Tuesday, September 02, 2008

The Auto Business

First, let me start with full disclosure. Ford Motor Company put food in my mouth, a roof over my head and 16 years of education in my mind. My father was a chief engineer in Instrumentation and Design Group at Ford Motor Company on Oakwood Blvd. in Dearborn, Michigan for 28 years. After retirement for heart disease, he continued to buy Ford products, talk about the greatness of this company and celebrate its successes.

As a result, I am a gear head. Time has marched on, but it also seems to have frozen in places like Michigan. I, like the students graduating from Michigan’s great universities today, had to leave the state to get a job. I became a gear head in the technology business of California. Computers, servers, software and chips are my business, but in my heart, I’ve never travelled far from the auto business.

So began the quest of merging the fine products of Detroit and LA with the world outside the pleasant peninsula. Step in the Ford Ride & Drive in Southern California earlier this week.

The mornings pleasantries began with a review of the downturn in the automotive business – there is the potential for as many as 5 million fewer cars could be sold in the U.S this year. But optimism abounds “based on recent data, the consumer is unlikely to whip shaw us like that” said Hal Dewsnap, Ford
Regional Sales Manager, California.

I appreciate the optimism, but the auto business is facing a difficult time. Not only are energy costs skyrocketing, and vehicle requirements, globalization is placing pressure on this business that is unrivalled by any other previous shift. And consumers are driving, NOT the auto executives.

Ford has an outstanding history of producing cars that consumers want and need – they have led the way in fuel efficient vehicles throughout Europe and continue to today. Caution, Ford, consumers are enabled. Consumers know your products from other markets and they want the choice. The challenge is how to build the next generation of auto company – lean enough to lead with great products, understand the global dynamics and consumers next trend.

Something to think about….

Up Next…cool Ford green innovation!