Tuesday, July 22, 2008

Across the Atlantic: Ford Seeks European Options in U.S.

In 2006, Ford CEO Alan Mulally came to Ford with a breath of fresh air.

After years of dragging company strategy, the newly instated Mulally announced his plan to unify Ford's global product line. This Thursday, Ford is expected to announce that it will fast-track at least one of its European passenger cars for U.S. production.

Its definitely a step in the right direction, but what vehicle makes the cut remains to be seen. Mulally is pushing for two vehicles, the Ford Mondeo and the European Ford Focus, while still others are trying to persuade Ford to sell the tiny Ka.

Why not just export from Europe? First, the weak U.S. dollar would make Ford a loser even before the vehicle made it to the showroom. Secondly, these vehicles, while fine by European standards, just won't make the cut for U.S. federal regulations.

Several "old school" strategists within Ford are resisting this move, and with good reason. Several past attempts to sell certain vehicles globally still make managers cringe, but with rising oil prices and a more environmentally conscious generation it is obvious Ford needs to shift their focus (Ford pun intended). With an updated Taurus due out next year and increased talk of adding well-performing European cars to the American repertoire, Ford has accepted the changing face of the vehicle market.

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