Monday, June 27, 2005

I come back from my trip to this?

This is from last week's Automotive News
Ford Motor expected industrywide SUV sales to slide. But the depth of this year's decline is jarring. Ford Motor executives blame gasoline prices that soared to $2.30 a gallon this spring.

'With gas at $1.80 per gallon, like it was a little over a year ago, we'd have a very different picture here at Ford,' says Steve Lyons, Ford Motor group vice president of marketing, sales and service. 'Our share would be up, and we'd have quite a different financial picture as well.'

The plunge in SUV sales is one of several head winds blowing the comeback off course. CEO Bill Ford calls it a 'perfect storm of external factors.' With sinking retail share, spiking commodity costs and ever-fiercer price competition...
"Perfect storm of EXTERNAL FACTORS"! Does that mean that considerations for an increase in steel prices, stronger competition, or increasing gasoline prices are not an endogeneous part of Ford's decision making process? I thought that managers learned something called as scenario analysis from experience of Shell during the oil embargo more than thirty years ago, and planned accordingly. Should I be outraged, or should I laugh at my naiveness?

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