Report: Mulally wants to bring Ford Ka to U.S.; other execs opposed
CEO Alan Mulally is keen to bring the Ford Ka sub-compact hatchback to the U.S. market, but so far he doesn?t have the support of other top executives. Mulally is no stranger to conversional decisions ? he boldly revived the Taurus nameplate after taking the helm at Ford ? but so far he?s watching and waiting when it comes to the Ka.
Global product chief Derrick Kuzak and chief marketing officer James Farley are said to be opposed to importing the tiny vehicle to America. The two executives ?get suspiciously quiet, and you can almost see their eyes roll? when the subject comes up, notes BusinessWeek?s David Kiley. ?Kuzak even smirks over it.?
But that doesn?t mean Mulally won?t eventually go with his gut feeling on the Ka. He?ll just have to come up with the business case, which, right now, isn?t very appealing. Federalizing the vehicle would be expensive, and it could be hard to reach U.S. safety and emissions standards without significant investment. Pricing the car for a profit might also put it outside the reach of consumers who would actually want it.
Ford introduced a redesigned Ka in August. The new model was co-developed with Fiat and rides on the same architecture as the Fiat 500. It achieves 55 mpg and takes 13 seconds to hit 60 mph. Power comes from a 1.2-liter engine producing 67 horsepower. A 100 hp 1.4-liter motor found in the Fiat Cinquecento is optional. If sold in America, the Ka would be the second-smallest vehicle on the market.
I just want to say this right now: Mulally has overtaken Lutz as the best American exec, IMO. I rank him right behind Ghosn.
That being said, I'm not sure how smart it is to import it from Germany, Belgium, or wherever, but he should be able to get a line started up in Mexico.
He should fire Kuzak and Farley's asses, set up manf in Mexico, and bring it for <$12,000.
The car makes sense, and if Ford can open up entry-level buyers to a good, reliable, efficient car to lure in people who might otherwise get a Hyundai or Kia, then they have won. Sure, gas is $1.70 a gallon right now, but given the instability of the world markets right now, we might be back up to $4-5 by summer.
Even if we're not, a good, reliable car with a warranty is hard to pass up sometimes, and if someone could convince me that it's sporty enough or a Fiat 500 in disguise, it might be my first new car after college.
Of course the hurdle remains that Americans just don't buy that many subcompacts, and with gas still well under $2/gallon, that probably won't change much. Further, domestic manufacturers have recently had issues with domesticating their foreign product.
But the Astra was a horribly disappointing attempt at doing it right. Let's be honest.
Quote from: the Teuton on January 13, 2009, 12:51:33 PM
But the Astra was a horribly disappointing attempt at doing it right. Let's be honest.
Antwerp, Belgium is not a cheap place to manf a car. Even though the Astra is a good car, not a lot of people are willing to spend >$18,000 for a subcompact with 140 hp.
Can the Ka sell for enough US dollars to succeed here?
Problems:
Engineering costs to meet US impact and emissions specs. This may not require much, but then again I've no idea how far short of US requirements it may be--if it's short of them at all.
Maintenance training for all dealership mechanics on a vehicle that probably shares no parts whatsoever with any domestic Fords/Lincs/Mercs.
A parts supply system, which may or may not not be costly. I have no idea how many Ka subcomponents are supplied by non-Ford subcontractors. They're likely supplied by European subcontractors, and they'll likely fluctuate in cost vs. the US dollar.
How much less can they be produced than a Focus--whether produced here or produced outside the US? If the Ka costs anywhere close to a Focus to produce, it could be a hard sell against that well-turned-out subcompact...
Nevertheless, the Ka would likely be the most fuel-thrifty Ford sold in North America, and that's worth some considerable marketshare right now.
Has Mulally got the figures to show the Ka would recoup the costs associated with a new vehicle intro very quickly? If he does, it might come to pass. If he doesn't, the bucks might be better spent elsewhere...
The thing is there are a LOT of people looking for a good little car to just drive to work.
Honda made it's name and brand off RELIABILITY on tiny little econoboxes. It was only after a long while of selling tiny civics and small accords that they started moving more upscale. The Civic now is bigger than the Accord of the 80s-90s, isn't it??
Ford is pursuing features in some of it's cars, that's one way to get a good customer base. Problem is a lot of these features will break/malfunction.
If they can bring a barebones Ka to market CHEAPLY, they will be able to compete with the entire cheapie car segment. Again, this car has to be sold at a very low price. just like it is in Europe. No one there pretends it's anything but basic transportation.
