I rolled it.
Yeah, I own a Civic, but I lo
June 5, 2007 - 09:11 ET by sarcasmoYeah, I own a Civic, but I loved the Hilux, which = "Tacoma" in the USA, in Panama. Nice, tough trucks that aren't too big or expensive to run.
JMR
Industrial Disease
June 5, 2007 - 09:16 ET by Cool ArrowThe caretaker was crucified for sleeping at his post
Theyre refusing to be pacified its him they blame the most
The watchdogs got rabies the foremans got fleas
And everyones concerned about industrial disease
support the boycott
June 5, 2007 - 16:06 ET by LionKingI do support the boycott. If a company is going to be an activist for an agenda opposed to my beliefs, I will boycott. Also, I try to buy US Made goods...having said that, I bought a Nissan Titan last year...built in the USA.
As for Windows...I use windows at work because that is the company standard. I use Linux at home and will switching to Apples OS-X Leopard this fall. This is more of quality stance than a boycott, but it is a convenient upside also.
What the heck this has to do
June 5, 2007 - 21:17 ET by M J BWhat the heck this has to do with Liberal bias I will never know!
The fact remains that Ford vehicles are not economical on fuel & their parts prices are too high. Ford can only blame themselves.
Last month I bought a GMC truck for business & a Pontiac car for my wife.
Both vehicles ,I consider, competitive to the excellent Japanese products.
My GMC truck was cheaper than it's Japanese couterpart (Tundra) & is more economical on fuel.
They just don't get it...
June 5, 2007 - 08:20 ET by goldenthroatGeorge Pipas and his cronies at Fix Or Repair Daily - Found On Road Dead - just don't get it, do they? Their sales are plummeting yet they continue to think they can stay afloat by supporting left-wing causes and now the backlash is being felt all over the country.
AFA has spoken and Ford refuses to acknowledge even to the slightest degree that, maybe, just maybe, the boycott is taking hold and just might be affecting their sales.
On top of that, the Ford plant here in northeast Ohio is shutting down as a result of Ford's incompetency with hundreds of workers losing their jobs. Is it any wonder sales of foreign cars are up?
My daughter and son-in-law owned a Windstar minivan that was one major headache after another. Now they own a Toyota Rav4 and love it.
All I know is my Mercury Tracer will be the last Ford product I will ever own.
Never dance on an empty stomach unless it's a liberal.
Go Cavs - Beat the Spurs!
Well the people in the GOP do
June 5, 2007 - 08:34 ET by USA4freedomWell the people in the GOP do not get it either. 40% drop in donations= we are racist.
These are the boys of Pointe du Hoc.
Ronald Reagan- 40th Anniversary of D-Day
I am glad that you brought th
June 5, 2007 - 08:58 ET by jdhawkI am glad that you brought this to our attention. And, equally, it is good to know there are organizations such as the AFA that are helping to fight this growing trend in corporate Amercia. Nevertheless, corporate "diversity" across America is a sweeping tide that is fueled by the threat of legal actions by individuals and backed by gay, lesbian, and transgendered groups. All one has to do is pick up any month's edition of the magazine, Diversity, to know that threat is real and is costing our corporations millions of dollars. A boycott is an annoyance, law suits are real. If this is to stop, legislation must be in acted to stop the law suit bleed. Fat chance of that with the dumbocrats in charge.
Be that as it may, neither your article, the AFA web site nor any of their links support the casuality of reduced sales on the part of Ford due specifically to this boycott.
By the way, I think that the quality of Ford cars is the equal of any made. I drive a Ford Mustang GT. It's the car that I could never afford as a kid. It's great!
Causality
June 5, 2007 - 09:02 ET by Tom Blumerjdhawk,
It's next to impossible to prove causality.
FWIW, a Ford dealer group in the South last year sent an open letter begging Ford to deal with the boycott because it believed that it is hurting their sales.
