The power of the purse

[Biker16]

The power of the purse

The right handbag triggers the 'gotta-have' impulse, price be damned. Ford's design mission: Build that kind of magic into a global B-car.

 

Amy Wilson | Automotive News / April 30, 2007 - 1:00 am /

 

 

J Mays has been thinking a lot lately about women's purses.

 

Standing outside his favorite coffee shop in London, Ford Motor Co.'s design chief is explaining how fashion influences car design. He talks about the sacrifices that today's 20-something women make to buy stylish handbags.

 

"Although a handbag is an incredibly small thing, they are willing to shell out the bucks because it's part of the way they see that they can be stylish," Mays says.

 

Those 20-somethings who hone in on handbags are the same people buying B-cars, the small sub-Focus vehicles that will be the initial test of Ford's plan to develop global cars.

 

With a global B-car program, Ford hopes to save money by reducing product investment and exploiting economies of scale. The B-car program alone won't save Ford. But it will test CEO Alan Mulally's "One Ford" product plan, the centerpiece of his turnaround strategy.

 

Within five years, up to 70 percent of Ford's product lineup will be made up of global vehicles, Mulally says.

 

This year Mulally ordered that B-car engineering teams in Asia, North America and Europe be merged into one Europe-based team. That team will develop a single subcompact for the globe, with styling and tuning tweaks for various regions.

 

"Clearly, the companies that can leverage their global assets are going to best provide the customer with what they want," said Mulally in his Dearborn, Mich., office. "It's not a new thing, but it's a big deal for Ford. This is a new way of operating for Ford. This is now a mantra."

 

 

 

Martin Smith: "You wouldn't know that (a European Ford) is related to a Fusion. That's what Mulally is asking us to address."

No econoboxes

 

To succeed, Ford must inject the cars with enough design pizazz to avoid the generic "econobox" tag that often forces the Detroit 3 to sell small cars at a loss.

 

Which is why Mays, 52, has been thinking about handbags. It is a sunny spring day in Soho, just around the corner from the office where Mays oversees Ford design while staying attuned to European trends.

 

Mays won't allow visitors in the office. There are too many product sketches lying around, he says. So we're chatting outside of Flat White, which serves Australian-style coffee in this trendy neighborhood just north of Soho's notorious sex shops.

 

"A discerning customer will easily pay $1,000 for a handbag, sometimes more," Mays says. "Then they won't eat properly for a month just so they can have the stylish materials and stylish colors and all the accoutrements that go with that particular handbag."

 

Automotive trendsetters would be the BMW Mini, the Scion xB and perhaps the Smart ForTwo. Now Mays wants to bottle that magic.

 

"We see B-cars as the automotive equivalent of stylish handbags," he explains. "An older generation only saw B-cars as cheap and cheerful - 'I really had to stoop to buy this car because I couldn't afford anything else.' The new generation of discerning customers are looking for a B-car that can be stylish, aspirational and desirable."

 

As Ford develops its B-car, it is paying close attention to the design expectations of its target customer. The company has even created a hypothetical B-car buyer.

 

In Europe, her name is Antonella, and she's a 25- to 30-year-old woman living with her parents in Italy. In the United States, she's a 20- to 35-year-old woman named Kristin.

 

"Their values and attitudes are very much alike," says Ford's global product chief, Derrick Kuzak, 55. "One element is the increasing expectations of all customers of their vehicles. Econoboxes don't exist anymore in most markets - certainly not in mature markets."

 

And that's why Ford killed the original plans for the U.S. version of its B-car, which was to have debuted this year. Too generic, concluded Ford's top brass.

 

Kinetic design

 

To create a stylish B-car, Kuzak and Mays are counting on Martin Smith, 57, Ford of Europe's chief designer. Three years ago, Mays and Ford of Europe Chairman Lewis Booth lured Smith away from Opel.

 

At Ford of Europe, Smith has created a new look that he calls kinetic design. Vehicles with that look will use flowing lines to suggest a car in motion even when standing still.

 

At the 2005 Frankfurt auto show, Smith unveiled the Iosis, a coupelike four-seat sedan concept.

 

Now elements of Smith's kinetic design are turning up in production vehicles. The Mondeo sedan, which goes on sale this summer, is the first fully realized production example of kinetic design. The car got positive reviews when Ford first showed it last September at the Paris auto show.

