TrainTrac
Well-Known Member
Two more interesting pieces on the state of the American auto industry:
The first step is admitting you have a problem
But is Ford's recovery plan going to be enough?
David Booth
National Post
Friday, January 06, 2006
Mark Fields looks way too young to be the executive vice-president of Ford Motor Company. He's way too slick, talks too much like an MBA and his suits are far too Armani-like to garner the undying respect of the average autojournalist.
We motor scribes are far happier with a Bob Lutz with grease under his fingernails and horsepower coursing through his veins. Credibility is everything these days if you're going to shill for Detroit. Designer eyeglasses are not the kind of thing that impress the paparazzi more comfortable in Nike than Bruno Magli.
That said, Fields made an impression delivering this year's keynote speech at the Greater Los Angeles Auto Show. For one thing, he was remarkably candid about Ford's current condition, citing that the company was in a desperate situation. He admitted Ford is now facing "the cumulative impact of business decisions made -- or not made -- in Detroit over the past several years, or, in some cases, decades."
Included in those decisions was Fields' stark admission that "we took our eye off the ball for years when it came to sedans. They just weren't attractive enough when we were feasting on the addictive profitability of trucks and SUVs."
But rather than spending much time lamenting past mistakes, Fields points to the opportunities available to domestic manufacturers, frequently peppering his speech with sports metaphors, the most common assertion one used by coaches in virtually every sport from hockey to football. "Ford has to start playing offence rather than defence," was Fields' constant refrain throughout his entire 30-minute speech, enough so that more than a few autojournalists started wondering if perhaps Ford's executive vice-president and president of the Americas wasn't actually Pat Riley in disguise.
Nonetheless, Fields managed to at least partially convince a skeptical audience that Ford is ready to "make the fundamental changes needed to make it in these trying times." Of course, being an American company, Ford has a rah-rah catchphrase for its turnaround plan -- Red, White and Bold.
Fields insists he's not wrapping himself in the American flag. Nor is Red, White and Bold likely to become an advertising slogan or tagline on a branding campaign.
Fields explains that it's merely a rallying cry for his most passionate assertion that "Americans really do want to buy American brands" and that Ford "will compete vigorously to be America's car company.
"Our way forward," says Field, "is not to retreat into smaller markets but a retaking of the American marketplace. There remains a huge -- and not yet fully realized -- market for Americans cars in [the United States]. It is waiting to be seized."
Quite how Ford is going to seize this opportunity, Fields wouldn't detail, though he was quite adamant the company "can't win the hearts and minds of the American consumer with [cost] efficiencies alone."
He did, however, state that Ford will be getting back into the business of building small cars, promising a new concept car at next week's Detroit auto show that "proves small cars can be bold, American and innovative." And that this latest concept "will underscore just how serious Ford is about being a major player in this segment."
It's part of a larger program that Fields calls Ford's Way Forward, a blueprint for the future of the company that will be revealed on Jan. 23. Details, of course, are very hush-hush, but the one hint we can take from Fields' speech in Los Angeles is that Dearborn's road map will be vastly different from General Motors'. In fact, Fields took a stab at his crosstown rival, claiming that "befo