My partner Amanda and I are part of Medinge’s presence at Dutch Design Week this year.
Since Medinge couldn’t celebrate our 20th anniversary due to COVID-19, some of our Dutch members, helped by many others, took the opportunity to get us into the event, which is virtual this year.
We had done a lot of work on Generation Co earlier in 2020, thanks to a load of Zoom meetings and emails. This takes things even further, but builds on it. The programme can be found here, and is titled ‘Putting the Planet First: a New Orientation’.
The description: ‘Instead of thinking about the 3Ps—your challenge is to adopt a new perspective. Always put Planet first. Then people. Then profit.’
After signing up for free, you can head into our virtual rooms.
From the page: ‘Only 21/10/2020, 10:00–13:00 lectures and livestreams from members of the Medinge Think Tank: a group of brand experts and visionaries from around the world whose purpose is to influence business to become more humane and conscious in order to help humanity progress and prosper. With international speakers who have worked on these rights and bring in the perspective from indigenous people who co-exist with the rivers.’
On Tuesday the 21st at 10 a.m. CET is Amanda’s presentation on the Whanganui River, which was given the rights of a legal person in legislation enacted in March 2017.
Amanda worked at the Office of Treaty Settlements at the time, so this is really her talk. I just set the laptop on the table, with a microphone generously lent to me by my friend Brenda Wallace. Then I edited it in video-editing software with all the skill of an amateur.
But that’s the year of COVID-19 for you.
The way the talk came about was in discussion in 2019 with my colleagues at Medinge Group. The concept of legal rights on natural resources and indigenous rights came up, as did the case of the Whanganui River, which is known beyond our shores.
They had no idea Amanda worked on it, and proudly I mentioned her role.
From then on she was part of the programme, and it all came together last Friday.
In the talk, you’ll see me on a much lower chair than her, propped up by a bag of rice that slowly sags as the recording wears on.
There’s only so much furniture at her Dad’s studio but it was the most comfortable place we could think of for the filming.
More important are the contents of her talk, which I thoroughly recommend. She worked really hard on the responses over a few weeks to make sure it was thoroughly rigorous.
It’s followed by a talk from my good friend and colleague Sudhir John Horo. Pop over, it’s going to be a really eventful day in virtual Eindhoven.
Here’s a cautionary tale found by Lucire travel editor Stanley Moss. His words: ‘Photographer Dmitry Kostyukov recently experienced a rich dialogue with an algorithm belonging to a Scandinavian swimwear company. He’d been auto-mistaken for a Y chromosome, and digitally invited to become a brand ambassador. Dmitry accepted, and received the sample suit of his choice, an influencer name and instructions on how to photograph himself wearing the product. This exposes one facet of what advertising has become, commodified advocacy. Following is the text of his statement about the project, filled with reminders of what today constitutes the new paradigm of product promotion. Caveat emptor.’
In other words, don’t leave your marketing in the hands of a program. I haven’t followed up with Bright Swimwear, but I hope they’ll run with it, not just to show that they are ‘progressive’, but to admit that there are limits to how algorithms can handle your brand. (They haven’t yet.)
If the world desires more humanistic branding, and people don’t want to feel like just a number, then brands should be more personal. Automation is all right when you need to reach a mass audience with the same message, but cultivating personal relationships with your brand ambassadors would be a must if you desire authenticity. Otherwise, you just don’t know the values of those promoting your brand.
Fortunately, I took it in good humour just as Dmitry did and ran the story in Lucire, and you can reach your own conclusions about the wisdom of algorithms in marketing, particularly in brand ambassadorship.
Cash-strapped GM sells passenger car brands to SAIC to focus on trucks and SUVs
and:
SAIC builds passenger-car brand portfolio with Wuling, Baojun, Chevrolet, Roewe, MG, Buick and Cadillac
You can almost think of MG as Pontiac and Roewe as Oldsmobile … With the decimation of the GM line-up globally, and the segments they no longer field (e.g. C-segment cars in many markets), will they even have the investment needed to sustain the car brands?
I know they are saying this was all necessary to fund the electrification of the range and autonomous tech, but isn’t this the same company that nixed the EV1 and failed to make the Volt a Prius-beater?
The Chinese state wasn’t about creating “Chinese Leyland” when they forced SAIC and NAC to merge. They had much grander plans.
A few thoughts about Twitter from the last 24 hours, other than ‘Please leave grown-up discussions to grown-ups’: (a) it’s probably not a smart idea to get aggro (about a joke you don’t understand because you aren’t familiar with the culture) from your company’s account, especially when you don’t have a leg to stand on; (b) deleting your side of the conversation might be good if your boss ever checks, although on my end ‘replying to [your company name]’ is still there for all to see; and (c) if your job is ‘Chief Marketing Officer’ then it may pay to know that marketing is about understanding your audiences (including their culture), not about signalling that your workplace hires incompetently and division must rule the roost.
I’m not petty enough to name names (I’ve forgotten the person but I remember the company), but it was a reminder why Twitter has jumped the shark when some folks get so caught up in their insular worlds that opposing viewpoints must be shouted down. (And when that fails, to stalk the account and start a new thread.)
The crazy thing is, not only did this other Tweeter miss the joke that any Brit born, well, postwar would have got, I actually agreed with him politically and said so (rule number one in marketing: find common ground with your audience). Nevertheless, he decided to claim that I accused Britons of being racist (why would I accuse the entirety of my own nation—I am a dual national—of being racist? It’s nowhere in the exchange) among other things. That by hashtagging #dontmentionthewar in an attempt to explain that Euroscepticism has been part of British humour for decades meant that I was ‘obsessed by war’. Guess he never saw The Italian Job, either, and clearly missed when Fawlty Towers was voted the UK’s top sitcom. I also imagine him being very offended by this, but it only works because of the preconceived notions we have about ‘the Germans’:
The mostly British audience found it funny. Why? Because of a shared cultural heritage. There’s no shame in not getting it, just don’t get upset when others reference it.
It’s the classic ploy of ignoring the core message, getting angry for the sake of it, and when one doesn’t have anything to go on, to attack the messenger. I see enough of that on Facebook, and it’s a real shame that this is what a discussion looks like on Twitter for some people.
I need to get over my Schadenfreude as I watched this person stumble in a vain attempt to gain some ground, but sometimes people keep digging and digging. And I don’t even like watching accident scenes on the motorway.
And I really need to learn to mute those incapable of sticking to the facts—I can handle some situations where you get caught up in your emotions (we’re all guilty of this), but you shouldn’t be blinded by them.
What I do know full well now is that there is one firm out there with a marketing exec who fictionalizes what you said, and it makes you wonder if this is the way this firm behaves when there is a normal commercial dispute. Which might be the opposite to what the firm wished.
As one of my old law professors once said (I’m going to name-drop: it was the Rt Hon Prof Sir Geoffrey Palmer, KCMG, AC, QC, PC), ‘The more lawyers there are, the more poor lawyers there are.’ It’s always been the same in marketing: the more marketers there are, the more poor marketers there are. And God help those firms that let the latter have the keys to the corporate Twitter account.
I enjoyed that public law class with Prof Palmer, and I wish I could remember other direct quotations he made. (I remember various facts, just not sentences verbatim like that one—then again I don’t have the public law expertise of the brilliant Dr Caroline Morris, who sat behind me when we were undergrads.)
It’s still very civil on Mastodon, and one of the Tooters that I communicate with is an ex-Tweeter whose account was suspended. I followed that account and there was never anything, to my knowledge, that violated the TOS on it. But Twitter seems to be far harder to gauge in 2019–20 on just what will get you shut down. Guess it could happen any time to anyone. Shall we expect more in their election year? Be careful when commenting on US politics: it mightn’t be other Tweeters you need to worry about. And they could protect bots before they protect you.
Since I haven’t Instagrammed for ages—I think I only had one round of posting in mid-January—here’s how the sun looked to the west of my office. I am told the Canberra fires have done this. Canberra is some 2,300 km away. For my US readers, this is like saying a fire in Dallas has affected the sunlight in New York City.
I’ve had a big life change, and I think that’s why Instagramming has suddenly left my routine. I miss some of the contact, and some dear friends message me there, knowing that doing so on Facebook makes no sense. I did give the impression to one person, and I publicly apologize to her, that I stopped Instagramming because the company is owned by Facebook, but the fact is I’ve done my screen time for the day and I’ve no desire to check my phone and play with a buggy app. Looks like seven years (late 2012 to the beginning of 2020) was what it took for me to be Instagrammed out, shorter than Facebook, where it took 10 (2007 to 2017).
Companies in FCA’s and PSA’s histories did once produce the Plymouth Horizon, so historically there is some precedent to a trans-Atlantic arrangement—not to mention the type 220 and 179 minivans and the commercial vehicles currently in PSA’s and Fiat’s ranges.
This is a few days old, but it’s nice to know that these hurriedly written thoughts on a private Facebook group reflected what I read a day later in the automotive press.
Copied and pasted from the above (and yes, I know it should be e-208):
I read that as well, Jonathan. Elkann would be chairman and Tavares the CEO. I guess Fiat had to move on from talking with Renault while they have their internal squabbles. While some praise Marchionne, I thought it was foolish to let the less profitable marques suffer as he did—the global economy doesn’t stay buoyant all the time and at some point not everyone will want a hotted-up Alfa or Maserati. Especially as there seems to be no cohesive platform strategy. I think Fiat realizes the shambles it’s actually in despite what the share price says. There is some sense to have PSA platforms underpin a lot of Fiats (let’s face it, very little of the Fiat range is on a Fiat platform—there are GM, Mitsubishi, Mazda, Ford and PSA bits—and the old Grande Punto platform can only go so far), but the more premium marques will still have to have unique platforms.
Fiat really needs to do some rationalization of its own before approaching others but my sense is that it’s gone too far down this road and has no investment in either next-generation B- (Jeep Renegade) or C-platforms (Giulietta) where a lot of European sales will still lie. Its only real prize here is Jeep.
Tavares will be able to slash a great deal and Europe could look good quite quickly, but I doubt anyone has any focus on the US side of things other than Jeep. PSA has some limited experience in South America but it won’t be able to integrate that as easily. And neither has any real strength in China despite being early entrants, with, again, Jeep being the exception. (Peugeot, DS and Citroën are struggling in China.)
He had claimed that PSA was looking at some sort of alternative retail model for the US, but it also seemed a bit far off.
If this happens, I think Tavares will “do a Talbot” on anything Fiat-related in Europe, eventually killing the Fiat marque (with maybe just a 208e-based 500 remaining), and keep Alfa Romeo, Maserati and Jeep. Chrysler will remain with the Pacifica, Dodge might still have the Durango, but everything else would get the chop unless they consider bringing in a rebadged 508. Ram and Fiat Profissional will stay as separate entities. Fiat do Brasil will get some PSA tech. Then there might be some logic to what is left but I still feel Fiat has to get itself in order first.
On reflection, maybe I was a little harsh on Sergio, as ignoring the mass-market brands has left FCA, with a portfolio of specialist and premium ones, a reasonably good fit for an organization that has the opposite set of strengths.
One question remains: which is the cheap brand, the Plymouth, here? You can’t always go premium: sooner or later, economies weaken and people will want something entry-level. There may be wisdom to retaining Fiat in some shape or form. One more 108 variant can’t hurt …
Anyone notice a pattern here? That any company that owns Jeep eventually diminishes its own brand. Willys, Kaiser, AMC, Chrysler, and Fiat are either dead or no longer the forces they once were. Renault managed a controlling interest in AMC with 46·4 per cent in 1982, but that was bought by Chrysler five years later. At some stage, we must tire of these massive vehicles, and already there’s a suggestion that, in the US at least, nonconformist younger buyers are eyeing up sedans. Great if you’re Nissan in the US (and China), not so much if you’re Ford.
I have to agree with Yang Jian, managing editor of Automotive News China, that Baojun’s new models ‘obviously’ failed to reverse the brand’s sales’ decline.
It is obvious given that the vehicles are priced considerably above the previous ones, and despite its next-gen tech, there’s no real alignment with what Baojun stands for.
There might be a new logo (débuted January 2019) but GM expects that this, the new premium products, and (I would expect) other retail updates would undo nearly nine years of brand equity.
The associations of Baojun as an entry-level brand run deeply, and the new models are like, if you’ll pardon the analogy and the use of another car group, taking the next Audis and sticking a Škoda badge on them. Except even stylistically, the new Baojuns bear little resemblance to the old ones—they’re that radical a departure.
I wonder if it would be wiser to keep Baojun exactly where it was, and let it decline, while launching the new models under a more upscale GM brand, even one perceived as ‘foreign’ or ‘joint venture’ by Chinese consumers.
DaimlerChrysler made the mistake of killing Plymouth when it was surplus to requirements, then found itself without a budget brand when the late 2000s’ recession hit. Chrysler, once the upper-middle marque, had to fill the void.
There’s a reason companies like GM and Volkswagen have brands spanning the market: they feed buyers into the corporation, and there’s something for everyone.
And while it’s possible to move brands upscale, creating four lines where the base model prices exceed the highest price you have ever charged for your other base models is just too sudden a shift.
A rebrand should be done with consultation, and that should be factored in to any decision-making. In the 2010s, it should consider out-of-the-box suggestions, especially in an increasingly cluttered market-place. It should be launched internally first, then externally. A new logo would surface after months of exhaustive design work. The result should be something distinctive and meaningful that resonates with all audiences.
Meanwhile, here’s one done by my Alma Mater amongst false claims, poor analyses, and considerable opposition, with the resulting logo appearing a mere week after the powers-that-be voted to ignore the feedback. In branding circles, any professional will tell you that there’s no way a logo can appear that quickly—unless, of course, Victoria University of Wellington had no inclination to listen to any of its audiences during its “feedback” process. But then, maybe this was done in a hurry:
The result is flawed and lacks quality. Without even getting into the symbol or the typography, the hurried nature of this design is evident with the margin: the text is neither optically nor mathematically aligned, and accurately reflects the lack of consideration that this rebrand has followed. The one symbol I like, the ceremonial crest, does away with the type, and judging from the above, it’s just as well.
I like change, and my businesses have thrived on it. But this left much to be desired from the moment we got wind of it. It supplants a name sourced from Queen Victoria with the name of an even older, white, male historical figure, creates confusion with at least three universities that share its initials if it is to be abbreviated UoW (Woollongong, Wah, Winchester; meanwhile the University of Washington is UW), and offers little by way of differentiation.
Yes, there are other Victoria Universities out there. To me that’s a case of sticking with the name and marketing it more cleverly to be the dominant one—and forcing others to retrench. Where did the Kiwi desire to be number one go? Actually, how bad was the confusion, as, on the evidence, I’m unconvinced.
If it’s about attracting foreign students, then alumnus Callum Osborne’s suggestion of Victoria University of New Zealand is one example to trade on the nation brand, which rates highly.
There were many ways this could have gone, and at each turn amateurism and defeatism appeared, at least to my eyes, to be the themes. #UnWell
A letter I penned today to Prof Grant Guilford, Vice-Chancellor of Victoria University of Wellington. I support the official adoption of a Māori name (I thought it had one?) but removing Victoria is daft, for numerous reasons, not least the University’s flawed research, dealt with elsewhere.
Wellington, August 8, 2018
Prof Grant Guilford
Vice-Chancellor Victoria University of Wellington
PO Box 600
Wellington 6011
New Zealand
Dear Prof Guilford:
Re. Name change for Victoria University of Wellington
There have been many arguments against why Victoria University of Wellington should change its name. Count me in as endorsing the views of Mr Geoff McLay, whose feedback the University has already received.
To his comments, I would like to add several more.
