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I can't help but wonder...
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Posted by Justin VanAbrahams [Email] (#32) [Profile/Gallery] (more from Justin VanAbrahams) on Tue, 1 May 2018 07:43:01 Share Post by Email
In Reply to: Ford Dropping Most Sedans, EGD [Profile/Gallery] , Thu, 26 Apr 2018 11:29:49
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I've read varying takes on this move, and I feel like there are some things I don't really understand about the automotive industry. On first blush, I feel like this is a big mistake. The industry right now is fueled by the appeal of "hot new CUVs" and "crossover fever" while consumers are inspired by continuing low fuel prices. Eventually, CUVs won't be new anymore and people will move on to something else... although I don't know what that is. Gas prices are set to go up and people may be more reluctant to give up a few MPGs. It really seems to me Ford is repeating GM's mistake here by banking on bigger vehicles, but I dunno.

At the same time, these cuts are only in North America, which means they'll continue to have an investment in cars elsewhere in the world. Selling cars in 2020 is a *bit* more global in nature than it was in 2000, but I'm not sure how much. If Ford can stop selling "average sedans" here without cutting development entirely, and could return the market swiftly if necessary then maybe it's not such a bad deal.

Still, I can't help but doubt the CEO. He seems to be a really odd choice for the job and more like Trotman or Nasser than Mulally. And that's not good. Mulally had an amazing foresight... the other two clearly didn't get it. My personal concern is that Hackett is being bold for bold's sake, and/or sacrificing long-term durability for short-term numbers. I don't see what he sees, but IMHO Ford is knocking it out of the park right now with an excellent lineup across the board, and that's all Mulally's doing. I'd be really hesitant to mess with the vision of a guy who so deftly side-stepped total disaster.

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