Monday, November 24, 2008

Would Would a Re-organized Ford Motor Company Look Like?

If F. M. C. is allowed to file for Bankruptcy, here's my estimation of how re-organization would affect Ford.


1. Reduce the number of lines offered under Ford. Perhaps merge Mazda under the Ford nameplate in order to gain an edge in fuel efficient car offerings. Keep Volvo separate -- it's brand has its own identity. Also, merge Mercury under the Ford nameplate as its identity has been totally subverted under the Ford name anyway and its models are simply higher priced versions of models offered under Ford such as the Taurus/Sable line.

2. Reduce the number of models offered under each of the remaining brands: Ford, Lincoln and Volvo:
  • For the Ford line, keep the highly successful Fusion and Taurus models; drop all other car models including the Mercury; and merge the Mazda 3, 4, and 5 models under Ford and drop the rest of the Mazda line. For the truck division, merge their low-end SUV line, including those in the Lincoln, Mazda, and Volvo lines, into one model combining the best features of each; keep the best-selling F-series pickups; offer one high end SUV model; and combine the Ranger, Mazda B-series, and Explorer Sport Trac into one compact truck model that fuses the best of each into a single unit. While reducing the number of models offered, expand the number of option packages each model offers, so customers may customize any vehicle purchases to their individual tastes and desires.
  • For the Lincoln line, drop all truck models and have the Ford truck line pick up the option packages the Lincoln trucks offered. Merge the Mercury Marquis into the Lincoln line as a mid-priced luxury car and keep its low-end MKZ model and high-end Town Car.
  • For the Volvo line, offer one basic model with sedan and station wagon versions. Merge its CUV/SUV lines into Ford's truck division with all the option packages.
  • Merge all the niche cars under Ford: the Mustang, Mazda Miata and RX8; and offer them as low, mid and high price sport models.
  • Finally, reduce the number of manufacturing sites to two, perhaps four -- one, or two located east and one, or two located west. Have one, maybe two mega sites that build all the Ford and Volvo car lines and one, maybe two mega sites that build all the truck lines.
By dropping brands that are not selling well enough to justify their existence within the new Ford structure and combining all manufacturing into two maybe four lines, F. M. C. would be able to compete effectively in the 21st century auto market. By cutting all the bloat they're carrying now, hopefully, they will take these increased saving and invest them into their own R&D department that sorely lacks attention and just maybe we can see Ford return as a leader in innovation in automobile technology.

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