 

The S-Max crossover wagon and the Transit commercial van - both predating Smith's kinetic vision - also have been well-received. The bottom line: Ford of Europe is making money again.

 

In 2006, Ford of Europe posted a pretax profit of $455 million. Ford sold 1.85 million vehicles in Europe last year, up 20 percent from 2002. Mulally considers Europe's turnaround as inspiration for a North American revival.

 

"They're winners," he said. "They were in trouble a few years ago, and they're on a really positive, profitable growth plan now. … It is a shining example of a well-run business."

 

In January, Mulally visited Ford of Europe's operation in Cologne, Germany, where he reviewed the product lineup, walked the assembly line, met top executives and gave a pep talk to 100 key employees.

 

After giving one admirer the Ford Blue Oval pin off his own lapel,

 

Mulally requested that pins be ordered for all 65,000 employees at Ford of Europe.

 

Mulally said Ford of Europe got its mojo back by staying focused on the customer. By moving more heavily into diesel engines and producing more variants of Ford's stylish small cars, the Cologne crew put its product lineup back into contention.

 

Ford's turnaround plan for North America shares similar elements: Shut down plants, slash the work force, trim raw material costs. But the key will be to put design back onto center stage.

 

Try, try again

 

All of this sounds good in theory. But Ford veterans know the company has previously tried - and failed - to create global cars.

 

In the 1990s, two Mondeo variants dubbed the Ford Contour and Mercury Mystique debuted in the United States. They bombed.

 

The Focus was supposed to be a world car, too. But after the first generation, the U.S. and European markets ended up with different versions because U.S. product planners didn't want to invest in the same upgrades that European planners used.

 

The Ford 2000 restructuring of former CEO Alex Trotman was supposed to generate a portfolio of global vehicles, but that plan also failed (see story, Page 30).

 

It's Kuzak's job to make it work this time. Mulally, who calls Kuzak "our hero," picked him last December to be global product chief. Currently, Kuzak is trying to weave together the company's product plan. He says he will establish more global vehicle teams like the one set up for the B-car.

 

Once Kuzak figures out how to harmonize Ford's product plans, it will be up to two Brits - Smith and U.S. design chief Peter Horbury - to create a global look for the Ford brand. It could take as long as seven years.

 

"At the moment, you wouldn't know that the S-Max is related to the Ford F-150 truck," Smith says. "You wouldn't know that (a European Ford) is related to a Fusion. That's what Mulally is asking us to address."

 

For the moment, Horbury is sticking with "Red, White and Bold," a look that features the familiar chrome three-bar grille on the Fusion and Edge. Horbury has earned good reviews for the clean lines of the Edge crossover and the Flex not-really-a-minivan, which goes on sale in 2008.

 

But Horbury's Red, White and Bold has little in common with Smith's kinetic design. Smith says it's still early; they'll work it out. It's too early to say how kinetic design will influence the next generation of vehicles, he admits: "We don't exactly know how to do it yet."

 

European styling

 

Smith says the "overriding influence" on Ford's global vehicle programs will come from "the markets where that look is having a huge success." Ford's next generation of vehicles will be designed where they are engineered, he says. For small and mid-sized cars such as the Focus and Fusion, European designers likely will have a big say.

 

But different regions won't get identical cars. With the coming B-car, for example, Europe will get a hatchback while the United States and China get sedans. Like handbag designers, Ford will customize colors, materials and finishes to fit local tastes.

 

When the B-car debuts, it will provide important clues to Ford's worldwide design direction. Until then, Ford watchers will have to ponder a woman's handbag as if it were some sort of Zen aphorism.

 

You may e-mail Amy Wilson at awilson@crain.com

[Blueblood]

"But different regions won't get identical cars. With the coming B-car, for example, Europe will get a hatchback while the United States and China get sedans."

 

God that better be wrong, might as well not even bring a hideous B-sedan over here, already doomed to failure..

 

 

Bring us the fucking hatch!!!!!!!!!

[jpd80]

Mulally said Ford of Europe got its mojo back by staying focused on the customer. By moving more heavily into diesel engines and producing more variants of Ford's stylish small cars, the Cologne crew put its product lineup back into contention.

