Ford's CFO is tired of hearing that automakers are going to screw up
Scott Olson / Getty Images
Namely, that they'll fritter away their profits on incentives, push vehicles into fleet sales, and avoid preparing for shifts in the consumer demand by keeping too many pickups and SUVs in the manufacturing mix.
"Show me discipline ever in this industry!" said American Honda Motor executive John Mendel in an interview with Business Insider at the New York Auto Show.
"It's never there. Everybody says, 'We learned,' and then six months later its a junkie right out of rehab."
Mendel's perspective isn't shared by Ford CFO Bob Shanks, who talked with Business Insider right after the automaker strong first-quarter earnings were released on Thursday.
"That thesis has been out there," he said. "But it hasn't happened."
"We can deliver fantastic performance, and we have opportunities for improvement outside North America. So I don't buy that. "
Shanks was alluding to Ford's business in Europe, which has been strengthening over the past year, as well as operations in South America, where political and economic turmoil has undermined Ford sales. Ford doesn't expect the situation there to improve, but on a conference call with analysts after earnings were released, CEO Mark Fields highlighted the company's better outlook for Argentina.
Shanks also showed some displeasure that the "no discipline" thesis continues to circulate, and that investors have stubbornly refused to reward Ford for solid financial results over the the past few years. The stock barely moved on Thursday - up 1% to $14 - despite Ford turning in a record quarter for profits.
"It's frustrating," he said.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Audi to hike vehicle prices by up to 2% from June
- Kotak Mahindra Bank shares tank 13%; mcap erodes by ₹37,721 crore post RBI action
- Rupee falls 6 paise to 83.39 against US dollar in early trade
- Markets decline in early trade; Kotak Mahindra Bank tanks over 12%
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema