Ford: steady hand and good products give its dealerships something to crow about

Nobody over at Jim Burke Ford is claiming the recession is about to end, but there is an undeniable sense of optimism about the direction Ford Motor Co. is heading under new CEO Alan Mulally. Ford is turning out some terrific cars (read my earlier post on the Fusion hybrid here) and its decision to reject federal bailout funds has turned into a huge public relations windfall. (Before I go on, an anonymous "commenter" on this blog earlier accused me of hyping the Fusion because I likely owned a Ford. For the record, I drive nothing but Toyota products and have for years, but I'm an unapologetic cheerleader for local companies like Jim Burke Ford and am thrilled that Ford Motor Co. is making a comeback.)

So when I got an email today from Burke marketing czar Kyle Northway about a story in Fortune magazine about Mulally and his efforts at Ford, I was eager to open the file. You just have to love the common sense that Mulally has brought to Ford, as seen in this excerpt from the story (full story available here):

"I arrive here, and the first day I say, 'Let's go look at the product lineup.' And they lay it out, and I said, 'Where's the Taurus?' They said, 'Well, we killed it.' I said, 'What do you mean, you killed it?' 'Well, we made a couple that looked like a football. They didn't sell very well, so we stopped it.' 'You stopped the Taurus?' I said. 'How many billions of dollars does it cost to build brand loyalty around a name?' 'Well, we thought it was so damaged that we named it the Five Hundred.' I said, 'Well, you've got until tomorrow to find a vehicle to put the Taurus name on because that's why I'm here. Then you have two years to make the coolest vehicle that you can possibly make.'?" The 2010 Taurus is arriving on the market this spring, and while it is not as startling as the original 1986 Taurus, it is still pretty cool."

Photo of Alan Mulally courtesy of Fortune magazine.

Obama's gift to car buyers: deduct the sales tax

Kyle Northway over at Jim Burke Ford sent me an email reminder about a valentine in the Obama stimulus plan that directly benefits car buyers: purchase a new car in 2009 and you can deduct the state or local sales or excise taxes. There are of course income restrictions (if you make over $250,000 a year, forget it) but the local car dealers are hoping this provides a much needed stimulus to car sales, which have been just awful. Plus, as Kyle correctly notes, buyers can save even more if they avoid the increases in the state sales tax (effective April 1) and the increase in the vehicle license fee starting May 19. Kyle says the deduction is limited to purchases up to $49,500, which is more than enough to buy you a mighty sweet Ford over at the Jim Burke lot. The local guys certainly can use a boost: In February GM, Ford and Chrysler saw sales drop 52.9%, 48.4% and 44% respectively. The imports didn't fare much better, with Toyota down 37.3% and Nissan down 37.1%.

It's hunker down time for Bakersfield business leaders; wondering when the recession will pass

They say misery loves company, and there's plenty of company in the misery club during this recession. Talk to any business person or executive in town and the refrain is similiar: "we're hunkering down" until things improve. And the consensus seems to be that instead of a recovery in 2010, it may be 2011 or 2012 before things get appreciably better. Consider:
* Talked to Bruce Freeman, president of Castle & Cooke, who told me the company is sitting on some prime land in the Central Valley and has all the permits pulled ready to develop but simply can't until things get better. Castle & Cooke is singularly responsible for some of the highest end developments in Bakersfield (think Seven Oaks and the Marketplace) and has been forced into a sort of semi hibernation waiting for the storm to pass.
* Over at Jim Burke Ford marketing czar Kyle Northway is encouraged that Ford - among the Big Three - is best poised to make a recovery. And it doesn't hurt that the family-run company, now led by Dan Hay, takes a long-term view and is not whipped by the winds of a need for short-term profits.
"I can tell you the employees at our dealerships have come to realize just how good our management team and especially Dan Hay, our company president, really is with counting the beans and working out plans that fit the economy," Kyle told me.
* Local Realtors, including high-end residential expert Mary Christiansen, likewise have hunkered down but see some signs of thawing as sales pick up despite lower prices.
These are all quality companies and quality business people who will certainly ride out this recession, but not without what Mary calls "some pain." But she adds with characteristic optimism: "It will get better!"