First, since I graduated from Vic for the fourth time in 2000, branding—a subject I have an above-average knowledge of, being the co-chair of the Swedish think tank Medinge Group and with books and academic articles to my name—has become a more bottom-up affair. In lay terms, all successful brands need their community’s support to thrive. Not engaging that community properly, and putting forth unconvincing arguments for change when asked, fails ‘Branding 101’ by today’s standards. I don’t believe those of us favouring the status quo are a minority. We’re simply the ones who have engaged with the University.
As an alumnus, I have a great deal of pride in ‘Vic’, so much so that I have returned to support many of its programmes, namely Alumni as Mentors and the BA Internships. The University’s view of market-place confusion is, to my mind, a defeatist position, one which says, ‘Oh, there’s confusion, so let’s cede our position to the others who lay claim to “Victoria”.’ That’s not the attitude that I have toward our fine university.
The alternative is to stand firm and build the brand on a global scale, something that is more than possible if the University were to adopt some lessons from international marketing and branding.
I have done it numerous times professionally, and for New Zealand companies with strictly limited budgets, and the University has an enviable and proud network of alumni who, I suspect, are willing to help.
Vic has told us for years it is ‘world-class’, and I expect it to stand by those claims—including confidence in its own name, not unlike the great universities in the US and UK. A lot of it is in the way the brand is positioned. Confidence goes a long way, including confidence in saying, ‘This is the real Victoria.’
Kiwis are adept at being more authentic, something which a strong branding campaign would highlight.
As alumnus, and fellow St Mark’s old boy, Callum Osborne notes, if there is to be a geographic qualifier, New Zealand has far more brand equity than Wellington, so if a change is to occur, then ‘Victoria University of New Zealand’ is an appropriate way forward.
‘University of Wellington’ says little, and there are Wellingtons elsewhere, too.
This isn’t about apeing others, but being so distinct in the way the University communicates, symbolizes and differentiates itself to all of its audiences. To be fair, I have only seen pockets of that since graduating, yet I believe it is possible, and it can be unlocked.
There’s a rumour circulating that Fiat (specifically, Fiat Chrysler Automobiles, or FCA) will kill the Chrysler marque today.
The range currently consists of two models: the ageing 300 and the relatively fresh Pacifica.
It seems to be another step in the mismanagement of car marques, especially US ones, something I wrote about many years ago when Condé Nast Portfolio was still running. (Note: it was a published letter to the editor, not an article.)
Marques do disappear, but when the wrong ones get killed off, long-term it leaves the company in a weaker state.
DaimlerChrysler found that out in the early 2000s when it decided Plymouth was surplus to requirements. Suddenly, its entry-level budget brand was gone—a very bad move when the recession hit later that decade. Plymouth had been conceived as a low-priced line that kept Chrysler afloat during the Depression.
DaimlerChrysler then found itself having to sell Plymouth products under the Chrysler marque, which was traditionally the priciest between Plymouth, Dodge and Chrysler.
Today’s Chrysler resembles, at least in market ambition, the one of old, where it offers reasonably good quality vehicles, with Plymouth a distant memory.
It also offers Fiat a relatively premium brand in the US market. It’s not Jeep, Ram or Dodge, all of which have very different brands, messages and brand equity.
The fact it is light on product could have been solved long ago if Fiat had adopted the sort of platform-sharing that is now commonplace in the car world—you only have to look at Volkswagen and the Renault–Nissan Alliance, now Renault Nissan Mitsubishi. Even Jaguar Land Rover is realizing economies of scale with Jaguar SUVs and a car-like Range Rover (the Velar).
While Chrysler found that the 200 had flopped, there was always room for a premium, American SUV to take over from the Aspen, for example. If Jeep can build SUVs on Punto and Giulietta platforms, why couldn’t Chrysler, aimed at very different buyers?
The truth is that Fiat has a very confusing platform strategy, something I alluded to in earlier posts both here and in Drivetribe, and there appear to be no signs of bringing any harmony to the mess.
The firm hasn’t been properly merged, and not enough thought has been given to reducing platforms, and sharing them between marques. There’s more in common on this front between Fiat and British Leyland than between Fiat and Volkswagen, which it once vied with to be Europe’s number-one.
