Ford Carries On by Carrying the Flag at Los Angeles Auto Show
November 19, 2008

By Danny King

LOS ANGELES - While the leaders of the three largest U.S. auto companies took a united stand in Washington when pleading for $25 billion in loans from the U.S. government, Ford Motor Co. President of the Americas Mark Fields appeared to take a more independent approach Wednesday at the Los Angeles Auto Show 2,700 miles away.

With General Motors and Chrysler noticeably absent from the show, Ford's didn't appear to scrimp on its display, which took up an entire wall at the L.A. Convention Center's West Hall and included about a dozen Mustangs in addition to its new gas- and hybrid-powered Ford Fusions.

"I can't speak for the rest of the industry. All I can say is that, through the history of the automotive industry, through good times and bad, it's great products that separate the winners from the losers," Fields said Wednesday. "And we're here to celebrate great products."

Ford tried to appeal to both the fanatical and practical by following a couple minutes of tire-screeching, engine-roaring footage of its new Mustang with a detailed explanation of why its 2010 Fusion will be superior to the Honda Accord and Toyota Camry in both fuel economy and engine performance. Between the new Fusion and Ford Escape, Ford said it will be the largest producer of U.S. hybrids within two years.

Ford's presence at the show reflects a company that has fared slightly better than its U.S. competitors, according to Jessica Caldwell, manager of pricing and industry analysis at Edmunds.com. The second-largest U.S. automaker's third-quarter operating loss, excluding some  one-time items, was $2.98 billion, compared to GM's $4.2 billion, while its October sales fell 29 percent from a year earlier, compared with GM's 45 percent plunge and Chrysler's 35 percent reduction.

So while GM and Chrysler's absence may reflect a show of financial restraint consistent with their appeal for government funding, Ford, which said this month that its retail market share is its largest in two years, opted to put on a brave face by keeping its exhibition at the show.

"They are doing a bit better," Caldwell said of Ford. "It would've been nice to have Chevy at the auto show, but they have to send a core message to Washington."

Still, flashy displays notwithstanding, Ford's not immune to the realities of an economy that will force it to temporarily close nine North American plants in the fourth quarter while cutting 10 percent of its North American salaried positions as well as another 2,600 hourly jobs.

The company also said Wednesday that it would raise about $540 million by reducing its stake in Hiroshima, Japan-based Mazda Motor Corp. to 13 percent from about 33 percent. The divestment won't affect Mazda's strategy and investment plans going forward, said Robert Davis, Mazda's senior vice president of quality, research and development, at the show.

With the effects of the economy already in place, though, Fields was defiant, if not a little philosophical.

"We'll come out of this as a viable company that will have profitable growth," said Fields. "You can't worry about things you can't control. You focus on the things you can."

Photo by Danny King
Ford introduced the new Fusion at the Los Angeles Auto Show Wednesday.

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