IMHO the problem Ford is havi
June 5, 2007 - 09:25 ET by jay_1975IMHO the problem Ford is having is inabiltiy to match the styling of many new vehicles. The Ranger hadn't changed for well over a decade. The Focus has a rally version that you can only get in Europe, in Australia they sell a four door muscle car called the Falcon and you can find four door Rangers everywhere except the US. If Ford were to release these three vehicle in the US their sales would most likely surge. As it is, the F-150 and Mustang are their real hot items because the look good and have a long history behind them. The 500 was a flop so they plan to rename it the Taurus in hoping to reclaim their dominance of the family sedan market like in the late '80's and early '90's. One other thing; wouldn't the MSM be all over the AFA (a conservative group) boycotting and hurting a US company? Seems that story would fall into the liberal agenda.
MSM
June 5, 2007 - 10:09 ET by Tom BlumerI would guess they're concerned that the more people know about it and why it's taking place, the more people might take part in it.
That might explain why it's buried in an NYT blog and not on the NYT's business pages or covered as a Culture story in the paper itself, where it might get picked up as a national story.
If it is true...
June 5, 2007 - 09:26 ET by goldenthroatjd,
If that is true, then even their own dealerships are getting worried. Like I said - Ford just doesn't get it!
F-150
June 5, 2007 - 10:26 ET by mikebromoHaven't had a problem with my 98 F-150 except they do not make the kind I have anymore. I have a regular size cab and they only make extended cabs. I'll be driving it for another 9 years.
Ford started to go downhill about 1992 when they made the made Alex Trottman from England the CEO and was replaced by the Australlian Jaques Nasser. After Nasser was fired the enviromentalist Billy Ford became CEO and was paid $1.00 a year, because that was all he was worth.
As a Ford retiree, it is really sad to seeing this once great Company caving in to all of this PC.
Ford boycott
June 5, 2007 - 13:30 ET by j17ghsThanks for writing on this topic, Tom. If two Marxists (i.e., socialists masquerading as U.S. Democrats) held a boycott against an American cause or corporation, it would be big news for months. Marxists created the so-called race riots in Detroit in '68 and have since set about ruining America's once-great industrial base by placing agitators and activists in city and regional government (under the guise of being the "good guys" who are seeking only racial equality but the real racism was in the South, perpetuated by Democrats, and they don't care about that).
Many people in Western states also boycott Ford because the company donates to so-called environmentalists who take away property rights from ranchers and farmers. As was the case in Detroit, so-called environmentalists are just Trojan horses for anti-U.S. hatemongers funded and protected by the ACLU and Soros et al.
Ford
June 5, 2007 - 14:13 ET by Tom BlumerI don't want them to fail, but they're doing everything in their power to make it happen.
In case this was missed the company sent a pre-election memo to all salaried employees, which AFA saved, that referred employees to ballot.org, where readers were encouraged to vote down pro-marriage amendments, support minimum wage measures, etc.:
http://www.afa.net/a...
Ford is wasting valuable time and resources on these things at the worst possible time.
Does anyone here really think
June 5, 2007 - 15:09 ET by ferrarimanf355Does anyone here really think that this childish boycott is doing anything? Have you been to a Ford dealer recently? Aside from the Mustang, there's not one car at a Ford dealer that I want to be seen in. Combine that with business decisions that are head-scratching at best, and I think that their sponsorship of homosexual events is a non-issue. This boycott will fizzle out faster than the Disney one.
Uzumaki/Ayanami '08. Because a ninja and an Eva pilot can govern the nation better that what we have now...
Ford
June 5, 2007 - 16:49 ET by Tom BlumerIf Ford really has lost 100,000 sales valued at $2 billion because of the boycott (see justification for the estimate in the post), that's quite a "fizzle."
another driveby by edselman
June 5, 2007 - 18:26 ET by vrwc13another driveby by edselman
That so ferrariman? Quick t
June 5, 2007 - 18:04 ET by vrwc13That so ferrariman? Quick to throw out "facts" which are truly only your opinion...9 years a fizzle? Check it out edselman...
http://www.afa.net/disney/
face pile of trials with smiles