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Ford forced to weather the storm through 2008
By now, everyone knows that Ford Motor is in trouble in North America, largely because of a product line that missed a rapid shift in consumer preferences, but there's a limit to how quickly the company will be able to restructure to meet the challenge, according to Ford's president for American operations, Mark Fields.Fields says that Job 1 for the automaker is stabilizing the business, while rolling out carefully targeted new vehicles aimed at key market segments, like Ford's new Edge crossover. While Ford sticks to a carefully measured plan for upgrading its product line, analysts predict that things are going to get worse before they get better, with the new models currently in the pipeline not having a significant impact on the automaker's results until 2009. Ford itself is predicting that its U.S. market share will drop from its current 16 percent to around 14 percent in the next few years.
Nonetheless, Fields says there are no plans to rush new models to market, citing the risk that a crash development program might compromise product quality. Meanwhile, the company is just gearing up for a massive employee buyout program that will eliminate 30,000 factory jobs.
In a masterpiece of understatement, Fields told reporters in San Francisco yesterday that "The next number of quarters will be interesting, given what we are trying to accomplish."
For those who missed it, check out what we believe Ford's lineup should have been had the automaker gotten out in front of the shifting marketplace.
[Source: Reuters]
Reader Comments (Page 1 of 1)
Dan 2:21PM (10/17/2006)
Ford just needs some PASSION for great cars!
They have all the resources in place for success - they just need to let it fly! Give your customers some great cars. If you build them, they will come!
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That One People 2:31PM (10/17/2006)
Management needs to be bitch slapped and told that it needs to build its concepts.
It was sad walking through the halls of the Product Development Center during my internship and knowing that 99% of those clay models and drawings wouldnt be turned into a car. If Ford built those ideas (or somewhere close), they would be in a better situation. The designers and the engineers have the skills. Its management that wants to pinch pennies and produce what is out right now...
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Steve 2:43PM (10/17/2006)
I think Ford needs to create a clear brand identity. The more successful of the car companies have this.
Maybe they should become the bold, American, sporty company. Think about it, they already have some of the goods to work with by using Mazda and/or Volvo parts and platforms. They already do in many cases. And in many cases, these cars are considered to be some of the sportiest in their segments even if they aren't class leaders. Take a look at a comparison test of a Fusion or Focus, and they are usually praised for their handling and sportiness.
I say they take this farther, and become the Mazda of American car companies. They don't need to sell the most cars. Let GM and Toyota have that fight. They should sharpen the edges of some of their existing products (Mustang, Fusion, Focus, Edge, etc.) and make them even bolder and sportier. Make Lincoln a direct competitor to Cadillac, and leave Mercury for the old folks who want cushy rides. You don't need 2 brands for that.
This could be expaned even further by letting the SVT boys be even more involved. Bring out some exciting products, and people will want to buy them no matter what name is on the hood. You don't have to sell the most cars to make money. Ask Porsche.
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Howard Kerr 4:31PM (10/17/2006)
"Maybe they should become the bold, American, sporty company."
The problem for ALL the car companies seems to be in their defining bold and also sporty. Ford was lucky in the 80s with the first Taurus and the "areo" T-Bird/Cougar, but nearly every time Ford went bold (in the U.S. AND overseas) Ford's customers balked. In the 90s Ford came out with a replacement for the blocky crown Vic. Folks supposedly wouldn't buy Ford's flagship model because it had no traditional grille, just a Ford blue oval on the front. The 2nd gen Taurus was VERY bold...and it nearly sank the division. As for sporty, no other car company builds a DIRECT competitor to the Mustang.
I could be wrong, but I think what has hurt the American car companies is that they ignored their strength:the ability to get a wide array of stylish
vehicles into customers hands, quickly, AND they succumbed to penny-pinching at the expense of quality once they fell behind the curve as their market started to slide from their grasp.
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Richard Warren 6:44PM (10/17/2006)
"I think Ford needs to create a clear brand identity"
Ford has a brand identity, it's called Ford. Ford represents the basic American car. Anyone old enough to remember the "Low priced three?" Ford (always first in the name game by the way) Chevrolet, Plymouth. Roots= dependable, low cost basic (if uninspired transportation, other than a halo car or two) That's a brand identity, The flying F of Ford and it's blue oval are known worldwide.
All Ford really needs to do is get back to business basics, build nice looking, reliable cars, with a little more spirit than the Japanese or Korean's.
Job One. Job Done.
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whofan 9:56PM (10/17/2006)
"3. I think Ford needs to create a clear brand identity. The more successful of the car companies have this."
I agree, Honda and Toyota stick with their model names. As was stated here sometime ago, Ford dropped the Taurus name. Ford could have gave Taurus some new iron
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Brian 4:35PM (10/17/2006)
I'm hearing good things about the Edge, and Edmunds gave a good review to the the Lincoln MKX with the new 3.5L V6. I'm curious to see if October sales build on the [tiny] improvement in September. If the Edge launch is a success, I could see sales climb.
It's still going to be a while before they are profitable again, but a continued build in sales is a big step in the right direction.
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Leo 12:37PM (10/18/2006)
I agree with #1
all those engineers and designers can do a lot more than whats out today, it's the $$$ that Ford allows them to spend that holds them back
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Andy 6:26PM (10/17/2006)
My family used to buy Fords. But bad experiences with Ford quality pushed them to buy Toyotas instead. Five years ago, none of my relatives would have considered a Ford. But since then, they have considered Fords when car shopping.
My uncle, a courier, didn't mind checking out an Escape, liking the conservative looks and compact size. He was a fervent anti-Ford fellow who loves Toyota. He loves the new Mustangs and the GT. My grandparents have been considering a new sedan, having a fondness for the Avalon. But my grandfather, the ultimate skeptic, actually liked the Fusion's looks and price. So, there has been some headway for Ford in improving its image with my family.
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jimbo 9:43PM (10/17/2006)
What's the worry? Toyota is bringing 2000 new jobs to some farmer's field in Outer Bumf&ck, USA. They are only going to get $300 million in tax breaks and the new employees will be paid at least 50% of the wages and benefits of the laid off Ford workers. Relax America. Let Toyota "Move Us Forward".
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