Today the global automotive industry faces a brand new set of challenges as well as opportunities. Recent demand for cars, SUV’s and light trucks dropped significantly during the past year as a result of several significant factors including:

o Higher prices at the gas pump
o Deteriorating consumer confidence
o Deterioration in the global economy
o Higher unemployment levels
o Tightening credit requirements
o Lack of availability of credit

These factors have only recently exacerbated the decline of the US-owned automotive companies. For the past twenty five years or so, increased competition, pricing pressures, higher fuel economy requirements, improved quality level from some foreign automotive manufacturer have hurt the US companies’ standings in the global market place. Ford’s US market share has declined from about 25 per cent to about 15 per cent. Since 1982, GM’s market share has deteriorated from about one half of the US market to roughly 25 per cent.

To put this drop into perspective, based on unit sales, Ford used to be the number two automotive manufacturer in the world. By 2007, Ford ranked fourth behind GM, Toyota and Volkswagen. In 2008, Gm slipped into the number two position behind Toyota. Finally, the domestic US market used to be the largest in the world. Today, that position has been taken over by China.

Ford, however, is financially in better shape than the other US automotive manufacturers in today’s environment. By structuring to “spin off” some of its parts businesses and starting to refocus on its core business of manufacturing vehicles, Ford began laying the groundwork to solidify its business base. Eventually, by selling off some of its parts manufacturing operations as well as some of the brands (i.e. Aston Martin, Jaguar and Land Rover) it had acquired earlier, Ford gained cash to be used for other purposes such as funding the development of new vehicles and new technologies required for them to become more competitive and to meet customer needs.

It appears that these actions have generated the cash to help them bring out a stream of new vehicles with enhanced product content, and with product quality equal to or better than its competitors. In addition, Ford remains the only US-owned automotive company that did not have to go begging to the government for “bailout money”. And that’s good for Ford, its shareholders and us, the taxpayers.

Mr. Newman has roughly 40 years of industry experience – 28 years as part of the Ford Motor Company management team, and more recently, as President and COO of the Strategic Alliances Consulting Group, Inc. His business background encompasses a broad spectrum of experience in various disciplines including purchasing, finance, product planning, export planning, business planning and international business development.

During his last 10 years at Ford Motor Company, Mr. Newman successfully negotiated 46 licensing agreements in 12 countries, 9 joint ventures in 4 countries, 6 acquisitions and 2 divestitures. In his capacity as President and COO of Strategic Alliances, in addition to continuing to assist clients with their acquisition and divestiture efforts, Mr. Newman developed a strategic and business planning process which was implemented successfully at many automotive supplier operations in North America and in Europe. This process also was successfully implemented at a charitable organization and several small entrepreneurial business enterprises.