Monday, November 13, 2006

Ford to focus on fuel efficiency

Ford is set to focus on fuel efficiency.

Yeah, we've heard this before. Ford is going to lead the environmental revolution in the automotive world! One month Ford is going to produce 250,000 hybrids by 2010, the next month they've already given up.

Still, Ford's new CEO, Alan Mulally is worth believing - for now.

In his job at Boeing, Mulally was a follower of the Toyota Production System. Moreover, Mulally believes that higher fuel prices and global oil demand are the most important dynamics facing the automotive field heading into the future. Consequently, Mulally told the Automotive News that "So clearly, designing and building cars that people really like and that are going to be useful for their lives but also continue to improve (fuel) efficiency is what I think is going to be the most important thing."

While it seems obvious that fuel efficiency is becoming significantly more important, the ability to compete and profit as we enter into this new automotive world is easier said, than done. Hopefully, Mulally can find the right path.

Speaking of the right path.

It would be nice if the Big 3 were a little more focused on how to be more fuel efficient when they meet with the President on Tuesday, rather than focusing on health care and trade issues. It's sort of ironic that Ford's CEO is showing up in a Ford Escape hybrid and GM's CEO in a Saturn Vue hybrid, yet both automakers are getting their asses kicked in the hybrid vehicle segment.

It wasn't but just a couple of years ago when GM execs regularly ridiculed hybrids. Perhaps, if the Big 3 had been more focused on automaking the last few decades, rather than on financing and lobbying, they wouldn't be facing such hard times. Neither health care nor trade issues caused the hybrid lag in Detroit - that was pure corporate incompetence.

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