Ford's Way Forward: it's a long and winding road
As recent financial results have shown, reviving Ford Motor's North American operations is about more than just downsizing production capacity and increasing efficiency. Disappointing sales results are focusing the spotlight increasingly on Ford's promises of new, innovative products.Ford is in a deep hole, with its minivans out of favor with consumers, only its aging Focus to combat the small car onslaught from other manufacturers, and even its stalwart F-150 pickup under fire from newer competitors.
Ford's problems with B-segment small cars highlight the automaker's challenges. Ford Americas president Mark Fields promised an aggressive attack on the booming small car market segment as recently as his keynote address at this year's Los Angeles Auto Show in January, but Automotive News reported Monday that Ford's current product plans show that new B-segment cars will not debut until the 2010 and 2011 model years. Among other things, Ford is struggling with defining the target markets for its small cars, with options ranging from low-priced, entry-level models to more upscale competitors for BMW's MINI. Or... Ford could simply rebadge a B-segment import, as Chevy did with its Aveo, in which case a 2007-2008 launch is possible.
[Source: Automotive News - sub required]
Meanwhile the Focus lives on, with a restyling planned for the 2008 model year and an all-new model planned for early in the next decade, based on the next-generation European model (rather than the current Euro-spec version, deemed too expensive for the North American market).
With competition looming from Dodge and Chevy, the Mustang will keep its current look until the 2010 model year, when we can expect a restyled version. Bigger engines are planned though, with 6.2-liter and 5.8-liter powerplants rumored to be coming out of Ford's "Hurricane" engine program. Automotive News suggests that Ford may revive the legendary Boss badge for the big-engine models. More nebulous are a Mercury version of the Mustang and a Lincoln coupe based on the pony car platform, both just at the design concept stage.
The bottom line: With product challenges across the board, even the most aggressive new product development program seems likely to find Ford lagging the competition in some market segments, which probably means we can expect further erosion of Ford's market share in North America.
[Source: Automotive News]
With competition looming from Dodge and Chevy, the Mustang will keep its current look until the 2010 model year, when we can expect a restyled version. Bigger engines are planned though, with 6.2-liter and 5.8-liter powerplants rumored to be coming out of Ford's "Hurricane" engine program. Automotive News suggests that Ford may revive the legendary Boss badge for the big-engine models. More nebulous are a Mercury version of the Mustang and a Lincoln coupe based on the pony car platform, both just at the design concept stage.
The bottom line: With product challenges across the board, even the most aggressive new product development program seems likely to find Ford lagging the competition in some market segments, which probably means we can expect further erosion of Ford's market share in North America.
[Source: Automotive News]
Reader Comments (Page 1 of 3)
richard elsbree 6:27PM (7/31/2006)
Does anybody seriously believe Ford will be in business in 2011? Compare the
pathetic commercials by Bill Ford with Diamler-Chrysler's "Dr Z" spots and you
can see part of the problem.
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TriShield 6:29PM (7/31/2006)
Ford has a wealth of great overseas products they could be selling here but don't, why?
The Australian Falcon, Fairlane, and Territory would be good choices, as well as their FPV variants. The European Focus, Mondeo, Fiesta, S-Max, and Galaxy could also bolster Ford's US lineup.
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Petey 6:34PM (7/31/2006)
@2
Most likely because they arent UAW vehicles.
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Aki 7:52PM (7/31/2006)
Way forward = empty marketing-speak. I mean look at the Focus and Ford's aging lineup of minivans. Heck, they got a nice Focus sitting in Europe, the heck don't they bring it here.
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Jack of Shadows 7:56PM (7/31/2006)
There are Fords built in Mexico, in a non union plant, and they are sold in the States.
Let us not forget the Ford LTD's and Merucry Marquis' are built in Canada by the Candian auto union.
Stop knocking the UAW. All American companies build in Mexico and Canada as well.
