The Future of Ford’s Mid Sized Car Businessspan

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 Autel maxidas DS708. Last time I was there I saw a fairly sporty looking car that I assumed was either a VW or a European brand that isnt sold here; in the end the make didnt 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 ( F ).

The car is the new Ford Mondeo, a car designed by Ford Europe and based on a platform designed by Volvo, a platform it doesnt share with Fords 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 Fords 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 ( HMC ), Nissan ( OTCPK:NSANY ) and Toyota ( TM ).

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 doesnt 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 X431 PAD, whilst the Americans focus on making sure the car meets American specifications with regards to safety, emissions, etc.

A car like the Fusion, especially with its sport and luxury spec versions, is the ideal product for these times Launch X431 GDS tool, as the higher spec versions could potentially replace some of the higher margin sales Ford loses with the drop in SUV sales. Remember, consumers arent trading in SUVs because theyre too expensive; theyre trading them because theyre too expensive to fuel. When it comes to Detroits 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 dont 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?

Automobilewoche: Ford wertet Mondeo-Einfhrung 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 didnt own a position in any of the companies mentioned in this article.

Source: The Future of Ford’s Mid Sized Car Business Markham Lee ( 72 ) SA.Pages.Article.Follow.init('markham-lee'); if (SA.Data.Cookies.get('author_slug')=='markham-lee') $('article_top_info').down('.author_desc').update(" Click here to add your Contributor Mini Bio in this spot "); $('follow_btn2').observe('click', function(event) if(this.className == 'link follow') Mone.event("auth_follow", "article_bottom", "follow_author"); else if (this.className == 'link unfollow') Mone.event("auth_follow", "article_bottom", "stop_follow_author"); ); Seeking Alpha PRO helps fund managers: Research new investment ideas Reduce risk Find out if PRO is right for you: Full Name Work Email Phone Fund Name Contact Me We only use your contact details to reply to your request for more information. We do not sell the personal contact data you submit to anyone else.

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