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Wednesday, March 10, 2010

2012: The Fordaizening of hybrid cars

In 2012, Ford's hybrid cars will undergo a major dose of kaizen, and if the plans live up to the projection, Fordaizen might have to become Ford's new mantra.Is it real this time?

Several years ago I had such hopes for Ford, particularly its couple hundred thousand hybrid cars per year by 2010 plans, including unique and new vehicles, such as the Reflex hybrid pictured here.

Instead, Ford sold 30,000 hybrids last year. Toyota sold 500,000.

Fortunately, that Ford is gone. Yesterday's Ford died when it went into bankruptcy, along with the rest of the Big 3.

Finish: 2012 - The Fordaizening of hybrid cars

Labels: Ford, Hybrid Vehicles

posted by Dahcredyns at 11:13 AM

10 Comments:

Blogger Dahcredyns said...

Full Story

Several years ago I had such hopes for Ford, particularly its couple hundred thousand hybrid cars per year by 2010 plans, including unique and new vehicles, such as the Reflex hybrid pictured here.

Instead, Ford sold 30,000 hybrids last year. Toyota sold 500,000.

Fortunately, that Ford is gone. Yesterday's Ford died when it went into bankruptcy, along with the rest of the Big 3.

Ohhh, that's right. Ford didn't go bankrupt. Instead, a short time before the proverbially crap hit the fan, man, ex-CEO Bill Ford hired Boeing's Alan Mulally to replace him. Almost instantly, Mulally made huge changes, particularly financial moves, saving Ford from bankruptcy and ushering in a new era of efficiency derived from Mulally's kaizen-styled management.

Ironically, however, that kaizen hasn't led to many new hybrids at Ford, unlike one-time kaizen master, Toyota; and that hybrid difference won't change until 2012, when Ford opens a new battery lab and begins the launch of several new hybrid and electric vehicles.

But what does that really mean? Doubling production to 60,000 hybrids per year?

Nope. At the Geneva Motor Show, Ford fired a shot off Toyota's industry-ramming hybrid bow. Within 8 years, Ford will be 25 percent hybrid, putting Ford on almost the same hybrid production trajectory as Toyota.

OK. Ford actually said 10 - 25 percent hybrid by 2018, so 25 percent might just be an overly positive, forward statement. Besides, such an increase in hybrid production in such a short amount of time seems almost incomprehensible, especially from Ford, right?

But we're talking about new Ford here, and if Ford is running the numbers on what it would take - supplies, manufacturing capabilities, etc. - to achieve a 25 percent hybrid share by 2018, then they know - at least roughly - the different kinds of numbers needed to achieve a 25 percent hybrid share in the real world. It's tangible. Moreover, when it has come to numbers thus far, Alan Mulally is no joke.

Still, 25 percent hybrid by 2018?

I'm not sure Alan Mulally is that much of a miracle worker, but if Ford achieves that goal, Ford's new mantra should be Fordaizen.

11:28 AM  
Blogger Smurf said...

Nice article.

I've been following Ford's hybrid progess since the late 90's.

The first Escape hybris was supposed to built in 2001, then 2002, then 2003. Finally in 2004, they put a few on the market.

Now it's 2010 and they still only sold 30,000 hybrids total in one year.

Considering how they have under-achieved so far compared to their plans, I see Ford being 5% hybrid by 2018...at best.

3:37 PM  
Blogger Dahcredyns said...

thanks.

i really believe they are a lock for 10 percent, and i'm hoping to be surprised, but that's just speculation.

my guess - i need to start listening to some conference calls - is that Ford has decided to make a certain sized investment into lithium technology over the next 8 years and they already know 10 percent is the worst case production scenario based on the investments already made.

3:50 PM  
Blogger johnm said...

I'm not aware that Ford ever went bankrupt.

I suspect the low number of Ford hybrid sales is due low or negative margins. When I looked for Fusions in my neighborhood, there were only high-end models available. That doubles the hybrid premium over the mid-level model I'd prefer.

8:48 AM  
Blogger Dahcredyns said...

they didn't john. that was just the set up to the story. at the bottom of the post is a link to the rest of the story, or i copied it and made it the first comment.

9:32 AM  
Blogger Dahcredyns said...

anyway, john.

that's a big hybrid problem today. however, to achieve the kinds of numbers that ford is suggesting, that practice will have to change.

i'm assuming that this change will be based on the new generation of batteries that will be going into all of Ford's hybrids.

9:35 AM  
Anonymous Used Cars Los Angeles said...

Domestic cars are going to make a comeback in a major way. With government interest involved now, you watch how the media will put domestic right back at the top. I just dropped a gem for everyone here :)

3:56 PM  
Anonymous New Car India said...

I don't think Ford is fully gone. They are just regrouping themselves before joining the race again. I am a sure they will bounce back again.

11:51 PM  
Blogger Indigo said...

Indigo Incarnates

It does seem like Ford is actually on the mend. They've got new cars, new ideas, and they didn't steal from the taxpayer. Sure, they don't have a lot of hybrids, but the Fiesta is supposed to get 40 MPG, which is higher that most of Toyota's hybrids.

9:18 AM  
Blogger Dahcredyns said...

Ford's lack of hybrids seems hinged to a lack of batteries. That should change in 2012.

Still, the Fiesta will be a great car, but 40 mpg on the highway isn't that exceptional, at least in my opinion. Most transportation studies still indicate that congestion, ever greater congestion, is the future. In such conditions, the Fiesta will probably drop below 30 mpg.

9:48 AM  

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