Ford: Restoring Prestige and Honor
The Ford Motor Business, along with rival Common Motors, has been going through a time of severe testing due to concerns about product quality and relevancy, earnings, and long term viability. The net result is that Ford is organizing on closing several plants and will lay off as a lot of as 30,000 staff, a historic cutback that may possibly only be the tip of the iceberg. Is Ford finished or will the organization be able to regain strength and compete effectively in the years ahead?
Ford has undoubtedly taken its lumps and for excellent reason. Profits in the North American industry are nonexistent with losses in fact in the multibillion dollar range. Despite the red ink, all is not lost for the blue oval as the company remains extremely lucrative overseas. In addition, its 3 U.S. divisions have considerably to provide if some critical alterations are incorporated. Right here are my suggestions for adjust:
Ford -- The strongest division for the automaker is the 1 that bears its name. Fords strength is in its line of pick up trucks and SUVs. Select car models which includes the Mustang and Fusion are also strong sellers. Fords weakness can be located with its small vehicle line, the Concentrate, and with dated models such as the Crown Victoria. Greater for Ford to scrap their tiny auto lines altogether and import cars from Mexico or overseas. In addition, the company really should concentrate on overhauling the Crown Victoria and introducing an all new Ranger compact photographers model choose up truck. Lastly, Ford is finding out models photography of the minivan company 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 producing a profitable new minivan can be diverted to concentrate on shoring up other item lines.
Mercury -- Many have been predicting that Ford would scrap its Mercury division altogether. However, amongst the several management decisions announced lately indicate that Mercury will remain. Together with Lincoln, the two brands are weak and are in require of a lot help. Mercury cars for decades have been nothing at all much more than reworked Ford models consequently its brand identity has been diluted. It is time for Ford to aid Mercury come up with a clearer personality and a line of vehicles that are inspiring, not boring. A very good commence would be to develop a model photography car all Mercurys personal, 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 vehicle category. Lincoln extended ago ceded the fight to Cadillac, a GM division with new and exciting merchandise. At the moment, Cadillac outsells Lincoln by more than two to 1 and does battle with the likes of Lexus, BMW, and Mercedes. For Lincoln, a new Town Automobile is necessary plus a choice ought to be created concerning just how much the division should rely on trucks and SUVs to determine the brand. At present, Lincoln line up consists of more truck models than automobiles. Reviving a historic model, such as the Continental, could be a smart option and putting some cash into the LS is yet another. Curiously, the make is changing the name of its newest model, the Zephyr, to the MKZ soon after only a single model year.
Ford is floundering and it is particularly noticeable in two divisions, Mercury and Lincoln. Its Mazda connection, which has yielded many models including the Escape and Fusion, has been a achievement. Tapping its Volvo association to help with larger cars and with engineering would be wise and Ford should operate closer with its Jaguar division to generate further car lines. The present LS, derived from the Jaguar S Sort is an example of an earlier collaboration that wasnt utilized to its fullest extent.
All hope isnt lost for Ford, but the companys image has been tarnished. The seed of greatness remains, but the company need to act rapidly in order to regain consumer self-confidence and cease the ever deepening erosion of its sales base to foreign makes.
