What Kerkorian wants forFord Motor Company

Let's stipulate that Kirk Kerkorian is sincere when he says he plans to keep quiet about Ford Motor Company after his Tracinda Corporation finishes buying up 20 million additional common shares of the automaker. Let's accept that Tracinda, which will own 5.3 percent of Ford, approves of the job Alan Mulally is doing, that Kerkorian just wants to have a bit of say at the struggling automaker by getting harpy Jerome York a seat on the Blue Oval's board. Let's figure that he'll hold on to the stock long enough only to make another small fortune.

BMW research vehicle | 250 Cars -- Owned By One Guy



By the time his tender came due earlier this week, Kerkorian had offers from Ford stockholders to sell him 1 billion shares. And why not? Stockholders will get a 39-percent premium over Ford's current, $8.50 share price for 2 percent of the stock they own, Brent Snavely reports in the Detroit Free Press. (So if you own 100 shares and responded to Kerkorian's tender, you'll get $17 from Tracinda for two shares, instead of the $12.24 they were worth.)

You'll remember that within a week after Kerkorian announced his intentions and said he would not mess with Ford, York told Automotive News that the company should get rid of Volvo and Mercury. Surely, then, York will have something to say when he gets a seat on the board.




Forthwith, a special preview of Jerry York's first address to the FoMoCo Board. Or, ah, what he should say:

Keep up your corporate downsizing: CEO and President Alan Mulally seems to understand the U.S. market is becoming like the Western European market, with no one automaker owning more than 18-percent share. And Ford is likely to settle in the 12- to 14-percent range. My other points may help guide you on how to become healthy with little more than a niche-market share.

Fiesta should become Ford's bread-and-butter car: In North America as well as Europe. Good, cheap transportation is what made the company, and it will serve the company well, even if U.S. rivals continue to concentrate on bigger cars.

The F-150 should be absorbed into the Super Duty line: This is the model the company has relied on for more than 30 years, but those times are over no matter what you try to do. Let the macho big-truck guys bitch and moan while you make a smaller, more efficient EcoBoost V-6 F-100 your main truck. It'll keep Toyota off-kilter, and it'll pay off well in the long run.




Don't overemphasize crossovers the way you overemphasized SUVs for 15 years: Escape, Mariner, Edge, MKX, Flex, and a Lincoln Enclave-fighter based on the Flex should be all a pared-down FoMoCo needs.

Sedans: In the U.S., Fords Fiesta, Focus, Fusion and Taurus, Mercurys Milan and Sable, Lincoln MKZ, MKS, and a rear-drive flagship within five years, should cover it.

The next Mustang should be markedly smaller: About the size of a 3 Series sedan. With IRS. EcoBoost fours and V-6s. Sorry, V-8-lovers, this is the CAFE-dictated wave of the future. You can use the new Mustang platform for a new Lincoln sport sedan, too. And if you design and engineer it right, with the kind of handling no Mustang has ever had before, no one will think "Mustang II." Like BMW with its new M3, those willing to pay for a Shelby GT 500 should still get a V-8.

Design leads: Since most Ford models need to become "global," Martin Smith should take the lead on cars and crossovers Fusion-size and smaller, while Peter Horbury leads on big cars and crossovers, Mustang and pickup trucks.





Focus should never be on two platforms, globally, ever again: I understand that because of the market and cost-of-living, Ford of Europe can charge much more for such small cars than North America can. We'll have to make up the difference in North America with locally supplied interior bits, etc. The idea of small car as cheap car is quickly changing in the U.S., anyway.

I understand the usefulness of Mercury: L-M dealers are selling Milans and Sables to consumers who would never consider Fusions or Tauruses. As long as you don't want to cheapen Lincoln with $20k models, the cost of "differentiating" Mercs from their Ford counterparts remains minimal and worth it.

Volvo has some use, too: It's not making Ford any money, but it's a great image brand with upscale props here and in Europe. You should continue studying its sale, but given how little you got to unload Aston Martin and Jaguar/Land Rover, don't sell it unless and until you can get real money for it.

I could go on, but really, that's enough. Besides, this is pretty much what you already plan on doing, anyway. Right?

Tires | Cars