Ford: We goofed on SUVs

[joe1280]

full article

Ford: Underestimated Shift From SUVs

TRAVERSE CITY, Mich. (AP) - Ford Motor Co. misjudged the speed at which consumers would shift from truck-based sport utility vehicles to cars and crossover vehicles and now is accelerating plans to deal with it, a top company official says.

In appearances Tuesday and Wednesday at the Center for Automotive Research Management Briefing Seminars in Traverse City, Mark Fields, Ford's president of the Americas, said the company will announce adjustments in its "Way Forward" restructuring plan by the end of September that include faster cost cuts and new products.

The company also is considering a $1 billion investment in manufacturing and research in its home state of Michigan, Fields said.

"We are rebuilding our business for the future with an emphasis on more new products faster -- and that includes more customer features and advanced technologies throughout our entire lineup," Fields said in a speech on Wednesday.

"Even as we reduce our overall capacity in line with demand and make the tough but necessary cutbacks throughout our business to secure our future, we are not retreating one bit from the necessary investments to bring out more products for our customers," he said.

Fields also announced that Ford is invigorating its product line with a limited-edition, souped-up Mustang designed with racing legend Carroll Shelby and a new flagship sedan for the Lincoln luxury brand.

But Ford's reaction to the rapid shift away from SUVs and trucks dominated Fields' Wednesday speech and a nearly two-hour interview Tuesday night with reporters.

He said the automotive market "seized up" last fall after Hurricane Katrina struck New Orleans and drove gas prices beyond $3 per gallon.

[Quickening]

DId they? Once they get the Edge and MkX out, a refreshed EScape and Mariner out..aren't they good to go? THey are in the pipeline and popping out very very soon.

[mgescuro]

Misjudged WHAT?

Ford had better CUV's on the market than GM did.
The problem with Ford's CUV's is not "misjudging the market" but putting out boring CUV's on the market. I spent 1 week in a Freestyle. And by the end of that 1 week, I had nothign but contempt for that car.

There's no excuse for the newer Explorer to lose the top position to the old Trailblazer... but it did.

Ford's products were no longer compelling to the market. THey had the same boring design for years and years and years. And their newer products were as equally boring as the ones they replaced.

[CRBoyd91]

Originally Posted by mgescuro

Misjudged WHAT?

Ford had better CUV's on the market than GM did.
The problem with Ford's CUV's is not "misjudging the market" but putting out boring CUV's on the market. I spent 1 week in a Freestyle. And by the end of that 1 week, I had nothign but contempt for that car.

There's no excuse for the newer Explorer to lose the top position to the old Trailblazer... but it did.

Ford's products were no longer compelling to the market. THey had the same boring design for years and years and years. And their newer products were as equally boring as the ones they replaced.

Well said.

[igor]

This is not as much about the Product as about profit ..

Ford has sizeable cash reserves, and sizeable revenue from BOF vehicles. IT counted on being able to simply float the bussiness untill Fall 2007 then cut costs.

The reason for floating the bussiness for 18 months was simple - Ford, like Gm will ask UAW to cancle any clause that prevents workers from being laid off, or fired. They will likelt pressure to cancel job banks etc. In short, if Ford managed ot float all thge extra capacity until the new contract, there was a good chance, they could save the buyout costs and simply lay off the workers they need to cut ... however, they needed steady truck sales to finance this wait.

The other problem for them is the relative draught in the pipeline for 2007 ad 2008 model year. They have a very good pipeline in place, but the really good stuff will not arrive before 2009 model year, and of course this will impact revenue. Ford was hoping that they will be able to survive it untill then, releasing the redeigns as planned, but really planing for really new models in the last years of the decade. Again, with the diminished revenues from trucks, they will have tougher times.

These are the 2 reasons they are officially talking about accelerated Way Forward - they will try to pull ahead some new products, liek the MKS and Fairlane, and will probably bite the bullet and buy out their workers. It is possible, they will also revise their plans for BOF SUV's and introduce even more parts sharing, uniting all of their BO models onto 3 platforms (Explorer, F150, SD) and making these platforms from united paerts bin, so a plant can switch between all the different models.

