New-car introductions are becoming increasingly rare as the auto industry suffers through its worst downturn in 25 years.
Ford Motor Co is bucking the trend this month, however, gambling that its new Fusion hybrid sedan can attract some of the dwindling number of US consumers still interested in buying a new car.
Ford also hopes its Fusion hybrid will help separate the automaker in the public’s mind from its crosstown rivals General Motors (GM) and Chrysler, which both need more government loans to avoid bankruptcy. Ford has so far refrained from seeking federal aid.
“We are not about waiting for tomorrow and what it’s going to bring,” said James Farley, Ford’s global marketing chief. “It’s about what we’re doing today to bring out car after car after car.”
The industry has cut back considerably on new-model introductions — hardly a surprise considering the 18 percent drop in US vehicle sales last year.
Last year, automakers brought out 17 new models, not including redesigns of existing vehicles, Ward’s Automotive Reports said.
That was about half the annual number of new models the industry turned out just a few years before. With sales plunging to levels comparable to the early 1980s, automakers are delaying or canceling product programs to conserve cash.
The number of new models that will debut this year will probably be fewer than 10, according to product plans revealed by the automakers.
“The environment is obviously not good as far as the economy and consumer confidence goes,” said Joseph Phillippi, principal in the firm Auto Trends Consulting.
Ford, however, is bringing out three new vehicles this year — the Fusion, with either a hybrid or conventional engine; the new Taurus sedan; and the Transit Connect van.
It will introduce the Fusion Hybrid with an advertising campaign beginning tonight on American Idol.
With Ford shifting its product lineup to emphasize more fuel-efficient small cars, the Fusion Hybrid is seen within the company as an important vehicle for changing perceptions in the marketplace.
“We’re known to most people as a trucks and Mustang company,” said Matt Van Dyke, Ford’s US director of marketing communications. “How do we begin to tell the story that we’re in the car business in earnest?”
The bigger challenge may be drawing buyers into showrooms.
“The question is what people are going to respond to,” Farley said. “And we think it is fuel economy.”
Both the hybrid and conventionally powered Fusion models are ranked best in fuel economy in their respective segments, federal statistics showed.
Ads for the hybrid promote not only that it delivers 41 miles a gallon (17.4km per liter), but that it can travel 700 miles (1,126km) on a single tank of gas.
While they do not talk about it much publicly, Ford officials also think that every car introduction this year will further separate their company from the troubles enveloping GM and Chrysler.
Ford is tracking how its decision not to take government money has affected consumers’ perceptions of the company, but has declined to share that data.
The magazine Consumer Reports recently gave Ford’s reputation a lift when it recommended more of its models to prospective buyers than vehicles from GM or Chrysler.
GM and Chrysler have received US$17.4 billion combined in bailout loans and are asking Washington for an additional US$21.6 billion.
Analysts think the relentless coverage of their loan requests is taking a toll on GM and Chrysler — and consequently helping Ford.
“GM and Chrysler are in the media every day, and every story invariably cites the ‘B’ words — bankruptcy and bailout,” Phillippi said. “It has to be helping Ford.”
NO-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
STATE OF THE NATION: The legislature should invite the president to deliver an address every year, the TPP said, adding that Lai should also have to answer legislators’ questions The Chinese Nationalist Party (KMT) yesterday proposed inviting president-elect William Lai (賴清德) to make a historic first state of the nation address at the legislature following his inauguration on May 20. Lai is expected to face many domestic and international challenges, and should clarify his intended policies with the public’s representatives, KMT caucus secretary-general Hung Meng-kai (洪孟楷) said when making the proposal at a meeting of the legislature’s Procedure Committee. The committee voted to add the item to the agenda for Friday, along with another similar proposal put forward by the Taiwan People’s Party (TPP). The invitation is in line with Article 15-2