There seems to be a series of minicars coming to the US:
The Chevrolet Spark
Ford Ka
Toyota iQ
and others.
Quote from: the Teuton on January 13, 2009, 12:51:33 PM
But the Astra was a horribly disappointing attempt at doing it right. Let's be honest.
To be fair, Astra sales are picking up.
Quote from: GoCougs on January 13, 2009, 12:49:30 PM
Of course the hurdle remains that Americans just don't buy that many subcompacts, and with gas still well under $2/gallon, that probably won't change much. Further, domestic manufacturers have recently had issues with domesticating their foreign product.
If you're wanting everything to be a runaway success then yeah they don't sell well. However if you produce just enough, things will be fine.
A V8 won't fit under the hood of the Ka. :huh:
Quote from: cawimmer430 on January 13, 2009, 03:04:47 PM
A V8 won't fit under the hood of the Ka. :huh:
What does that even mean?
Quote from: 2o6 on January 13, 2009, 03:05:48 PM
What does that even mean?
A Ka with no V8 = sales failure in the US. :devil: :devil: :devil:
Dude, I am playing around. :rastaman:
Someone who lives in Europe:
Is the Astra a premium compact in your land?
As much as I would like to see this car it's probably a bad idea. A car as small as the ForTwo or Ka just doesn't make sense in the USA, novelty factor aside.
Quote from: TBR on January 13, 2009, 06:28:26 PM
As much as I would like to see this car it's probably a bad idea. A car as small as the ForTwo or Ka just doesn't make sense in the USA, novelty factor aside.
Smarts are relatively popular in this metropolitan area, even in the cold weather.
I think you can make the Ka relevant, but it isn't going to sell too well just by sticking them on lots. Ford will have to invent a youth image for the car...or find people like my dad who think that if you can get 60 mpg, power windows aren't necessary.
I'm sure no-frill buyers still exist in the US somewhere.
Quote from: the Teuton on January 13, 2009, 06:31:32 PM
or find people like my dad who think that if you can get 60 mpg, power windows aren't necessary.
I'm sure no-frill buyers still exist in the US somewhere.
That's called a motorcycle. :ohyeah:
Quote from: the Teuton on January 13, 2009, 06:31:32 PM
Smarts are relatively popular in this metropolitan area, even in the cold weather.
I think you can make the Ka relevant, but it isn't going to sell too well just by sticking them on lots. Ford will have to invent a youth image for the car...or find people like my dad who think that if you can get 60 mpg, power windows aren't necessary.
I'm sure no-frill buyers still exist in the US somewhere.
If I were in the market for a commute to work car and the Ka was available I'd buy on in a New York Minute (whatever that is).
If the car is small enough that the driver can easily lean over and roll down the passender sindow are power windows really necessary?
Quote from: hotrodalex on January 13, 2009, 06:34:55 PM
That's called a motorcycle. :ohyeah:
What if it rains, or gets cold?
Besides, the Ka isn't THAT small. It's not too much smaller than a Yaris 3-door. The Yaris is at around 150 in of length, and the Ka is around 143 in. Add in a few inches due to US bumper regulations, and It'll jump to 145-146 in.
Quote from: the Teuton on January 13, 2009, 06:25:36 PM
Someone who lives in Europe:
Is the Astra a premium compact in your land?
That depends, the Astra like the Golf is a classless car. The base version is quite cheap but a loaded GTC is expensive.
Quote from: Galaxy on January 14, 2009, 08:41:32 AM
That depends, the Astra like the Golf is a classless car. The base version is quite cheap but a loaded GTC is expensive.
That makes sense.
Maybe we just haven't reasoned that a hatch can be premium yet, especially with an American badge on it.
Quote from: AutobahnSHO on January 13, 2009, 02:32:40 PM
The thing is there are a LOT of people looking for a good little car to just drive to work.
Honda made it's name and brand off RELIABILITY on tiny little econoboxes. It was only after a long while of selling tiny civics and small accords that they started moving more upscale. The Civic now is bigger than the Accord of the 80s-90s, isn't it??
Ford is pursuing features in some of it's cars, that's one way to get a good customer base. Problem is a lot of these features will break/malfunction.
If they can bring a barebones Ka to market CHEAPLY, they will be able to compete with the entire cheapie car segment. Again, this car has to be sold at a very low price. just like it is in Europe. No one there pretends it's anything but basic transportation.
