Tuesday, July 22, 2008

Ford to Make Broader Bet on Small Cars - NYTimes.com

I know it's hard to make changes when steering these gigantic companies, but shouldn't they have done a "me too" statement when Toyota, Honda, and Nissan all said they were going smaller and hybrid? It's several months later. If Bill Ford had been able to get his way, the environmental stuff would have put Ford in position to be a leader instead of a laggard. The hybrid Escape is probably the best selling US hybrid right now.

The big thing is that Ford or GM needs to come up with a class leader. Have as a goal, the most fuel efficient car in North America. At least the most fuel efficient SUV (all-classes) and Minivan. Then move down the chain. By then, oil prices will probably be under control, but they need to establish some goals.

The other problem is trying to get rid of brands. It seems that they are doing everything to shrink their dealer base, but it seems too little too late. The contracts and laws are not very favorable to GM or Ford, but they need to get the full court press and start with a state by state strategy and get those state laws changed. It's been almost a decade since they knew that they had too many dealers. Getting rid of a brand is fine, but very expensive. However the way things are going now, they are going to be bankrupt before they have another chance.

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