Following Fiat Chrysler, now Ford will stop selling sedan cars in North America and only be in the business of SUVs and pickups! The “reasoning” they give is that it is a sound business decision as the sedan segment has been slow in sales for several years. They go on to tell us that they will only manufacture and sell what is very profitable here and now! The rest they will “cut off.”
That is, I believe a narrow and non strategic vision. It continues an ongoing over 40 year collapse and defeat of the U.S. auto manufacturer’s to global competition! The latest decision is yet once again a a choice to avoid the competition, retreat and run away!
What this move means is that the U.S. automakers have publicly admitted that they DO NOT HAVE the INNOVATIVE capacity, courageous leadership nor a long term strategic vision. Instead they have given up and in fact surrendered the traditional automobile market to Japanese and Korean car brands who have been innovative and appealing to Americans. In reality, the U.S. sedan market has failed to compete with the Asian automakers – is that the legacy we want to be left with? Is that the American Dream? Is that the home of the brave and the innovators? The sad part is that the U.S. automakers admit that they are not good enough to compete in a global market in the USA! What happens next when they begin to fall behind the Asian manufacturers in the SUV and Pickup market? Where do they retreat to at that point? making cookies?
The U.S. automakers have failed to have American consumers believe in the sedan product that they manufacture!
The U.S. car manufacturers are once again driven by a short term view. It lacks strategic vision, it is driven by quarterly short term reports. It is further evidence as to why manufacturing in the U,S. has been compromised for BIG bonuses for the leaders of organizations who care about their pocket. It is not serving the long term interests of the manufacturers nor the American economy. Certainly not American employees who once again were let down by failing leadership.
The U.S. manufacturers failed to ask the more important question which is why consumers who buy small cars and sedans favor imports over the domestics? The response from Detroit is to avoid that question and run! I have never knew of a battle you win by running away!
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