 

Yeah Baby, Yeah!

[old_fairmont_wagon]

No hatch for the US b-car? What, they don't sell? I mean, really, for the B-car models that are offered as both hatches and sedans in the US, I see far more of the hatches than the sedans on the road. I believe that someone shopping in the B-car segment is thinking of utility for the buck as well as style, price and economy. A hatch is far more useful than a sedan IMHO.

[swenson88]

No hatch for the US b-car? What, they don't sell? I mean, really, for the B-car models that are offered as both hatches and sedans in the US, I see far more of the hatches than the sedans on the road. I believe that someone shopping in the B-car segment is thinking of utility for the buck as well as style, price and economy. A hatch is far more useful than a sedan IMHO.

 

I don't think that's true at all. In cars that offered hatches and sedans from the get-go almost every one sells more sedans than hatches - Focus, Yaris, Accent, Mazda3. The most recent example I feel is the Yaris, I think over the past year I've seen one Yaris hatch and more like a hundred sedans. The Fit is hatch-only and the Versa was for awhile, but now that there's a Versa sedan I wouldn't be surprised if the sedan starts selling more. Look at the Matrix vs the Corolla, although technically two different cars they're in the same size and price bracket and the sedan far outsells the hatch. America just hasn't warmed up to hatches like the rest of the world. Maybe they will at some point, but if they're set on only bringing one version it should definitely be the sedan.

[MKII]

Quote "Once Kuzak figures out how to harmonize Ford's product plans, it will be up to two Brits - Smith and U.S. design chief Peter Horbury - to create a global look for the Ford brand. It could take as long as seven years."

 

The question is "which designer (Smith or Horbury) will still work for Ford" in seven years.

Edited April 30, 2007 by MKII

[joihan777]

I don't think that's true at all. In cars that offered hatches and sedans from the get-go almost every one sells more sedans than hatches - Focus, Yaris, Accent, Mazda3. The most recent example I feel is the Yaris, I think over the past year I've seen one Yaris hatch and more like a hundred sedans. The Fit is hatch-only and the Versa was for awhile, but now that there's a Versa sedan I wouldn't be surprised if the sedan starts selling more. Look at the Matrix vs the Corolla, although technically two different cars they're in the same size and price bracket and the sedan far outsells the hatch. America just hasn't warmed up to hatches like the rest of the world. Maybe they will at some point, but if they're set on only bringing one version it should definitely be the sedan.

IF Ford ONLY brings one B-Car to America, it would be a sedan. But this would be the beancounters ruling the roost. It would be far better to streamline inventory in order to bring in sedans and hatches. Some of us DONT WANT SEDANS! A Mustang is as close to a sedan as I'll ever get, at least for the next several years. My latest car is a VW Rabbit (wife's). Part of the reason we chose this hatch is because of the space efficiency. We have one of those newly built houses that are part of the new-housing boom. The garages in MOST of these newly constructed homes are tiny. We needed something small. Even the Corolla was a big car for us. And with modern parking spots increasingly shrinking, space efficient hatches make more sense. and FWIW, a lot of Focus that look like sedans are actually hatchbacks. Hatchbacks are also much easier to park. You all know some folks have a tough time parking! I think the image of hatchbacks is malleable, something for the marketing department to start hammering away at as soon as the B-car arrives. So it would be seen as a cute purse... err you know what I mean.

 

BTW, out here in NorCal, I have yet to see a Yaris sedan. They are either hideously invisible or nobody wants them. Lotta hatches however.

Edited April 30, 2007 by joihan777

[silvrsvt]

For all of you that are bitching about the lack of a hatchback...get over yourselves...the vast majority of the car buying public in the States prefers a sedan over a hatchback. I'd rather have Ford sell the Sedan and make a good splash with it then worry about a hatchback coming over.

 

I'm amazed at how fringe groups attack anything Ford does, when Ford is just listening to the market...and not a handful of people who think that when Ford does anything opposite of their wishes they suck or whatever....

[pcsario]

This explains a lot. So there's Fiesta SEDAN coming, possibly the car being previewed this January.

 

Could be the car shown in the SOTF thing.

