Ford's Way Forward Still Includes New Products

Fresh products cost money. It's no secret in the business that an easy way to save dollars is to cut programs. The effects are almost immediate and for a short time things look a little better. Bitter reality sets in a few years down the road when those new products would have debuted: long term market survival in the automotive industry relies up on a constant renewal of your product lines.

It is great news to hear in this Detroit News story that Ford has not sacrificed any major vehicle programs for the United States at the altar of savings. Ford has delayed only one new product program, described as a European crossover that had not even been announced, and which I speculate is the C-Max. Some existing products will have delayed refreshes, but for the most part the original mission is still a go.

Does Ford have it right? Should it still be investing so heavily in smaller products now that gas prices are sinking? My answer to all of that is "Yup." Let's look into the pipeline: the refreshed Fusion/Milan/MKZ are coming shortly and it is vital that Ford keep these products relevant. What Ford doesn't need to do is lose momentum like it did with the Taurus. Speaking of which, a new Taurus will bow at the Detroit Auto Show and spy shots that we've seen of the car look promising. Of course the new Mustang will debut in just a week's time, a needed refresh to keep Ford within reach of competitors. The small Fiesta promises to revitalize Ford's position in a key segment. The Fiesta promises to give the Fit a run for its money. Also important will be a new Focus, finally synchronized once again with its European brethren. Mercury will be getting a yet to be announced small car. The new Transit Connect small van will be a hit with businesses looking to keep a lid on expenses. A car-based Explorer will hopefully lure back buyers who left the current model due to its truck-based ways.

I don't see any fat in that lineup. The F-150 is fresh out of the gate and now Ford is looking to bolster its car fortunes. A few months ago, I would have said that it was a shame that more of these new products weren't available sooner, but given the fact that no manufacturer is selling that well right now, I think cadence is acceptable.

source: detroit news