There is one more thing Ford learned - they NEED to change sheetmetal.. in Expedition, Explorer and Escape redesignes, the engineering is very, very different, but FOrd considerred sheetmetal changes low priority - and they got burned ... they hopefully will not repeat these mistakes.

Igor

[jbartley]

um, they didn't misjudge the speed of the shift from SUV's to CUV's, they just have made really boring and ugly SUV's

I thought this article was going to be about them apoligizing for the hideous navigator and expedition. Or the stupid Expedition L name....?

[asim]

Originally Posted by mgescuro

Misjudged WHAT?

Ford had better CUV's on the market than GM did.
The problem with Ford's CUV's is not "misjudging the market" but putting out boring CUV's on the market. I spent 1 week in a Freestyle. And by the end of that 1 week, I had nothign but contempt for that car.

There's no excuse for the newer Explorer to lose the top position to the old Trailblazer... but it did.

Ford's products were no longer compelling to the market. THey had the same boring design for years and years and years. And their newer products were as equally boring as the ones they replaced.

Yes, the Freestyle is a great crossover, and very well designed. The only thing is that it is boring, which hides all of its greatness. If I had to buy an CUV right now, the Freestyle would have a good look at it since I don't care much about exterior styling.

[mgescuro]

Originally Posted by asim

Yes, the Freestyle is a great crossover, and very well designed. The only thing is that it is boring, which hides all of its greatness. If I had to buy an CUV right now, the Freestyle would have a good look at it since I don't care much about exterior styling.

Well.. you'll see how much of a slug the Freestyle is when you drive it.
It's very disappointing.

Read my review on it.

[MrMax]

Originally Posted by mgescuro

Misjudged WHAT?

Ford had better CUV's on the market than GM did.
The problem with Ford's CUV's is not "misjudging the market" but putting out boring CUV's on the market. I spent 1 week in a Freestyle. And by the end of that 1 week, I had nothign but contempt for that car.

There's no excuse for the newer Explorer to lose the top position to the old Trailblazer... but it did.

Ford's products were no longer compelling to the market. THey had the same boring design for years and years and years. And their newer products were as equally boring as the ones they replaced.

lol, that sums it up. I mean... whats up with that "new" Explorer? Bad managment I tell ya.

[ScottS]

Great points by all. The Escape was well ahead of GM's offerings. The Escape Hybrid was first on the block for SUV's. The Freestyle was ahead of the curve, just behind on the powertrain. It's not bad looking and offers station wagon convenience without all the station wagon stigma. As noted, the Explorer was updated a lot underneath, but the lack of exterior updates doesn't convey that. I won't try and defend the full-sizers though.

[igor]

Originally Posted by MrMax

lol, that sums it up. I mean... whats up with that "new" Explorer? Bad managment I tell ya.

pretty much .. I said it several times - it is very unfortunate, that Ford decided to have a product rennessaince before they changed the management - they have mismanaged so many redesigns and hurt so many nameplate,s Fields will have hell of a time recovering some of the names.

Word on the street is that the Explorer name will be dropped after 2009. when Ford is ruching in a trully all new Midsize SUV (under pressudre from Fields) . . and losing that name is truly tragic

Igor

[Cassie]

Please bring back the Pinto Wagon with wood panels made of stickers - Love Cassie

[kenman923]

I think that the Ford Edge and Lincoln MKZ will fair very well, although I do like what GM is putting out. Now Ford needs to get hybrid power for their full size SUVs. Maybe even consider diesel.

[FStephenMasek]

Originally Posted by mgescuro

Well.. you'll see how much of a slug the Freestyle is when you drive it.
It's very disappointing.

Read my review on it.

Wait until early 2007 when the 2008 version with the revised styling, the new 265 HP / 250 Ft. Lbs. V6, and the new GM-Ford 6-speed automatic is out. Ford will then have a very impresive CUV lineup:

Escape / Mariner / Tribute
CX-7
Edge / MKX
Freestyle
CX-9

If they are smart enough to keep the Fairlane close to or better than the concept version, and get it out sooner, they will have a really excellent range of CUVs, although I do not know if any of them will be as large as the new Acadia and its Saturn and Buick sisters.

[Joevette]

Originally Posted by CRBoyd91

Well said.

my thoughts exactly