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donald douglas 7:57PM (7/31/2006)
Dear billy ford, i found the cheapest gas today and it was $3.17 a gallon, if you wait to 2010 or 2011 for a 38 mpg car your screwed ! bigtime, just 2 cars will eat your lunch in sales the "Fit and Yaris" if gas keeps going up ! and both the cars will sell more than your entire lineup of cars combined if gas is still up there with no relief in sight in 2009 or 2010 id say just give up and shut your doors. If your this assinine and stupid that you cannot comprehend that america is buying anything that get's great mpg right now ! not trucks or suvs that cost 70-100 bucks to fill up !
btw billy i had to park the f-150 for the last 6 months and buy a toyota to get good gas mileage cause i have to drive 52 miles a day, the truck cost almost 14 bucks a day, the toyota for only 20 bucks will make it all week, get a clue ! this editorial is comming from a Ford man and has owned 11 ford trucks and vans but soon no more, ill keep the f-150 to tow the camper and boat, but only when i have to !
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Rachel 8:14PM (7/31/2006)
What is ford rolling out next to compete with the imports of the auto world?
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Rachel 8:15PM (7/31/2006)
How will Ford keep up with the auto imports?
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theburn16 8:16PM (7/31/2006)
if you're gonna take a shot at ford for the gas mileage of their trucks, why not remember the fact that the new toyota tundra will get about the same as the f150...and i think you're forgetting that farmers like myself will always buy trucks and if gas hasn't gone down by 2009 people wont care anymore because they'll be used to payin so much for it
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Jeff R. 8:42PM (7/31/2006)
Way Forward my ass- to me it simply seems to be Ford trying to make it sound like they've got great ideas and great products in their pipeline which is very far from the truth. Ford's current product lineup is very boring and unimaginative with all of their vehicles equalled or outclassed by competitors. And Ford lately is not home of "better ideas"- very many of their current vehicles are in need of dire improvement, the company refuses to bring over some of the good product they have in other countries, their model lineups are out of touch with today's market (i.e. too many large SUVs), and their advertising campaigns and "Bold Moves" slogan does nothing to help. Ford must work quickly and dillgently to turn things around before they go into a permanent downward spiral with no chance of recovery.
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TriShield 8:59PM (7/31/2006)
@3
That didn't stop Ford from selling the Mondeo and Focus here in the 1990s, although we're still stuck with that Focus today.
It's also not stopping GM from importing thousands of Aveos, Monaros from Australia, and soon Opels from Germany.
Ford can't afford not to have all their good products here in the US market, the most important one in the world.
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Jay 9:05PM (7/31/2006)
As much of a quagmire that General Motors is in, at least they have a plan. They're slowly chipping away at the problems they've been facing, and I've lately been starting to get the feeling that they're going to come out of their current problems okay. A faster turnaround and some more decisive moves would be nice, but the vast majority of the moves they've made in the last couple of years have been the right ones, and I think they'll at least stop the hemorrhaging of market share and cash sooner rather than later.
Ford, on the other hand, seems to be falling deeper into their hole every day with little hope of crawling back out. The Mustang is great and the F-150's good too, but they have nothing else in their portfolio that shows they're reading the market and giving customers the products they want with the quality they need. They have serious problems with their small car programs in America, and no plans to fix them for years. Their bread-and-butter cars were designed in a heavily conservative uninteresting manner, and are getting an appropriate response from the buying public, and their trucks, while very solid, are falling out of favor due to high gas prices. And I haven't seen much out of Ford other than a fluffy advertising campaign that's purports an image of a company that is completely opposite to reality.
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KL 9:20PM (7/31/2006)
This information is wrong.....In this Months issue of Motor Trend it states that Ford is planning on making a coupe version of the Fusion, and a Lincoln coupe based on the MKZ (previously Zepher)...The Mustang will get all new sheet metal except for the roof in 2008.....not 2010...the car will be less retro insiders at ford say....
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Darrin 9:33PM (7/31/2006)
How about us upstanding americans change our ways look past certain things and help keep american car companys going and keep our fellow americans employed!