The domestic range has cars on platforms shared with Ford, Chrysler and GM, not to mention OEM vehicles from Mazda, Mitsubishi and Peugeot. I might not love SUVs, but the public does, and the Fiat range is light on them. There’s not enough of a global effort, either: the Ottimo and Viaggio are Italian-styled, based on the Alfa Romeo Giulietta (or more specifically the Dodge Dart), and they are only sold in China—a ridiculous situation when Fiat doesn’t have a CD-segment saloon in any other market. The rationalization of the range in South America has helped, with the Argo and Cronos streamlining a confusing array of Palio, Linea, Siena and Grand Siena models, but they bear little resemblance to the models on offer in Europe.
Lancia, which had benefited from Fiat platforms, is practically dead, its 500-based, Polish-made Ypsilon being deleted this year. As models at Lancia died out, they were not replaced. Yet things could have been so much better, had Fiat allowed Lancia the sort of freedom it needed to sell Italian luxury and innovation. Those values are different from Alfa Romeo’s, yet through its conduct, Fiat seems to think that if Alfa and Lancia have similar prices, then they must vie for similar buyers. They never did. It seems to believe that costs will be saved through axing marques and model lines, which can be true in some cases—but those cases tend to presume that what remains, or what replaces them, is stronger.
I’m not being a Luddite or pining for the “good old days” when it comes to Chrysler. I hold no romantic notions for the brand. But I do know that once they’re gone, the firm doesn’t necessarily find its resources are freed up to pursue surviving lines. It finds that it’s lost a segment that it once fielded.
It’s sadder to realize that Chrysler, as a group, was much stronger in the early 1990s, with record development times and good platform-sharing. Plymouth was in the process of developing its own identity—the PT Cruiser and Prowler heralded a new retromodern design language that was to spread throughout the range, while utilizing the same platforms as Chryslers and Dodges.
Fiat itself, too, was a strong company at this same period, riding high on great styling, with a reinvigorated line-up. Think Bravo, Brava, Barchetta, Coupé Fiat, 456, Quattroporte, Delta, Dedra, Kappa, 145, 146, GTV and Spider. A lot of these vehicles were talked-about, and considered some of the most stylish in Europe.
Last year, in Europe, luxury marques Mercedes-Benz, BMW and Audi all outsold Fiat, supposedly a mass-market brand. Its market share in Italy and Brazil, traditionally places where it was strong, has continued to dip. In the US, it’s the same story, with Mercedes-Benz, BMW and Audi all outselling Chrysler both last year and year-to-date.
It’s all very romantic, and good press, to show off premium Alfa Romeos and Maseratis, or money-making Jeeps, but many of these models don’t donate any of their architecture to Fiat’s troubled brands.
In 2018, when you see that certain Fiat marques aren’t getting access to platforms, you have to wonder why—especially when so many other big players don’t place such restrictions on their brands.
A new 500 and Panda might be around the corner, but we’ll need to see far more logic applied to the business, especially with Alfa’s Mito and Giulietta looking more dated, Fiat’s range in a mess, and Chrysler barely making an effort in China, a market where its sort of positioning would have attracted luxury-conscious buyers who might prefer foreign brands, such as Buick.
Even if Chrysler gets a stay of execution, Sergio Marchionne’s successor will have a very tough job ahead.
The Ford Focus Active: by the turn of the decade, this will be the only four-door passenger car Ford will sell in the US and Canada
In a surprise move, Ford has announced that it will cease selling passenger cars in the US and Canada by the early 2020s, excepting the Mustang and the Focus Active.
The announcement was actually for ‘North America’ but as Ford of México does a reasonable trade on Figos and Fiestas, it’s hard to see the policy be uniform right across the continent.
It’s a cost-cutting exercise, designed to save $25,500 million in five years, and trucks and SUVs simply make more money for them. Small cars mean small profits. In fact, car sales lag those of the F-series, Escape and Explorer in the US. Shares have risen on the news.
That means Americans and Canadians will say goodbye to the Fiesta, Fusion (the four-door sedan counterpart to the Mondeo) and Taurus, the last of which is already superseded in China. If you liked the cooking RS and STs, then too bad. Lincolns are losing money for Ford, too, so maybe the Continental will vanish—given the Fusion is history, the MKZ will follow. That doesn’t leave much in the Lincoln line-up.
