FORD has posted the biggest annual loss in the car maker’s 103-year history and warned that things could only get worse as the company grapples with plummeting sales and soaring restructuring costs.
If I could own my dream car – and with no concern for insurance costs or driveability in Canadian winters or gas mileage – it would be a customized Saleen Mustang. A Ford. I have a serious love for those muscle cars with their growling engines and their screaming fat tires. Yes. Please.
But I don’t live in that dream world, I don’t have that kind of money, it’s totally impractical and I do care about things like gas mileage and environmental impact. And I’m not the only one, either.
For the past few years, gas prices have risen – and, despite recent drops, will continue to rise in the future. This is a commodity that isn’t going to lessen in cost and, at long last, people are starting to realize it.
Hybrids and electric-driven cars are beginning to slowly but surely gain a foothold as the technology is proven, the cars are tested and the prices begin to fall into a reasonable area. Toyota and Honda are both leading the way in that department.
And then there’s Ford. Building bigger and less-efficient vehicles. Trucks. Vans. SUVs. Emphasizing power and strength and big fat tires and all the things that used to be incredibly popular when it came to choosing a vehicle. Stating that the majority of their profit comes from those behemoths.
Don’t get me wrong – those vehicles do have a legitimate place in our world. Farms need them, large families need them, people who work in certain fields require them. The average suburban person, however, doesn’t. And the average suburban person is beginning to realize that it’s not the most economical, environmentally-friendly way to get to the grocery store.
Last year, I sold my Ford Escape. It was a delicious small SUV, but it was derangedly expensive to own and insure and fill with gas. I worried that I’d miss being able to throw a small army into the back of my car – or two dogs, whatever – and I worried that I was sacrificing my own safety when we purchased two small Toyota Echoes in place of the big yellow beast.
In the end, my insurance dropped by 50%. Gas use dropped significantly, in addition to a change in driving patterns. And man, I felt pretty virtuous at the same time. We rent a van/truck when we need to move gigantic items, and the $50 cost (approx., each time) to do so is still a huge savings over the SUV’s annual costs. The dogs now wear seatbelts in the car instead of being crated (a definite adjustment for all involved but not a bad thing) and we alternate between Coffee’s car (a 4 door sedan) and mine (a 2 door) depending on our needs.
People, as a group, are beginning to care more about their own actions. Deciding if it makes sense to buy a big car or a small car in their own particular situation. Deciding what they need vs what they want vs what they can afford.
If Ford were paying attention to the market (the one they’re failing miserably in at the moment) they’d note that companies, too, are trying to cut costs. They may recognize Ford as a company that makes great heavy-duty vehicles – but perhaps they’d be even more interested if they could knock down their fuel costs when buying one. They don’t have to remove all the big trucks from the line, just remake them into something more effective.
And for consumers, wouldn’t it make sense for Ford to look at what people really want? They want style and they want comfort and they want to not overpay for a vehicle that’s going to cost them endlessly over the years of ownership. Hybrids, cars with better gas mileage, family-friendly cars that don’t belch exhaust all over the playground as they drive by.
The thing is, people aren’t stupid. We know the technologies exist and are being made refined with each passing day. We know that it’s possible to make cars less expensive and more efficient. We know that if a company like Ford were to make a major shift, other companies would follow suit.
So yeah. I’m doing a little happy dance watching Ford faulter – because I’m hoping it’ll smarten them up a bit a whole lot.



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