Ford Should Look At Consumer Needs Regarding Volvo Sale Blog Post at Automotive.com
»Locate a Dealer»Find a Used Car»Get Financing

Ford Should Look At Consumer Needs Regarding Volvo Sale

Posted July 25 2007 04:54 AM by staff 
Filed under: Miscellaneous, Volvo


Some say yes while Ford is saying no.



In any event, speculation is running wild, and analysts are throwing their two cents into the argument.

Some pundits say what's best for the shareholders should be the dominant call in deciding to sell or not to sell. Others call for an analysis of the needs of the consumers who buy the cars.

Jerry Marks submits to SeekingAlpha a different view, that of the consumer. He identify these issues: the need for a clear product offering; value; proposition; and safety.

First, the need for a clear product offering. These pundits argue that the best way to offer product is through a good, better, and best method. Moreover, say these pundits, the differentiation can be identified by brand name. Some would break Ford up like this: Mercury as the value line; Ford as the 'better' line and Lincoln could be the 'best' line. Jaguar, Volvo, and Lincoln, say pundits, bring confusion to the 'best' line.

A clear value proposition ask how the consumer should be looking at the brand. In the case of Volvo, for example, safety is the value proposition. 

In short, what these pundits are saying is that each division of Ford should have its own identity. No overlapping. If there is, jettison one division to avoid confusion.

Our take? Perhaps this philosophy should be considered. Really, though, it's not really no. Personally we'd add all elements of an automobile manufacturer's business should be considered when there are thoughts of selling or not selling a division.



COMMUNITY COMMENTS
Edward A. Sanchez   (July 25 2007 06:28 AM)

Mercury has never been like Plymouth was to Chrysler. Mercury was always (in theory) a cut above Ford, and paired with Lincoln in the showroom. Certainly Ford has taken advantage of some of Volvo's safety expertise, but have been otherwise too distracted with other management headaches to give it the attention it deserved.

Other than the quick initial cash infusion, I'd say Volvo succeeded in spite of Ford management, not because of it.
 
Add a Comment: (Must Be Registered)
User Name
Not Registered?    Signup Here
Password
 
Comment
Blogs Widget

Add live, updating blogs on your desktop or webtop. Download our free widget.