Ford Motor Co.’s big plans to close plants and lay off up to 30,000 workers by 2012 doesn’t go far enough fast enough, said Fritz Hitchcock, director for California Motor Car Dealers Association.
“They need to do more right now,” he said.
Swifter cuts need to be made, according to Hitchcock, whose Sacramento trade group represents dealers in Orange County and across the state.
Hitchcock has a Ford dealership himself. It hasn’t been profitable in about three years, he said.
Fortunately for Hitchcock, he’s got three Toyota dealerships, one Volkswagen and one BMW lot.
“We cope by cutting expenses as much as we can,” he said.
The first things to go,people, advertising and promotion, Hitchcock said.
“Then we hope and pray every day for new product that will excite the customer,” he said.
Ford has about 225 California dealerships, compared to Toyota’s 130.
“Ford took its eye off the ball on the car side,” Hitchcock said.
The automaker fixated on sport utility vehicles and lost market share.
Meanwhile, South Korean, Japanese and other automakers swooped in with great cars.
Kyle Sullivan, general manager of Villa Ford of Orange, said the plant closings and layoffs are good first steps.
He’s looking at the bright side: “Ford is still a very strong company.”
But the No. 2 U.S. automaker’s declining sales are just the beginning.
High pensions and health benefits for retirees is going to haunt Ford for years to come.
Short of bankruptcy, those costs are unavoidable, Hitchcock said.
And Ford isn’t likely to file bankruptcy, he said.
The company has plenty of cash. And, unlike airlines, people aren’t likely to buy from an automaker in bankruptcy.
“They’ll get better,” he said.
Most of Ford’s products this year are tweaked versions of old designs.
The only new model expected in April is a “crossover” SUV and car combination called the Edge, introduced at the Detroit auto show.
“It looks real good,” Hitchcock said.
Ford expects crossovers,smaller SUVs with better gas mileage,to outpace larger SUV sales this year.
Crossovers surpassed 2 million U.S. sales last year. SUVs, with 27% of the market share, made up the largest auto segment in 2005.
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Sketch of Aston Martin DBS: making big screen debut in “Casino Royale” |
Secret Agent Car
Bauer Aston Martin in Santa Ana and other dealers of the British sports car will have the ultimate product placement come November when the James Bond film “Casino Royale” hits theaters.
Details of James Bond’s new ride, the Aston Martin DBS, are being kept under wraps. Aston Martin Vanquish was the star of the last Bond movie, “Die Another Day.”
Shopping Stars
Stars of the retail world are set to be at South Coast Plaza in February.
On Feb. 16, designer Giuseppe Zanotti plans to appear at his shoe and accessory store, which opened in November.
Zanotti is known for designing “red carpet” shoes with touches of gold, jewels and other fancy embellishments. The shoes go for about $400 to $700. Wearers include Naomi Campbell and Beyonce Knowles.
Isabelle von Boch appears Feb. 18 at Villeroy & Boch, a tableware store.
She will offer tips on dinnerware accessorizing.
Saks Fifth Avenue plans to hold a bridal salon with fall 2006 collection previews of Ulla Maija, Kenneth Pool, Amsale and Vera Wang.
Roth Goes Retail
Newport Beach-based Roth Capital Partners LLC plans to feature several retailers at its 18th annual Orange County Stock Conference on Feb. 20 to 22 at the St. Regis Monarch Beach Resort & Spa in Dana Point.
Some of the retailers include: Children’s Place Retail Stores Inc., Claire’s Stores Inc., Dress Barn Inc., DrugMax Inc. and Peet’s Coffee & Tea Inc.
Wonderland on TV
Wonderland Bakery at The Bluffs in Newport Beach was featured on “Good Morning LA” last week as having the “Best Cookie.”
The bakery, headed by a mother and daughter team, Allyson Ames and mom Sondra Ames, also is being featured as the “Coolest Bakery in Southern California” on Feb. 10 at 10:30 p.m. on Fox.
