Ford's product predicament

[Biker16]

Ford's product predicament

3 fuel-sipping small cars in development are still years away

 

Rick Kranz | Amy Wilson | Automotive News / July 24, 2006 - 6:00 am

 

 

Ford Motor Co.'s slumping sales and growing red ink are forcing company leaders to rethink the cadence of its North American product plan. At a time when its traditional cash cows -- V-8-powered trucks -- are sinking fast, Ford needs revenue.

 

But Ford's product plan leaves little leeway to bring forward fuel-efficient vehicles in the next couple of years.

 

Last week, CEO Bill Ford said Ford's Americas president, Mark Fields, and his team "have intensified their efforts, with an emphasis on reducing costs and accelerating product development." Ford did not provide specifics in his conference call with analysts and journalists after the company's disappointing second-quarter financial report.

 

As gasoline tops $3 per gallon across much of the country, a quick review of Ford's imminent products in North America shows a continued reliance on mid-sized and larger cars and trucks. Many vehicles planned for the 2007 to 2010 model years are aimed at sinking segments, such as SUVs and pickups.

 

Far off on the horizon are three B-segment vehicles that will likely get 40 miles or better per gallon. Two of them are penciled in for the 2009 calendar year. Ford executives are also discussing a small minivan for the 2010 calendar year. All three models are expected to be assembled in North America on a front-drive Mazda vehicle platform. These B-segment vehicles would be smaller than a Ford Focus.

 

But sources say Ford's board has not approved the program.

 

 

North American design chief Peter Horbury recently left the door open to borrowing a B-segment car from another part of the world.

 

In an interview last week, Ford CFO Don Leclair acknowledged the limits on Ford's ability to pull forward product programs in the next 18 months.

 

Debuting in the next month or so are such critical vehicles as the 2007 Ford Edge and Lincoln MKX crossovers, as well as the restyled and re-engineered 2007 Ford Expedition and Lincoln Navigator. Debuting early next year are the redesigned 2008 Ford Super Duty pickup and the re-engineered and reskinned 2008 Ford Escape and Mercury Mariner SUVs.

 

Beyond that 18-month period, industry sources say, significant vehicle programs that could be pulled forward are the MKS, a new front-wheel-drive sedan for Lincoln; Ford's minivan alternative based on the Fairlane concept car; and the re-engineered, restyled F-150 pickup. All are planned for the 2009 model year.

 

Fields said Ford would not rule out importing products. But he said the focus of efforts with other regions is on sharing systems and components, not products.

 

You may e-mail Rick Kranz at rkranz@crain.com

[RichardJensen]

"Far off on the horizon are three B-segment vehicles that will likely get 40 miles or better per gallon. Two of them are penciled in for the 2009 calendar year. Ford executives are also discussing a small minivan for the 2010 calendar year. All three models are expected to be assembled in North America on a front-drive Mazda vehicle platform. These B-segment vehicles would be smaller than a Ford Focus.

 

But sources say Ford's board has not approved the program."

 

Zuh? The board approves a new plant, but not a product to build in it? Where is this guy getting his info?

[igor]

"Far off on the horizon are three B-segment vehicles that will likely get 40 miles or better per gallon. Two of them are penciled in for the 2009 calendar year. Ford executives are also discussing a small minivan for the 2010 calendar year. All three models are expected to be assembled in North America on a front-drive Mazda vehicle platform. These B-segment vehicles would be smaller than a Ford Focus.

 

But sources say Ford's board has not approved the program."

 

Zuh? The board approves a new plant, but not a product to build in it? Where is this guy getting his info?

 

that would be confusing, but I believe the Focus is staying at Wayne and the B's go to the Mexican F-series plant ..

 

Igor

[RichardJensen]

that would be confusing, but I believe the Focus is staying at Wayne and the B's go to the Mexican F-series plant ..

 

Igor

Way I understand it, even per Fields' most recent comments (deflecting the $9B in Mexico story), the siting of the low-cost plant is not publicly final, and may--in fact--be in the U.S. The Mexican F-Series plant, I believe, produces mostly for consumption outside the U.S. I think I've seen "3" code SuperDuties before, but not many if I have.

 

I would expect to see Ford accelerate the closing of Norfolk, and may pull ahead the next Ranger.

[silvrsvt]

Well Ford better do something about its C car segment...either totally retool Wayne for the C2 and redo the agreement with the UAW so it becomes more cost efficient or build the new plant to replace Wayne.

 

I think Ford would make $$$ doing this then building another Mexican plant on a lower or zero profit B cars, unless they can find some way to make the Bronco off road capable and sell in the high teens/low twenties without incentives.

[wescoent]

Well Ford better do something about its C car segment...either totally retool Wayne for the C2 and redo the agreement with the UAW so it becomes more cost efficient or build the new plant to replace Wayne.

 

I think Ford would make $$$ doing this then building another Mexican plant on a lower or zero profit B cars, unless they can find some way to make the Bronco off road capable and sell in the high teens/low twenties without incentives.

 

I can't imagine it would be all that challenging to make an off-road competant Bronco off the B1 platform. Its smaller size and inevitably better packaging than the Wrangler will make it more nimble offroad. Assuming it's engineered to have a 4WD option, all it would need for a FX4 package would be beefier tires, taller ride, off-road shocks, and plenty of skidplates underneath, all of which are bolt-on plug-in parts. I doubt the hardcore offroaders who want to climb vertical cliffs would give up their Wranglers anyway, but for kids who are looking to go camping or take their trucks down dirt woods trails, an FX4 package like that would easily fulfill what they're looking for. With a base model starting under $13,000, topped off with a full-tilt FX4 model at $22,000, sandwiching a bread and butter popularly equipped FX4 Appearance Package (with beefier tires and such), Ford could have the next Mini Cooper on their hands. 35-40 mpg for a truck-looking thing ain't gonna hurt.

 

An attractive, 2+2 Reflex coupe would also be a hot seller these days to give Ford a sports car option underneath the Mustang.

 

Simply borrowing the next-gen Fiesta, and building it in a low cost North American factory would round out the lineup very nicely, giving Ford something to compete directly with the Aveo, Yaris, and Fit, while the other two take on Scion head to head.