 

European styling

 

Smith says the "overriding influence" on Ford's global vehicle programs will come from "the markets where that look is having a huge success." Ford's next generation of vehicles will be designed where they are engineered, he says. For small and mid-sized cars such as the Focus and Fusion, European designers likely will have a big say.

:banana piano:

Horbury becomes Martin "THE EURO PIMP" Smith's bitch, plus Mays puppet and a grille swapper.

 

Only Mustang, Lincoln and trucks to remain mostly american.

 

Mulally vindicates the grouches once again.

 

"DESIGN IT HERE, SELL IT HERE" :rip:

Edited April 30, 2007 by pcsario

[igor]

I just realized what the article is saying ..

 

from previous accounts we have heard that Ford IS planning (again) to introduce the NEXT EcoSport / EU Fusion / B-Max in the US under the "Crossover" moniker.. so they will bring over the Fiesta sedan and a taller (more practical) AWD optional "crossover"

 

I might br wrong on this because it is a conjuncture from previous intormation, but it would make perfect sense in line with so many other Ford vehicles:

 

Fiesta sedan - EcoSport

Focus sedan/coupe - Escape (whatever they will call the Iosis-X production)

Fusion sedan - Edge

Taurus Sedan - Taurus X / Flex

 

See?

 

I am not TOO thrilled about it .. I would love a low to the ground hatch, but it seems to be working in the case of Fusion and Edge ..

 

Igor

Edited April 30, 2007 by igor

[RichardJensen]

Horbury becomes Martin "THE EURO PIMP" Smith's bitch, plus Mays puppet and a grille swapper.

Yeah. Because you're such a HUGE fan of what Ford does with Mercury, right?

 

The hypocrisy of this attitude is so thick you can cut it with a knife.

 

You want Ford to relegate itself to VW status here, selling to all intents and purposes, Euro-spec cars.

 

Stop me if I've misstated your position.....

 

Further, you think that JUST swapping out a grille is FINE, as long as it's the grille of the MONDEO that's being swapped out, right? Stop me if I've misstated your position.......

 

Then there's Mark Fields, the open proponent of Red White and Bold

 

http://media.ford.com/article_display.cfm?article_id=22345

http://money.cnn.com/2006/01/20/news/compa...rtune/index.htm

http://www.autoblog.com/2005/12/17/fords-2...white-amp-bold/

http://www.autoweek.com/apps/pbcs.dll/arti...1024/LATESTNEWS

http://www.cars.com/go/features/autoshows/...verage_01_10_02

 

It's not just Horbury that's pushing for 'Red White and Bold' styling. Or am I misstating your allegation up there?

 

No less an individual than Senior VP and CEO of the Americas Mark Fields, who reports directly to Alan Mulally, is in favor of the 'Red White and Bold' design language (viz: Edge, Flex, Mustang, SD, etc.)

 

Furthermore, did you not READ the other article, the one on Ford 2000? Did you not read the part of the article where Mulally pointed out that a fatal flaw with Ford 2000 was its removal of decision making from geographic P&Ls?

 

Future Fords will be engineered in one location, but if you think that the design for Ford NA is going to be fobbed off on Cologne, with NA's design team relegated to 'grille swapping', you couldn't be more wrong. Fields would no more sign onto that than Mays, Kuzak, or even Martin Smith.

[pcsario]

Mulally pointed out that a fatal flaw with Ford 2000 was its removal of decision making from geographic P&Ls

That failed because it was a "done by comitee" approach from the start more than anything else. What Ford is doing now is simply taking the Mazda approach.

 

Mark Fields has been at Mazda and FOE before he was at FNA, he is FOR one car sold in different markets with minimal adjustments, not against, and judging by his work on Mazda, his tastes are far more in line with what FOE does than the rubish coming out of FNA (Fuck Us, Edge/Fusion interiors, etc). so no, he won't be siding with the old guard just so the old "pride and purity" mantra can continue. Latest example? He ditched FNA's stereo to go with a global approach with Sony.

 

Paraphrasing something you said before: "What is said in public and what's happening behind the scenes are two different things". Key example: His hypocritical public love for the Fuck Us and his true opinion of it. So your links mean crap, they are simply PR statements. He will want the best product he can get, which means saving as much as possible in the development process to afford it. Changing the sheetmetal = $$$, which would equal less cash for other things. So in terms of significant changes, he couldn't care less about preserving heritage or asking for sheetmetal changes to give FNA products a more "classic" look Vs. Smith's aggresive and sporty designs. And since this is all about design...