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connor 10:11PM (7/31/2006)
fords planning on a coupe version of the fusion then a huge refreshning of the mustang but before that a boss mustang will come, then you have the forth coming lincoln/ford mkx/edge then the fairlane concept production version, revisions to most of there current linup of vehicles including the 500, focus, escape, montego, and freestyle so they do have a plan and there also bringing a b-segment vehicle here in 2008 that i hear of differently
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Tsarmina 10:20PM (7/31/2006)
Hey darrin, you do know that Toyota, Honda, and Nissan make most of their cars in the US don't you?
And GM, Ford and Chrysler make a lot of their cars in Canada. Or are u just one of those Patriotic Dicks who only buy american brand cars even though their not nessicarily american build, and even though japanese brand cars have a lot better quality, power and fuel efficency, not to mention reliability, and most are built in american factory's anyway!!!!!!!!
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Babu 10:21PM (7/31/2006)
#11
The US automotive manufacturing industry is booming. Only Ford and GM are stumbling - for a number of reasons, but basically because they are poorly run. Toyota has 38,000 US employees and 400,000 more at US suppliers. Why not buy a Toyota made by US workers and support a company that responds to customer needs?
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donald douglas 10:43PM (7/31/2006)
gonna take a shot at ford for the gas mileage of their trucks, why not remember the fact that the new toyota tundra
===========================
i was taking a shot at ford for not responding accordingly to market conditions, mpg cars are selling like hotcakes right now and where is ford in all this ? 5 years behind as ususal !
I just like joe farmer need a pickup truck, always have always will for lumber runs and for towing the toys, but i also need to pay for the toys hence a full time job where i dont need a truck to go 52 miles a day by myself hence the toyota that gets me 39 mpg !
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yedkar 11:00PM (7/31/2006)
"help keep american car companys going and keep our fellow americans employed!"
Darrin -
As worthy a proposition as it may seem, your plan to "help keep american car companys going and keep our fellow americans employed!" is in essence counter intuitive. In the their struggle to deal with costs, the only choice left for the Big Three is to outsource their operations to Mexico and China, where UAW’s evil minions cannot reach them, and where labor costs are actually reasonable. Perhaps you should rephrase your statement to the following:
"Help keep Japanese car companies going by keep our fellow Americans employed!"
In other news, even as a Ford fan, I have to concede that Ford is really shooting itself in the knee. On the Bright Side, the next couple years are going to see the launches of Lincoln's range of vehicles. In particular, 2006-2007 will see the debut of MKX, Lincoln’s Aviator replacement based on the Fusion (CD3) Platform; the MKZ, Lincoln’s Zephyr replacement (also using the Fusion CD3 platform); The Navigator, using Lincoln’s U platform (sourced from the Expedition); and the Lincoln MKS, its LS replacement based on the S80’s D3 Platform. All of these vehicles seem reasonably decent, and are based on competitive platforms, so should do well. I can’t say I like the toothy grills on the sedans and the egg-crates on the SUVs, but I must concede that they certainly are Lincoln unique.
On the other hand, save the Fusion, F-150 and Mustang, the Blue Oval is essentially uncompetitive. Note however, that as tantalizing as the prospects of a Euro-Focus may seem, the platform is clearly too expensive for Ford USA. Nonetheless, Ford needs Subcompact (Focus), Full Size (Five Hundred) and Minivan (Freestar) replacements. Its SUV lineup (Freestyle, Escape, Explorer, Expedition) are all reasonably competitive, but gas is going to hit them hard.
Perhaps Ford should punch holes in the floor boards of the 500 and launch it as a Flinstones Special Edition. That way, Ford can add to is already expansive set of Special Editions, claim infinite fuel economy, and improve the car's 0-60. Not to mention the advantages to the buyer, who can now develop the Schwarzenegger's calves.
Luckily for Ford, its investments European investments are actually doing decent. Volvo, Aston Martin and Range Rover are all releasing quality vehicles. Maybe Ford has something to learn from them?
As a fellow autoblogger wrote a few weeks back, “Sadly, Ford’s only Bold Move seems to be jumping off a cliff.”
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theburn16 11:09PM (7/31/2006)
see, now you're getting on ford for not responding to the market but what is toyota doing by going to a less mpg friendly tundra? and then you're gonna compare the mpg on a full sized truck to a car...that makes no sense. how about comparing apples to apples there buddy
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