In light of the brutal conditions in the new car market, many analysts have come to the conclusion that Ford Motor Company is in fact the “Big Three” automaker with the highest likelihood of surviving the months and years ahead.
For one thing, even though its stock is near worthless at $2, Ford has more saleable assets than its rivals at Chrysler and GM.
Its most valuable one has to be its sizeable stake in the still rather autonomous and always innovative Mazda Motors. While the Maza 3 may be based on a Ford Focus, its quality levels, style, and sheer drive-ability are all in a class by itself. When you add in the fun-to-drive quotient, it is truly the only competitor for the all powerful Honda Civic.
We may hear you cry, “But didn’t Ford borrow against so many of its assets a few years ago that even “The Blue Oval” logo has been put up for potential pawning?” Yes, we have heard the same things but Ford more so than its rivals has set upon a course to focus on smaller, more fuel efficient vehicles. We know GM has the “glory hog” Chevrolet Volt but who knows if that thing will ever make them money. In all likelihood, there's a good chance the Volt will lose GM millions of dollars but only manage to grant them that elusive “it” factor. The “zsa-zsa-zsu,” if you will.
Ford, on the other hand, has the Ford Fiesta (aka: Verve) that, while rather plebian in concept, will give them a world class fuel sipper once it comes to market. The problem for Ford, though, is that this near guaranteed hit car is only planned to arrive in 2010 or as late as 2011. If it's going to wait that long, it's not surprising the upper-ups are considering hocking Mazda and find a way to offload Volvo. Come on Ford, work a little harder and get the Fiesta/Verve to market no later than the end of calendar year 2009.
But not only did Ford go on that huge borrowing spree a few years ago as a means to keep the lights on at headquarters, but it was also done as a guarantee against a possible sales slowdown in the years to come. Is there someone at the company who is psychic? Did the execs actually anticipate a sales trend and prepare for it?
Ford usually manages to find sales success by copying another model and merely refining the concept. Example number 1: The Ford Explorer and the Jeep Cherokee. AMC/Jeep came up with that SUV concept first, the Explorer was merely a more spacious and comfortable variation on the theme. Example number 2: The 1986 Ford Taurus was merely the first “Americanized” play on the Honda Accord playbook. Only the Taurus was just that little bit bigger—a progenitor of the “upsizing” of all Japanese sedans from the Accord to the Camry.
Our view? Ford needs to put its nose to the proverbial grindstone and accelerate the introduction of the Fiesta/Verve and the next generation Focus. The future of this storied institution and our entire economy may hang in the balance.