Friday, June 12, 2009

Hard to believe

Someone asked me how Ford as come through the collapse of the US auto industry relatively unscathed, at least so far. Let's see how about this....

  • Brand consistency - Ford hasn't launched a a new "brand" since 1985's Merkur disaster. They were wise enough to kill that abortion in just four short years. New brands do nothing but increase production complexity, marketing cost and dillute your other brands.
  • Global Operations - Ford has sold all around the world and always under the Ford name plate (hear that GM/Vauxhall/Opel or whoever you are this week). They also designed and built cars specifically for those markets instead of trying to repackage the same shit.
  • Innovate through acquisition - Ford started the boutique brand wars in 1989 when it snapped up famed English sports car maker Aston Martin. Twenty years later Ford has divested nearly all (Volvo still remains but is for sale) of those boutique brands BUT they gained years of invaluable technical, engineering, safety and performance experience by owning those companies. Ford would "enhance" these companies but would not dillute their product, leaving most of the character of those cars as they should be. Take Saab as an example of what GM did...it's just a Subaru/Saturn/Vauxhall with a fancy interior. All of the Saab character was beat out of the car by GM's obsession with shared platforms and "badge engineering".
  • Good timing - Ford may have lost money selling Jag and Land Rover but if they hadn't sold them when they did they would have been stuck with them like anchors (like GM is with Saab).
So the result is that Ford can bring out new products when most of its rivals are struggling to survive. Look at the new Taurus SHO, I know what you're thinking but just keep an open mind. This thing looks great has an awesome engine and is set to include features like heated/cooled/massaging seats....just like the German sedans that cost $10K-$20K more.

Only problem is that you have to tell people you drive a Taurus....may be worth it.

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