Ford’s drastic decision
It’s all over the news, and I’m sure that everyone is tired of hearing about it. Yes, Ford has made the decision to start phasing out their cars (except the Mustang) for the U.S. market starting this year. You’ve probably seen every imaginable angle of the story, from why it will be the best decision Ford has ever made, to why it’s the worst decision in the history of the modern automobile. Every headline like this requires a response from the press and the people. This is a big announcement, and I have no doubt that it will be scrutinized for years. That being said, I have to chime in here as well.
Anybody can crunch the numbers all they like, and it won’t be hard to see that SUVs and trucks are a much more profitable segment of the automotive industry, than cars, at least in the United States. If that is the only excuse to do something as drastic as this, there is a fatal flaw in the way that Ford is approaching this whole situation. I think Ford is failing to see the reality of… reality.
While falling demand for cars was cited as one of the reasons to can at least 4 models from their lineup, Ford also cited decreased profitability in the small, midsize, and large car segments of the market. This is where the first issue makes its appearance. There is still demand for cars. It’s not like there isn’t anybody who buys cars anymore. There are simply less people that buy cars now than SUVs, and more people that buy cars now than several years ago. Getting rid of the Fiesta, C-Max, Fusion, and Taurus may save Ford some money now, but they will lose customers because of this. Customers are what bring in the money, and if what brings in the money starts taking their money elsewhere, eventually there will be repercussions.
Customers will start to disappear. Ford has one of the more loyal customer bases in the automotive industry. What makes customers loyal to a brand? A large part has to do with what products are available. The Ford F-150 is the best-selling truck in America, and it is rather good. It has a great reputation, but there are quite a few people who will buy a Ford car because they have a Ford truck that just happens to be really good. Ford currently offers a full line of cars, trucks, and SUVs that meet just about everyone’s needs, thus creating a brand loyalty. The people who want affordable transportation, a family friendly car, or a hot hatchback will now have to look elsewhere to meet their wants and needs. That is no small number of people.
The largest problem with Ford pulling its cars is the uncertainty of the future, and even to some degree, the present. Everyone is moving toward hybridization and electrification, and even if they aren’t, engines are much more efficient now than they were just a few years ago. Ford is overlooking the possibility that gas prices will rise again and the economy will fall again. When one or both of these things happen, the higher initial cost of buying an SUV or truck and the higher gas prices to keep them filled will result in less sales and the need to buy more fuel efficient vehicles. While the economy can change literally overnight and gas prices can soar over a period of just a few weeks, cars can’t be truly developed, tested, and opened to the consumer market in under a year.
I did see a media source say that if Ford discontinues their Unites States-based cars and something drastic does happen, it wouldn’t be that hard to just bring the European cars back overseas to sell in the U.S. That may be true, but it isn’t as simple of a process as just making more cars and shipping some of them over to our shores. This would still take time, and it wouldn’t undo any damage that had already been done.
Ford is making a major mistake in pulling their cars from the U.S. market. It will come back to haunt them for years after everything is said and done. I’m not personally as sad to see the Fusion and Taurus disappear as I will be with the Fiesta ST, Focus ST, and Focus RS. They are all fantastic and catered perfectly to their respective markets. Other manufacturers aren’t pulling their cars, and they will reap the benefits of having previous Ford customers looking to them for answers. It’s a good thing that right now is one of the best times in history to buy a small or midsize family sedan or hatchback.
I wish all the would-be Ford car owners the best of luck in finding their next mode of transportation in the next few years. If you need any advice when purchasing a new car after 20 years of owning Ford Tauruses, Escorts, and Fusions, we will be happy to help you out. I also have to thank Mitsubishi for paving the way for this to happen. If it weren’t so devastatingly clear what happens when you pulled all but one car from the market, it wouldn’t have been as easy to write this and tell Ford how big of a mistake this actually is.
