Ford: Restoring Prestige and Honor
The Ford Motor Company, along with rival General Motors, has
been going through a time of severe testing due to concerns
about product quality and relevancy, profits, and long term
viability. The net result is that Ford is planning on closing
numerous plants and will lay off as many as 30,000 employees, a
historic cutback that may only be the tip of the iceberg. Is
Ford finished or will the company be able to regain strength and
compete successfully in the years ahead?
Ford has certainly taken its lumps and for good reason. Profits
in the North American market are nonexistent with losses
actually in the multibillion dollar range. Despite the red ink,
all is not lost for the "blue oval" as the company remains very
profitable overseas. In addition, its three U.S. divisions have
much to offer if some serious changes are incorporated. Here are
my suggestions for change:
Ford -- The strongest division for the automaker is the
one that bears its name. Ford's strength is in its line of pick
up trucks and SUVs. Select car models including the Mustang and
Fusion are also strong sellers. Ford's weakness can be found
with its small car line, the Focus, and with dated models
including the Crown Victoria. Better for Ford to scrap their
small car lines altogether and import cars from Mexico or
overseas. In addition, the company should concentrate on
overhauling the Crown Victoria and introducing an all new Ranger
compact pick up truck. Finally, Ford is getting out of the
minivan business as crossover vehicles, such as the all new
Edge, will replace that category. This latter retreat is wise as
the category is saturated and the expense of developing a
successful new minivan can be diverted to concentrate on shoring
up other product lines.
Mercury -- Many have been predicting that Ford would
scrap its Mercury division altogether. However, among the many
management decisions announced recently indicate that Mercury
will stay. Together with Lincoln, the two brands are weak and
are in need of much assistance. Mercury cars for decades have
been nothing more than reworked Ford models therefore its brand
identity has been diluted. It is time for Ford to help Mercury
come up with a clearer "personality" and a line of vehicles that
are inspiring, not boring. A good start would be to develop a
car all Mercury's own, such as a retro Cougar coupe.
Lincoln -- There was a day when Lincoln and Cadillac
battled for preeminence for sales leadership in the American
luxury car category. Lincoln long ago ceded the fight to
Cadillac, a GM division with new and exciting products.
Currently, Cadillac outsells Lincoln by more than 2 to 1 and
does battle with the likes of Lexus, BMW, and Mercedes. For
Lincoln, a new Town Car is needed plus a decision must be made
regarding just how much the division should rely on trucks and
SUVs to identify the brand. Currently, Lincoln line up includes
more truck models than cars. Reviving a historic model, such as
the Continental, could be a smart choice and putting some money
into the LS is another. Curiously, the make is changing the name
of its newest model, the Zephyr, to the MKZ after only one model
year.
Ford is floundering and it is particularly noticeable in two
divisions, Mercury and Lincoln. Its Mazda connection, which has
yielded several models including the Escape and Fusion, has been
a success. Tapping its Volvo association to help with larger
cars and with engineering would be wise and Ford should work
closer with its Jaguar division to produce additional vehicle
lines. The current LS, derived from the Jaguar "S Type" is an
example of an earlier collaboration that wasn't utilized to its
fullest extent.
All hope isn't lost for Ford, but the company's image has been
tarnished. The seed of greatness remains, but the company must
act quickly in order to regain consumer confidence and stop the
ever deepening erosion of its sales base to foreign makes.