AutobahnSHO: When the Civic was introduced, the US competition was the VW beetle. Now, there are good small cars all over Fuck & Creation--and they offer a lot more utility than the Ka or the Ka competitors while being only a little larger. Ergo, the Ka had better be producible exceptionally inexpensively and offer record fuel mileage or sales may have a tough time reaching the break-even point. Detroit (or more correctly, Dearborn in the Ka's case) doesn't need break-even vehicles right now--each new model has gotta smack homers or at least triples just to be worthy of consideration in these desperate times.
Can the Ka do that? A few years from now, the model line-ups of the surviving manufacturers will not include a lot of models in their dealerships today, and that's
not a bad thing--failing to offer the customers products that they will buy has buried a vast array of retailers over time.
The marketplace has no sacred cows...
Quote from: Nethead on January 14, 2009, 09:04:12 AM
AutobahnSHO: When the Civic was introduced, the US competition was the VW beetle. Now, there are good small cars all over Fuck & Creation--and they offer a lot more utility than the Ka or the Ka competitors while being only a little larger. Ergo, the Ka had better be producible exceptionally inexpensively and offer record fuel mileage or sales may have a tough time reaching the break-even point. Detroit (or more correctly, Dearborn in the Ka's case) doesn't need break-even vehicles right now--each new model has gotta smack homers or at least triples just to be worthy of consideration in these desperate times. Can the Ka do that?
A few years from now, the model line-ups of the surviving manufacturers will not include a lot of models in their dealerships today, and that's not a bad thing--failing to offer the customers products that they will buy has buried a vast array of retailers over time.
The marketplace has no sacred cows...
46 MPG. As I said earlier, the Ka is not too much smaller than the Yaris 3-door. There is a large (and growing) market of people who just want cars for themselves, and an Accord or Camry for one person doesn't make sense. It's larger and more conventional than a ForTwo. This car is an ACTUAL subcompact.
Quote from: the Teuton on January 13, 2009, 06:25:36 PM
Someone who lives in Europe:
Is the Astra a premium compact in your land?
It's not here. It sells for the same price as a Corolla, Mazda3 et.al. and is probably perceived less-favourably than the more-expensive Golf. Not poorly, mind you, but it's essentially just standard small car.
I think Mullaly's thinking ahead. I'm sure it'd be popular with college students and commuters.
I'm always amused by so-called 'emissions hurdles' facing European manufacturers looking to export to the US - those which are located in countries that tax CO2 emissions, cars entering town centres, cows farting, humans breathing, haybales falling over etc. are blocked by the world's second-largest emitter of CO2. :lol:
Quote from: the Teuton on January 13, 2009, 06:25:36 PM
Someone who lives in Europe:
Is the Astra a premium compact in your land?
It's not premium at all. It's a normal mainstream sedan that competes with the Ford Focus for example. The Opel Vectra battles it out with the Ford Mondeo for example.
Quote from: 2o6 on January 14, 2009, 09:11:00 AM
46 MPG. As I said earlier, the Ka is not too much smaller than the Yaris 3-door. There is a large (and growing) market of people who just want cars for themselves, and an Accord or Camry for one person doesn't make sense. It's larger and more conventional than a ForTwo. This car is an ACTUAL subcompact.
2o6: The Nethead here ain't dissin' on the Ka--no, not at all. I'm just pointing out that the original Civic had great success at a time when the competition was the VW beetle and not much else. Today there's lots of good small cars--not many as small as the Ka, to be sure, but cars just a little larger that offer a quantum leap in utility over the Ka and other cars that size.
Pit the Ka against all other cars its size, throw in all other cars within eighteen inches (an arbitrary figure pulled out of the air to emphasize that we're talking small cars here) of the Ka's length, and I see a hotly contested market in which the Ka's share may never be large enough to cover the costs I mentioned in an earlier posting. Many parents of college students would see a 2002 Civic or Corolla as a safer, more practical alternative to the diminutive Ka. I dunno if a Ka can transport said college student and the general baggage attached thereto back and forth to Tech or State at the beginning and end of a semester, either. Hell, can a Ka even hold the student baggage for a week-end back with the homeys? Just the shoes a sorority girl would need to tote back home for any decent kind of week-end would be daunting cargo for an Expedition or a Suburban...
I think they should wait and see how the Fiesta does.
Quote from: VTEC_Inside on January 15, 2009, 09:12:36 PM
I think they should wait and see how the Festiva does.
Festiva?
You mean Fiesta.
Quote from: 2o6 on January 16, 2009, 06:28:28 AM
Festiva?
Fixed... Anyways, it seems to me that a stripper model of that car might do better than the Ka.
You mean Fiesta.
Quote from: 2o6 on January 16, 2009, 06:28:28 AM
Festiva?
You mean Fiesta.