How Ford Survived The Auto Apocalypse
Between The Big Three auto makers – Chrysler, General Motors and Ford – the latter has managed to survive with little help from Government loans or the threat of buyouts. How is this possible? There are several reasons; some facts, others are strong theories, which helped the Ford Motor Company stay on top of the American Automotive Apocalypse.
Ford Brand Loyalty
Out of the few remaining American auto companies Ford stays strong with a high rate of return customers. Ford owners are some of the most passionate car buyers this country has seen. In 2005, Ford dealers reported a 51% return on Ford buyers (based on trade-ins and leases) and 50% on Mercury. Today, Ford dealers are holding steady about sales of Chrysler and GM cars. Credit, which most people use some amount of when looking into new rides, is also still good with Ford. According to Detroit News: “Ford Credit has demonstrated that it can still borrow money at relatively attractive rates, raising $1.9 billion through asset-backed loans and another $900 million through unsecured loans. It also has applied to form an industrial bank subsidiary that would allow it to borrow money at more favorable rates.”
Stronger Products & Classic Cars
Ford vehicles have always been a staple of the American psyche – from the classic Mustang to hard working pickups like Ranger and F-150. Solid models from Lincoln and Mercury also add to Ford Motor Company’s staying power. Not a day goes by in any major city where we don’t see a Crown Victoria Taxi or Lincoln Town Car Livery Cab. Lincoln has even been branded the “American BMW.” But gas guzzling trucks or sports cars can’t keep a company afloat in 2009…
Eco-Friendly Automobiles
One of the reasons Ford hasn’t needed mass amounts of government/private loans is due to the technology grants they’ve accepted for testing and production of alternative fuels/eco-friendly automobiles. Smaller, more fuel efficient cars like the Focus and Fiesta have attracted a new class of auto shoppers, who want to stop at the pump as little as possible.
Blue Collar Support
Green drivers aren’t the only large market Ford is tackling – Ford Trucks have successfully targeted the blue collar segment. From Econolines driven by your neighborhood plumber to the hauling-ass capability of an F-250, Ford pickups and vans are used nation-wide by “ham and eggers.” A new ad campaign starring Dirty Jobs host Mike Rowe also targets working class consumers. It’s a chance for the company to grab blue collar buyers who may be tapering off from driving in a Dodge Ram or Chevy Suburban. It may be the perfect time, as we read reports of GM brand cuts and Chrysler dealer closures, Ford can jump in and take its palce as a solid American Car seller.
Leave a Reply