My initial reaction was that the economies of scale would worsen: if you’re not developing for a global market, will development costs be successfully amortized in the same period? We have, however, seen the Japanese do reasonably well with products strictly for the North American market, e.g. certain Acuras and Hondas that are sold only in their neck of the woods. We also know most of the costs of the car are in the platform and architecture, and Ford has shown decent adaptability, particularly with the C519 Focus (the recently released Mk IV).
Ford says the cuts will come from sales and marketing, engineering and product development, as well as material costs, manufacturing and IT, in that order, according to Automotive News.
The fact that product development and engineering rank so highly there is worrying to me.
They’re bandying the word efficiency about a lot, and that always has me worried. That’s the word you used to hear from corporate raiders like Slater Walker. Things can look efficient while they’re being weakened.
CEO Jim Hackett says he’s feeding the healthy parts of the business, ‘and deal decisively with the parts that destroy value.’
While it’s true that the crossover, SUV and truck markets are strong, as they are in many parts of the world, I can’t help but think that Ford isn’t preparing itself for tougher future scenarios.
Energy crises can come unpredictably, for one. Ford was late to the downsizing game in the 1970s because it saw the dollar signs with big cars. By 1977, GM had stolen a real march on Ford. By the turn of the decade, Chrysler was back from the brink with fuel-efficient cars while Ford sailed into the red.
Chrysler found itself too truck- and SUV-heavy with the recession of the late 2000s, and its entry-level nameplate Plymouth had already vanished, thanks to mismanagement by Daimler earlier in the century.
While there’s not always a need for a full line—AMC taught us that extending yourself too far isn’t always wise—I wonder if Ford is leaving itself vulnerable.
Crossovers like the Escape, which might outsell the Fusion, are being beaten in the market-place by the likes of the Toyota RAV4, so it’s not as though Ford is that strong in all the markets it wishes to remain in.
GM, having pulled out of Europe and Russia, might be in better shape because of its position in China. Ford trails GM when it comes to its Chinese footprint, although it will remain in Europe.
Ford’s Jim Farley says the company is looking at new types of vehicles that are spacious, versatile and economical, which hopefully will fill the gap should economic surprises surface. Because you need something cheap to hook buyers and get them to the brand. That’s not going to happen if Focus Active is the smallest car in the line-up.
Ford is likely to have these on global platforms. But that signals to me a real need to remain strong in R&D. Failing that, Ford is looking to partner up with someone, and it may already have an idea who that is.
I am speculating here, since I don’t have any figures outlining what proportion of revenue is devoted to that area.
Nevertheless, this sounds like an appeasement of Wall Street.
That leaves one concern over nameplates. Ford has successfully introduced nameplates over the years because the product was right: Cortina, Mustang, Escort, Capri, Fiesta and Focus among them. But it has also failed by killing nameplates and replacing them with ones that had no real goodwill, such as Five Hundred and Freestyle.
Whatever Ford has in mind, I hope for their sake that the new product is compelling, as much as the Mustang and Fiesta were when they appeared on the market. Both emerged in the wake of economic recessions, with Ford innovating because it had to.
In this century, Alan Mulally’s time at Ford had a measured, sensible approach, where you could understand the future. There are question marks over what Hackett has planned, and usually we have some clue what these new products will be four years out. All I know of is that the Ranger will make it to the US again, boosting truck sales, but that’s hardly an innovation. That’s just filling a market niche with familiar product.
Will Ford do Brasil come up with something that can be sold in both North and South America? Perhaps the next-generation Ecosport?
There are lessons in history that shouldn’t be ignored, and Ford has one of the most interesting pasts of any car maker. There is, however, a feeling from the announcement that this heralds a time of retrenchment, as its profits fall globally, and net income in the US rising for the first quarter in part due to a lower tax rate.
Remember, Isuzu also once thought it was a good idea to stop selling passenger cars and focus on SUVs and trucks. And they’re no longer around in North America.
