Ho sakta hai ek din Jim Farley ko apne latest statements ka regret ho. Ford ke CEO ne bina zyada soche samjhe, thoda casually hi ye baatein keh di. few days back unhone Argentine media ko interview diya, jahan unhone ek aisi baat explain ki jo wo usually nahi karte. Unhone explain kiya ford apna business model kaafi change kar raha hai, despite the volume brand ab wo zyada premium or 'exquiste' brand banna chahta hai, jiske products sirf car nahi rather emotions bhi feel karayein.
Farley pehle hi confirm kar chuke hai ki Blue Oval brand (Ford) ab mass volume manufacturer nahi rahega, rather thoda more exclusive or premium banega. Means Mustang or Bronco jaise special models pe zyada focus hoga. Maybe ye business model US mein work kar jaaye, jahan aisi cars zyada popular hai. But Europe mein ye utna suit nahi karta, because wahan Ford ko premium ya not as a high end brand rather ek volume brand mein dekha jaata hai.
Assess your position in relation to Toyota and Hyundai Ford's core issue
Basically volume hi responsible hai aaj Ford Europe mein jis situation mein trap hua hai. Euroean market mein unka lineup almost dismantle ho chuka hai, or ye baat Farley ke recent statements se bhi clear hoti hai. Ford ke boss ne kuch interesting 'pearls' drop ki hai, jaise ye admit karna ki Fiesta or Focus jaise models ke saath jab unhone European, Japanese or South Korean brands se compete kiya, then their eyes were opened. Itna zyada pressure tha ki unhe ultimately zyada profitable models ki taraf shift karna pada.
Farley convinced the ki utility vehicle or compact car ka future nahi tha, because unko develop karne ka cost itna zyada tha ki profit margin almost bachta hi nahi tha.
Wo kehta hai, "Ford ke liye full line manufacturer banna ek spiritual moment tha, but mujhe kaafi kuch learn karne ko mila, maybe ye ek mistake thi. Try karna mistake nahi tha, par hum Toyota, Hyundai ya Kia ke saath cost department mein compete nahi kar paaye. Or last mein humein Broncos or pickup trucks par shift karna hi pada.
In other words, Farley ne indirectly admit kar liya hai ki Toyota or Korean brands se compete karna ek mistake thi. Aur ye baat zyada surprising lagti hai jab pata ho ki Ford ke paas itni capability hi nahi thi ki wo un cars ko apne rivals jaise low cost ya same margins pe production kar sake.
To be very honest ye assume karna thoda difficult hai (or buyers ko convince karna bhi) ki Ford Fiesta ki 7 generations, jo mid 2023 tak aati rahi or Focus ki 4 generations (jo ab production mein bhi nahi hai) par company continuously loss mein chal rahi thi. Because agar kisi manufacturer ko clearly pata ho ki costs cover hi nahi ho rahe, then wo repeatedly new models ya updates launch karta hi nahi. Aur Ford ne ye sab years tak continue rakha.
Farley puts Fiesta and Focus in the target of poor management
Ek senior official ne bola ki Ford ka issue ye nahi tha ki wo utilitarian or compact segments mein enter hue, problem ye thi ki wo wahan tab bhi stick rahe jab numbers sense nahi bana rahe the. Sedans or compact cars mein high volume chahiye hota hai, margins minimal hote hai or hamesha price war chalti rehti hai. Iske comparison mein har Mustang, Bronco ya pickup jo sell hota tha (or aaj bhi sell hota hai), usme per unit kaafi zyada profit aata hai.
Jim Farley ki jo new policy hai, uske Europe mein consequences dikhne wale hai. 2026 ke end se Kuga ka discontinue ho jana Ford ke European lineup mein ek big gap reh jaayega. Aur jo new model Focus ko replace karne aa rahe hai, wo akela entire brand ko handle nahi kar paayenga. from above, new strategy mein uske liye koi clear space bhi nahi lagti.
Jab tak usse ek more premium role na diya jaaye, strong emotional appeal ke saath, powerful image or high margins ke focus ke saath. Let's see ki few units sell karke ye specialization zyada profits laati hai ya phir ek or disaster ban jaati hai, jo company ko aur zyada trouble mein daal de.