Why the Big 3 Should and Will Fail

The Ford Motor Company, whom I mentioned a couple of days ago in a post titled For Ford Motor Company No Evidently Means Yes, their “bright” idea to sell more cares is self parking technology.  An existing technology already available in some vehicles, self parking technology is a feature most individuals simply do not need, and will not cause an increase in sales for Ford, or any other auto manufacturer.  How pathetic.

Ford announces new self-parking technology

Posted by .(JavaScript must be enabled to view this email address) on 12/30 at 12:18 PM

  1. John,
    I have great respect for your opinions and this blog. But I must admit this one’s got me thrown just a bit, You’re not really suggesting that this technology was offered as a counter to the current situation, are you? Trust me when I tell you this stuff’s been in the works for at least 5 years.

    As for it not causing sales increases, I’m not so sure on that point, either. In the market segments where it’s been offered so far… (As you say, it’s been offered on other vehicles for a couple years, now) ....it’s caused a bit of a stir. Admittedly, that’s at the upper segments. Still, Ford would be the first to offer such in domestic segements.  I suppose they’d be offering it in Lincolns first, but we’ll see.

    Posted by Bithead  on  12/31  at  11:04 AM

  2. Eric,...You’re not really suggesting that this technology was offered as a counter to the current situation, are you?

    The way the information regarding Ford’s offering of self parking technology was presented as headline worthy news will lead many readers of the headline to consider Ford’s announcement as an auto manufacturing/sales boost which could turn the tide of failure for the Big 3, Ford in particular.

    Trust me when I tell you this stuff’s been in the works for at least 5 years.

    I know that.  Lexus, or some other high end car manufacturer, previously brought the technology to market.

    As for it not causing sales increases, I’m not so sure on that point, either. In the market segments where it’s been offered so far… (As you say, it’s been offered on other vehicles for a couple years, now) ....it’s caused a bit of a stir.

    Many gadgets initially cause a stir; recall the Segway; and a blip upward in sales, but then become blase.  I do not think that self parking technology will create sustained increased demand for Ford manufactured vehicles.

    Posted by John Venlet  on  12/31  at  11:51 AM

  3. The way the information regarding Ford’s offering of self parking technology was presented as headline worthy news will lead many readers of the headline to consider Ford’s announcement as an auto manufacturing/sales boost which could turn the tide of failure for the Big 3, Ford in particular.

    OK, but if that’s your angle it strikes me as more of a problem with the news media trying to hide something it doesn’t understand, rather than a problem with Ford itself.  (Gee, the news media hiding something it doesn’t understand .  Where have we heard that before?)

    I do not think that self parking technology will create sustained increased demand for Ford manufactured vehicles.

    Well, certainly not enough to make that kind of difference.  The real answer, cannot currently be used by the auto manufacturers here in this country, because of government regulations.  I will come into your reading a Wall Street Journal article…
    http://online.wsj.com/article/SB123069003507444659.html

    ... and I will quote a little from it. 

      Like all regulatory schemes, Congress’s hallowed Corporate Average Fuel Economy rules froze in place a conception of the auto industry as it appeared to the simple minds of Congress in the early 1970s, when three manufacturers dominated the U.S. market, making full lines of vehicles. Today, more than 25 companies sell vehicles here, and the corollary of such diversity, normally, is specialization.

      The Big Three, left to their own devices, would surely specialize in those vehicles on which they make money — i.e., those with hefty price tags and markups relative to their man-hour content. Even at the peak of gas prices, half the vehicles sold in the U.S. were light trucks. In November, amid a collapsed home construction industry and with $4 gasoline fresh in mind, what were the two top sellers? Pickups by Ford and Chevy — and the Dodge Ram was No. 7.

      Shouldn’t this be telling us something about how to make the Big Three “viable”?

    The point I’m making here, is that the kind of nonsense that your post points up is exactly what happens with governmental involvement.  In this case the auto manufacturers are forced into dealing with minutia when they should be dealing with building profitable cars, cars and trucks that people will actually buy.

    Posted by Bithead  on  12/31  at  05:27 PM

  4. OK, but if that’s your angle it strikes me as more of a problem with the news media trying to hide something it doesn’t understand, rather than a problem with Ford itself.

    You will get no argument that the news media understands very little, regardless of how many words they string together and present to the masses as news.

    As for Ford Motor Company, though, they do have a problem.  Ford presented the information, to the news media, regarding the self parking technology being offered in upcoming models as news and any news being offered up at this point in time by any Big 3 automaker is an attempt on their part to increase sales or to present a more rosy and robust appearance to the public as a viable business concern.

    The point I’m making here, is that the kind of nonsense that your post points up is exactly what happens with governmental involvement.  In this case the auto manufacturers are forced into dealing with minutia when they should be dealing with building profitable cars, cars and trucks that people will actually buy.

    No argument with the above, Eric.  There is no doubt, what-so-ever, that governmental interference has and is totally mucking up what should be a free market.  But instead, the free market has become a forced sale wherein gadgetry must be employed in the product to produce a sale.

    Posted by John Venlet  on  12/31  at  07:04 PM

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