Ford's Get Well Plan

Following up on my previous post, I tried to read about Detroit's reinvention/rescue plans. Ford emerged as the only beacon of hope. While I must admit that I did not follow any rigorous research procedure to follow the trend, I'd be surprised to learn otherwise, even if I had.

Incremental improvements are just as important as breakthrough innovations. Ford seems to have gotten this straight in its approach toward addressing the current crisis. Needless to say, this approach can help any company to its better days, especially when operations are aligned with the right vision. While Ford's share may not reflect this promise, it is very much a promise today -- untested, but full of potential.

Ford Explorer's 2011 model is on a diet plan to shed more than 150 pounds, with lighter weight steel. The plan also involves an "Ecoboost" engine that leverages sophisticated software from the 21st century and fuel efficiency techniques that date back to 1940s. It seems that these technologies could allow Explorer to supercede Toyota's Highlander Hybrid in highway fuel economy.

Even the best hybrid cars come at a premium today, and the return on investment is not clearly superior to that of regular cars that are otherwise fuel efficient and of high quality. There is a lot of buzz about electric cars, but it would be wishful thinking to hope that we will somehow be able to leapfrog both the technology and the cost differential at the same time. Given that the average car-buyer will try to get the most bang for her [based on Mark Penn's comments on car-buying soccer moms who represent the majority of car-buyers in the US, from his book Microtrends] buck, and that she will do so in a time when global sustainability will be put to test, with rising demand for oil and other commodities across the world, the demand for a fuel efficient automobile should be on the rise. This should be the case, at least for the next decade, assuming that we will have cost effective options that are also fuel efficient, by then.

There is a demand, and Ford seems to be eager to supply. Will the sale happen? That is anybody's guess at this time. All I can say is that Ford is full of promise today.