RCCN WeChat QrCode
Mobile WebSiteAccording to the "Fortune" website reported that Ford Motor Company recently announced plans to cut part of the job, and ready to car product output to the SUV and cross-border car products in the direction of change. The company is working on the production of trucks, pickups, and other models that are stable in the market. But Ford has stressed that it has made great success in launching Taurus, Fusion and other sedan models - and is now undertaking a notable strategic shift. So why should Ford make a major strategic transformation?
Consumer preferences and changes in demand
First of all, Ford is facing the problems of consumer preferences and changes in demand. "Ford family" series models need to add more roles to meet the needs of different consumers. And cross-border models and SUV models are more close to the user's different needs, because these models have a relatively spacious interior space and decoration, as well as flexible seat configuration and more storage space.
Ford realized that the current US car market is full of cheap, imported modern, Kia, Nissan and other manufacturers of products. While car manufacturers from Europe are firmly in control of the high-end car market. In addition to a small number of models such as Lincoln MKS, Ford in the field of car investment and development space has been very limited. As Ford has been involved in the price of the economy relative to the car space competition, so it needs to produce basic configuration of the car and avoid the relatively complex electronic system. However, the modern driving experience is more dependent on the electronic system system.
Ford's choice is to enhance the electronic system functions of its own SUV models and cross-border vehicles - and consumer demand for this system is growing. These new vehicles will make the driving experience more interesting, especially through advanced driving technology to get more security experience. These enhancements span relatively mature categories, such as anti-lock braking systems and upgraded in-vehicle computers and navigation systems, which are designed to enhance the functionality of the driver assistance system and to provide all drivers with traffic from lane Automatic brakes of the various driving experience. The new infotainment system option allows the vehicle to become an Internet hub.
As the driver's demand for this trend continues to increase, the average car prices began to rise. According to statistics, the average price of new cars in the US auto market has risen from $ 31,000 in 2013 to $ 35,000 in 2017. The rise in selling prices compensates for the decline in car sales, which show that consumers are willing to pay more money to enhance their vehicle safety and want a better driving experience.
Fuel cost changes
The change in vehicle fuel costs is another factor that affects the way Ford is transitioning to cross-border and SUV models. With the highest peak and the lowest valleys now, now the price of gasoline has reached a relatively stable intermediate level. Researchers believe that gasoline prices are no longer the primary consideration for vehicle selection, because the era of high oil prices has become the past. Consumers are indifferent to gasoline prices or rarely worry about the reasons for gasoline prices, partly from the significant increase in automotive electronic properties to improve the fuel economy of modern automotive products. As consumers buy cars more willing to consider the fuel than the car models more other models, therefore, Ford naturally decided to start producing more SUV and cross-border models.
Now, Ford began to cross-border models and SUV models change, mainly to meet the consumer preferences for multi-purpose vehicles. Because these models are more secure, fuel economy is higher, but also to provide drivers with more driving pleasure and experience. Like other carmakers, Ford has made more profit margins in the vehicle space that is popular with the user. Now, the changes in consumer preferences and the occasional combination of Ford's transition to cross-border and SUV models will inevitably drive the company to make more profits in the future.
Coping with declining share prices
It is understood that since Mark Fields (Mark Fields) as Ford Motor Company CEO, the company's share price has fallen 40%. While the Ford Board of Directors wants Mark Fields to come up with a clear and clear strategy to change the status quo.
According to a number of informed sources, in the face of the tension between the senior management of the company, the board of directors dissatisfaction with the decline in stock prices, as well as the company's strategy to promote hope. The carmaker decided to make a major reorganization of his senior management team.
The reform may include re-shuffling senior executives during Alan Mulally's tenure. Alan Mulally had previously served as CEO of Ford for eight years and ended his term of office in 2014. The current Ford management team has undergone a major restructuring to meet the company's ability to better respond to the transformation of the global automotive industry, including the transition to so-called mobile travel services.
For a change in the management of the company, a spokesman for the Ford Motor Company declined to comment. However, the company also said in a statement: "will continue to focus on we can create value and achieve profit growth."
