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Technology Stocks : GenRad Inc.(GEN) entering the ADSL market!

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To: Kirce Stojanovski who wrote (33)3/18/1997 9:12:00 AM
From: Jeff Clegg   of 283
 
Kirce,

I don't want to turn this into a Ford thread, but since they are the ones for which Genrad is bidding on the "ADS" contract AKA "WDS", I will share a little more info related to Ford and their current position.

Ford Motor Company loses money on all of their car lines. The only reason that the automotive side of their corporation makes any money is from trucks.

The T-Bird & Cougar are built at the Lorain, Ohio plant. The plan is to increase truck production by having the Lorain plant produce trucks (not sure which lines). The Probe's sales have always stunk. It is built at the Flatrock, Michigan plant. This plant is a joint venture with Mazda. The Mazda 626 and 323 are also built there. There is a possibility that in the future, the T-Bird & Cougar could be resurrected and built again at this plant (watch for EOL-II to be added here if this happens - only 1 out of every 5 cars that is produced here is tested on their test track once it rolls off the end of line)

The Aerostar going away is no surprise.

There is no doubt. Ford is serious about cost cutting. Nothing is sacred any longer. There are rumors that the Automotive Components Division and possibly Process Leadership groups are up for sale. Is Ford trying to model itself off of Chrysler?

Speaking of Chrysler. What company is it that is in the process of developing Chrysler's next generation diagnostic tool for its worldwide dealerships? Are they competing for Ford's business as well? I understand that this too is supposed to be a low cost tool.

The trend in the auto industry is to put as much diagnostics into the powertrain control modules as possible and to minimize the need for off-the-shelf diagnostic tools. This reduces the complexity of the diagnostic tools and hence cost.

Jeff
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