Ford’s future will be ‘iconic’ not ‘boring’
Ford CEO Jim Farley made a striking announcement during an interview with Britain’s Car Magazine, at an event ostensibly designed to announce the Explorer’s arrival in European markets – a reverse Christopher Columbus moment, if you will.
“We’re getting out of the boring car industry and into the iconic car industry,” he said Car magazine in the interview.
Related: 2024 GMC 2500 AT4 vs. 2024 Ford F-250 Tremor: Who Takes the Crown?
We’ve been here before
This isn’t the first time Ford has trimmed its lineup to focus on a small number of its most profitable (and expensive) models. Although the Mondeo is one of the models slated to launch in Europe as part of Jim Farley’s announcement, under the hood it’s actually the same car as the much-loved Fusion, just sold under a different name. Ford stopped selling the Fusion in the US in 2020.
Ford
Then there’s the Focus, which has been scheduled for years to be discontinued in 2025. The Fiesta was killed in 2023. The Flex in 2019. The C-Max in 2018 and 2019 for the regular and hybrid models respectively. The last Taurus also rolled off the factory floor in 2019.
‘Boring’ as code for ‘affordable’
What all these models had in common was that they were priced lower than Ford’s other offerings, but still high for their market segments. Ford is no stranger to cutting its most affordable (and therefore least profitable) models. Once again, it appears the company is turning away from its roots as the name that brought cars to the masses, and is instead focusing on serving wealthier customers.
Ford
A notable exception to this trend is the Ford Maverick. Although it’s a pickup and not a car, it remains perhaps the most affordable car in its class that Ford has to offer. However, the trend is clear: bigger, faster and more expensive.
Compete with Porsche, not with China
In the interview, Farley emphasized that Ford’s future lies in higher-end markets. He said:
“We can compete with Porsche with the Mustang; it is the best-selling sports coupe in the world. We are going to invest in that brand and become stronger and stronger.”
Ford
Given his previous dire warnings about Chinese electric cars, it’s not hard to imagine that Farley’s own solution to hyper-competitive Chinese cars is to… just not compete with them. Ford appears on track to completely exit the less profitable and soon-to-be crowded low-cost car markets and focus solely on the wealthy.
Related: Ford CEO says China’s EV industry is the biggest threat to his company
Raptor’s success story is a model for the future
Jim Farley highlighted the success Ford has had with the Raptor truck as indicative of where he would like to see the brand as a whole go. Introduced in 2010 as the premium version of Ford’s iconic F-150, the Raptor has enjoyed great success in the US and Europe. With more features and a higher price tag, Raptor is considered a great success by many.
“The Raptor story is a great example of where I think our passenger cars need to go,” says Farley.
Is Ford setting himself up for failure with unrealistic expectations?
Raptor, Mustang, Bronco and EVs are being prioritized in the hope that they will continue to perform. But as we’ve already reported, the European EV market has been on somewhat of a shaky footing lately, and EV sales have been sluggish in the US as well.
Ford
Related: 2024 Ford Bronco Everglades: What Makes This Snorkel-Equipped Bronco a Machine to Conquer All Trails?
Although Chinese electric vehicles have yet to gain a foothold in the US, they are gaining one in Europe. However, there is no shortage of luxury brands already established on both sides of the Atlantic. Ford is trying to transition from a brand for the common man to a brand for the wealthy thrill seeker, and could end up walking the precarious line between the two if it isn’t able to make enough of an impact.
Final thoughts
Rapid growth is difficult to predict and replicate. It’s even harder when there are so many rivals trying to do the same thing. It may be that Ford, under Jim Farley’s leadership, can continue that trend and make big gains… but perhaps these ambitions will prove more difficult to achieve than initially hoped if Ford fails to produce winner after winner, as they seem to expect.
Related: There’s an unexpected solution that could redefine zero-emission driving
Leave a Comment