Tuesday, April 13, 2010

Kudos To Ford


In the dark days of the American automobile one has to sift through the reports of government bailouts, long loved brands meeting their demise, and sales figures that would make a grown man weep, (I think I can name a few CEO's that already do that) to find good news within the industry. One American brand that may not require as much searching is that of Ford Motor Company.

Ford's U.S. sales were up 43% for March compared to that of last year. Included in this total is Ford's corporate cousin, Mercury, and luxury minded Lincoln brands. This is a great news for Ford as it follows they're general profit of 2009 and month to month thus far. I have to hand it to Ford, they've been one of the smartest American auto manufactures throughout this recession, if by blind luck, or folks in the boardroom are finally speaking the same language.

Ford's profits could easily be pointed to the smarter designs and diverse models they're offering to consumers. It seems Ford focused this past year on their sedans and econo-friendly models, while finally throwing some real life back into Lincoln. This was a smart move in my opinion. By making a good thing even better, the 2010 Ford Fusion keeps the growing in popularity sedan relevant, while managing to squeeze out a Fusion Hybrid, for the green folks. Throwing some engineering time and money behind the 2010 Ford Taurus, it once again gives the Taurus name weight in the competitive family sedan market. Time will tell how well this new Taurus will resonate with customers. With a loftier price tag than perhaps some would come to expect of a Ford product, it may put some buyers off, but at least it doesn't cause any to scan past it compared to the sleepy design of it's identity crisis predecessor, the 2004-09 Five-Hundred/Taurus. And Ford didn't forget to market to the equally competitive, youth oriented market, with a freshened Focus and the 2011 Ford Fiesta. The Fiesta screams Ford of Europe and I think that's a good thing. In fact I suspect Ford has included Ford of Europe's engineering and design team on a sleuth of their latest models which all I can say is "About time!"

Ford also may be leading the American brand edge with the consumer, not only with eye pleasing designs and reliable products, but also in consumer confidence. While GM and Chrylser hung their heads in shame last year, taking government funds to keep their companies afloat, Ford held it's head high, if anxiously, looking towards the future of the economy. Careful planning ahead, before banks started closing their doors for credit, or perhaps just the right decisions were made at the right time, has helped keep Ford "liquid" through this time, and that may be at the top of potential buyers minds. Will my brand be here tomorrow? What will this do for my vehicle's resale value?

Smart, if tough decisions, like selling Land Rover and Jaguar to Tata Motors Ltd. helped cut the fat from Ford's back and perhaps gave it the means to throw money into their domestic products. Or perhaps just made sure they paid their loans on time. Either way a good move by Ford in my opinion. Tata as of late has made news with it's own debts, but we'll save that for another time.

Ford still has great strides to go. They are still nowhere near sit-back-and-relax sales figures, but keeping them on their toes may be just what the doctor ordered. I imagine Ford will next need to focus on some of it's 4x4 products if it hopes someday to relive the golden age of the Ford Explorer and the surging small SUV/Crossover market.


The Guy Who Knows Cars

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