 

 

J Mays

 

That one isn't even up for debate. Ford's design supremo adores Europe. When it's not a heritage car, he'll favor euro styling solutions (see Fusion and Edge, nothing american about them other than "Dave", which was --surprise-- a front end job/change.) Along with Freeman Thomas, Martin Smith is one of J's closest friends. Mays is a perfectionist, a coordinator who cares about proportions and making the car look good from any angle (Witness the massive difference between the balance found in the Mondeo Vs. the MKS). He ADMIRES Smith's work, loves FOE work even more, and will always side with whatever styling direction Smith favors. From a 50/50 start point, whatever Ford's design language ends up being, won't be sided in Horbury's favor. The next Mondeo will be the next Fusion and will be styled in Europe with SOME suggestions from NA, not this dual-continents-giving-it-a-try teamwork pipedream you have. In terms of design, anyone expecting something more drastic than a different front end from the one for Europe is in for a rude awakening. I'm willing to bet $5 on this. If they end up having different side sheetmetal from the a-pillar back (your case), then I'll gladly paypal them to you. I seriously doubt it.

 

I don't like rebadges in the way of having clones sold in the SAME country. This isn't the 90's and this isn't GM. The Milan and Montego are insulting, especially since their Ford counterparts were artificially downgraded to justify the Mercury rebadges.

Edited April 30, 2007 by pcsario

[igor]

from an inside source

 

the US B-car WILL HAVE A HATCH as an optional BODYSTYLE

 

Igor

[LincolnFan]

price be damned.

 

Right on, but you all shouldn't go jacking up the price that high...

[LSFan00]

It's almost as if Richard doesn't like being informed that Ford isn't going to keep doing things the way they have been doing them in NA.

 

Spin it how you want RJ, but (a) NA-designed, and (B) bean-counter-marginalized products are dying side-by-side. It's not product research, or the '86 Taurus, or the F250, or the protracted inattention to the T-bird/Ranger/CV/Escort/Taurus/Bronco/Tbird III/LS/MarkVIII/Contour that killed them, it's mid-management quarterly-goal-focused good-enough-for-this-sales-target ridiculousness. Fusion has a great conquest rate; yippee, that's because it doesn't have repeat-Ford buyers because premium AND cheapo buyers already went elsewhere.

 

WINNING means being best-in-class. Everywhere.

[MKII]

It's almost as if Richard doesn't like being informed that Ford isn't going to keep doing things the way they have been doing them in NA.

 

Spin it how you want RJ, but (a) NA-designed, and (B) bean-counter-marginalized products are dying side-by-side. It's not product research, or the '86 Taurus, or the F250, or the protracted inattention to the T-bird/Ranger/CV/Escort/Taurus/Bronco/Tbird III/LS/MarkVIII/Contour that killed them, it's mid-management quarterly-goal-focused good-enough-for-this-sales-target ridiculousness. Fusion has a great conquest rate; yippee, that's because it doesn't have repeat-Ford buyers because premium AND cheapo buyers already went elsewhere.

 

WINNING means being best-in-class. Everywhere.

 

 

Isn't RJ a banker, accountant or bean-counter of some sort?

[NickF1011]

from an inside source

 

the US B-car WILL HAVE A HATCH as an optional BODYSTYLE

 

Igor

 

GOOD. And I don't really care that I'd have no interest in buying either one, but it can't cost that much to throw a hatchback into the product mix. I mean really, what's so different about a hatch over a sedan? A few pieces of glass and some pieces of metal above the beltline. While sedans ARE more popular than hatches, why just IGNORE those buyers? Coupes are more popular than convertibles -- should Ford discontinue the Mustang drop-top? Wait a second...the sedan is more popular than the coupe too -- should Ford discontinue the Mustang altogether? Ford will never regain any market share until it starts playing in smaller segments where there isn't as much competition -- like hatchbacks.

[bolita]

I just realized what the article is saying ..

