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The Future of Ford's Mid-Sized Car Business

Note: this is sort of a “remix” coming out of my Seeking Alpha submission of the previous post on the Ford Mondeo only with a focus on how to tell when Ford finally “gets it”, and starts to display signals that it is beginning to understand how to better compete in its home market. I.e. the usual some old stuff, some new, probably still worth reading.  

One thing I really like about traveling to Europe is looking at the subtle differences between cars that sold in Europe and in the U.S., in addition to checking out the cars that are only sold in Europe. Last time I was there I saw a fairly sporty looking car that I assumed was either a VW or a European brand that isn’t sold here; in the end the make didn’t matter because it was something that I definitely wanted to test drive. As it turns out the car is produced by a company whose products this happy Audi and BMW driver would never consider: Ford.

The car is the new Ford Mondeo a car designed by Ford Europe and based on a platform designed by Volvo, a platform it doesn’t share with Ford’s Fusion and other mid-sized vehicles for the American market. In fact both cars were more or less developed independently with the Mondeo never being designed with the U.S. market in mind. While it would undoubtedly be expensive to modify the car for the U.S. market, those costs are undoubtedly lower than that of separately developing the Fusion on a different platform.

The car has been a top seller in Britain and Germany, and recently won family car of the year from the British TV show “Top Gear ”. In fact the car easily competes with cars like the VW Passat and Honda Accord, and is considered a benchmark in its class, something that Ford Midsized cars in America can only dream of. Simply put: Ford of Europe designs Ford’s best car and yet the company made no plans to sell this car in its most important market, during a time when SUV sales were fading the car desperately needs something to compete with the likes of Honda, Nissan and Toyota.

After all when Car and Driver claims: “the '08 Mondeo drives better than its forebears and we would judge it to be superior to any other front-wheel-drive sedan from a mainstream manufacturer. This is not to say it is a dynamic peer of the heralded BMW 3-series, but the Mondeo largely succeeds at capturing the feel, solidity, and refinement of more expensive luxury sedans ”. It doesn’t take a rocket scientist to figure that Ford of America should scrap its mid-sized car designs and let Ford of Europe do the heavy lifting, whilst the Americans focus on making sure the car meets American specifications with regards to safety, emissions, etc.

 A car like the Mondeo, especially with its sport and luxury spec versions is the ideal product for these times, as the higher spec versions could potentially replace some of the higher margin sales Ford loses with the drop in SUV sales. Remember consumers aren’t trading in SUVs because they’re too expensive they’re trading them because they’re too expensive to fuel; when it comes to Detroit’s recovery this is a distinction they would be wise to keep in mind.

I bring all of this up not to join the legions of American Auto Journalists and bloggers opining for Ford to bring the car to America (because, well, I already did that ), but to point out a nice little indicator of whether or not Ford is going to wake up when it comes to its next generation of mid-sized cars for the U.S. market (if not in general). The next generation of the Mondeo and the Fusion will be the same car, same platform, and the same “hat” on top, despite the objections of some parties within Ford America who feel that the styling of the Fusion better fits the U.S. market. IF the car is a compromise between a group that can design a great car (Ford Europe) and those that think we Yanks want a stodgy one (Detroit) then Ford is headed in the wrong direction, if instead we get a car that is just an improvement on the current Mondeo with minimal meddling from the Americans then Ford is headed in the right direction.

But don’t take my word for it, just take a look at the two cars and ask yourself: which car most looks like a car that would resonate with American drivers and cause them to abandon their Accords, Altimas, Camrys and Passats?

The Ford Fusion?

 

Image courtesy of Ford

Or the Ford Mondeo?

Image courtesy of Business Week

Do I really even need to ask?

Sources:

Automobilewoche: Ford wertet Mondeo-Einführung als Erfolg” – June 19, 2007

Business Week: “ NY Auto Show: Of Ford and Top Hats ” – David Kiley, March 20, 200.

Car and Driver: 2008 Ford Mondeo 2.5T – Car News” – Ray Hutton, July 2007 .

ACF Car Finance

Top Gear

Disclosure: at the time of publishing the author didn’t own a position in any of the companies mentioned in this article.

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