EggYolkBill said:
Once again rpvitiello you have shown you have no understanding of the auto industry at all. Profits on low volume vehicles are not going to do ANYTHING for Ford right now. Selling them is the RIGHT thing to do. In retrospect I bet they wish they had never DUMPED the money into them to begin with. Their current strategy will allow them to BUILD better products with Lincoln and Ford brands without concern of overlap with other brands. Keeping Volvo also makes sense because they can now enhance Volvo and take to a higher level.
The US car companies TRIED to go after sheer volume to make money and it DOES NOT WORK. The volume game is failing because people are demanding higher end, and nicer cars in the US. I believe the last statistic I read was the average new car in the US now costs $35,000
BMW, Mercedies, and all those companies seam to have no problem making high end products that are designed to make a PROFIT, and not designed to simply be sold in volume.
I agree dumping billions into Jag and the other car companies with no clear direction was a BAD idea, but they already did it. They are giving these companies ALLOT of R&D that they are about to sell to a COMPETATOR for pennies on the dollar. Who ever buys jaguar for $2billion is getting about $10billion in R&D for free, and will turn around and sell those products at a lower price that ford did and undercut them with there own technology.
They needed to clearly define there products years ago, introduce new tech on the premium brands first (where high prices for new tech is a good thing) and then work on economics of scale on having the tech trickle down onto cheaper cars.
Ford also had NO marketing strategy to really unify the image of the company. GM did a much better job of having people see Pontiac, and Chevy etc as the same company. Ford is so disjointed people have no idea what brand is or is not ford.
Most of fords brands logos were ovals, just like the parent company. I would have started making ALL company badges on an oval and marketed all the brands as “the ford oval” trademark it so no matter WHAT particular brand you got, Volvo, land rover, jaguar, u knew they were the same family of vehicles.
I also would have combined dealers like they did Lincoln mercury, but unlike those that made the same basic car, and each brand was a trim level, make it so that the SUV’s were badged “land rover” and the premium Mercedes and BMW fighter cars were “jaguar.”
Lincoln and mercury are US only brands, and have no worldwide presence. The car market is going global, and almost ANY premium car is sold on a worldwide basis. GM, and Chrysler would LOVE to have unified brands worldwide. That is why Daewoo in the EU was renamed Chevy, that is why the now split Daimler/Chrysler tried to push Dodge, Chrysler, Jeep in the EU. Ford HAD those brands already, and they are basically giving away the jaguar, land rover, and Aston brands for a mere few billion. It will cost FAR FAR more than that to try and launch a revitalized Lincoln and Mercury in other car markets and if those brands are to survive they WILL have to go global. U can not compete with luxury cars sold on a global scale, with a car model that is sold in only one market and has less volume. You just don’t have enough R&D for profit.
Does not really matter though because it is FAR to late for that. Ford is getting desperate and is unloading HUGE investments for pennies on the dollar ( and lucky and smart businesses with the cash on hand are JUMPING at the opportunity)
Ford is going to be a shadow of its former self soon
Chrysler LLC will be liquidated and completely sold off (the name will live on though by a company that buys the brand names)
The only US company I have some faith in is GM if they can get the economics of scale from global products. Opel/Vanhalx/ Saturn one brand. Pontiac/ Holden one brand, Cadillac, Chevy, Buick, Hummer all global brand. They need the worldwide volume to get economics of scale.