 

from previous accounts we have heard that Ford IS planning (again) to introduce the NEXT EcoSport / EU Fusion / B-Max in the US under the "Crossover" moniker.. so they will bring over the Fiesta sedan and a taller (more practical) AWD optional "crossover"

 

I might br wrong on this because it is a conjuncture from previous intormation, but it would make perfect sense in line with so many other Ford vehicles:

 

Fiesta sedan - EcoSport

Focus sedan/coupe - Escape (whatever they will call the Iosis-X production)

Fusion sedan - Edge

Taurus Sedan - Taurus X / Flex

 

See?

 

I am not TOO thrilled about it .. I would love a low to the ground hatch, but it seems to be working in the case of Fusion and Edge ..

 

Igor

 

I completely agree with your line-up, but I would like to see this line up in the global sense as supposedly by 2010/2011 over 70% of Ford's line up will be global..

[RichardJensen]

he is FOR one car sold in different markets with minimal adjustments, not against

 

Ford's design supremo adores Europe.

Why don't you FURNISH LINKS that PROVE what you've said? Especially, I'd like you to PROVE that the Edge grille was a design change, and that the Flex is a design INSPIRED by Europe.

 

There's no amount of SOURCES that acknowledge the design changes on the Fusion.

 

For the rest of it, you don't have a leg to stand on.

[igor]

I completely agree with your line-up, but I would like to see this line up in the global sense as supposedly by 2010/2011 over 70% of Ford's line up will be global..

well count one thing in .. the next gen Edge will be designed with EU in mind .. the current one was denied at the last moment, but the next one is being conceived with the EU market in mind. so there you have a piece of that 70% ...

 

Fusion, Focus, Escape(IosisX), Fiesta, B-Max, Edge - all global. Also keep in mind that "global" does not necessarily mean "present on all markets" it simply means " no orphaned unique models - this type of vehicle is either absent on the market, or it is part of a global model".

 

Igor

[RichardJensen]

It's almost as if Richard doesn't like being informed that Ford isn't going to keep doing things the way they have been doing them in NA.

Ultimately, by opposing what I've posted here, you stand in favor of Ford doing NOTHING to distinguish its NA products from its EU products, except the universally despised practice of swapping out grilles.

[RichardJensen]

Isn't RJ a banker, accountant or bean-counter of some sort?

Why? Because I don't agree with you?

 

 

 

 

 

 

 

I have half an inclination to say that I AM an accountant just to stoke the prejudices of people that use that career as an insult.

[LSFan00]

Ultimately, by opposing what I've posted here, you stand in favor of Ford doing NOTHING to distinguish its NA products from its EU products, except the universally despised practice of swapping out grilles.

 

Penultimately, no, I don't have to choose between this dichotomy.

[RichardJensen]

Penultimately, no, I don't have to choose between this dichotomy.

1) "Post-Ultimately" would be more appropriate, and

 

2) Yes, you do. If you would actually bother to read my posts instead of skimming them and assuming I'm full of it, you would understand that I see no benefit from either the extreme of isolated platforms component systems and so forth (such as CD3 and EUCD), and that I see no benefit from sharing every piece of sheetmetal between products built for sale in profoundly different markets where the Ford name draws profoundly different customers.

 

Having thus staked out a position squarely against EITHER extreme, you either agree with me that the extremes are not sound, or you believe that they are.

[LSFan00]

1. For matters of this world, I don't have to choose. Post-ultimately, your characterization of my options don't matter.

2. I have not staked out an extreme; you ultimately have. I don't advocate designing full-size pickups for this market, in Europe, as you have insinuated. But Ford NA-designed products for mid-size to small vehicles have had atrocious shortcuts for 30 years plus, mainly on the inside. Thus, I don't have to choose between supporting your purportedly nuanced views of customized/tailored/bold sheet metal for the NA consumer (and invariably higher HP/no diesel options), and my (also purported) view that we just should outsource wholesale platform/sheetmetal design to Europe.

 

Conclusion: I am not on an extreme, but since F-NA is stuck on bean-counter stupidity then bring on some global platforms wholly engineered elsewhere. Change is coming, at a high price, to Ford NA. I don't know why you fear it so much, or why my opinion is less than worthy/I am not a customer somehow, but it is coming quickly.

 

PS: E-series is doomed.