US Ford's success tops industry wish list

[phillyc]

http://www.detroitnews.com/apps/pbcs...77/1148/AUTO01

The headline jumped off the page: "Ford Fusion is hybrid champ."

Now that's what we're talking about, Detroit, a new model coming from the Motor City that potentially outperforms, outshines and out-greens the foreign-owned competition -- and stands as an incontrovertible rebuke to the Detroit-can't-do-it crowd in Congress and around the country.

"The buzz you see -- that Ford's different, they've got a plan, they're working it" -- is exhilarating to Ford Motor Co. CEO Alan Mulally, he told me Wednesday. "I still believe we're one-and-a-half to two years ahead of where anyone thought we'd be. The only thing we're fighting is the external situation" of an economy slipping deeper into recession and the possibility of rival General Motors Corp. ending up in Chapter 11.

Yes, today is Christmas Day. Yes, we're all beyond weary with talk of bankruptcy and bailouts, haircuts for bondholders and concessions for the United Auto Workers, elimination of brands, closing of dealers, shuttering of plants and central control of a business that government thinks it understands. But doesn't.

So here's a Christmas wish list for an industry poised to enter what's arguably the three most pivotal months of its 100-year history:

First, that Ford's we're-different-from-the-rest schtick will stand up, will be bolstered by new products to be launched next year and will gain traction among would-be buyers. More, that Detroit's No. 2 automaker will avoid being forced to access federal money and to accede to silly political conditions driven more by politics than business.

Second, that GM will execute the most crucial business plan in its post-war history without surrendering its independence or destroying the underlying value of its remaining brands. No simple task, that. Rick Wagoner & Co. are pledged essentially to deliver a bankruptcy-style restructuring outside of bankruptcy -- the final chance to answer legions of skeptics.

Third, that someone in the new Democratic Congress or the Obama White House will realize the absurd folly of dictating product decisions for Detroit's automakers with no regard for market demand or oil prices. Won't work, unless the goal is wanton destruction of taxpayer capital to score points with narrow special interests (which it partly is).

Fourth, while we're on Washington, that United Auto Workers President Ron Gettelfinger will realize that playing the victim card in the can-we-avoid-bankruptcy talks will be a loser in the Bigger America. Blaming the meanie GOP won't help his union or Detroit's beleaguered two -- GM and Chrysler LLC -- stay alive.

Fifth, that Congress and Team Obama will consider tax incentives for the purchase of new cars and trucks in the massive stimulus package now in the works. If the goal is to spur economic activity -- and it is -- selling more metal would help the automakers, ease the burden on the federal loan lifeline and juice local economies across the country.

Sixth, that the deep troubles afflicting Detroit's auto giants will prod Michigan Gov. Jennifer Granholm and the state Legislature to get serious about structural reform come January. However, when the automakers emerge from this crucible -- and they will, in some form -- the state's revenue and per-capita income outlook will be dramatically different than it is now, let alone what it was.

Finally, that the wags outside the Detroit Bubble would remember that those facing this Grand Reckoning are real people, too. They have children, mortgages and dreams; they've been poorly served by leaders who didn't lead, who denied the reality of their predicaments, who mostly avoided radical change until they had no choice.

Reveling in their discomfort is the worst kind of Schadenfreude, especially at a time of year when joy shouldn't come at the expense of others.

Daniel Howes' column runs Tuesdays, Thursdays and Fridays. He can be reached at (313) 222-2106, [email protected] or detnews.com/howes.