Danger, Ranger
There’s really no need to rehash what has already been covered ad nauseam: Ford Motor Company’s number one problem involves product. Specifically, it involves the utter ambiguity of the company’s overall product line, such as products that are either already completely outdated (or are quickly becoming that way), products that are either totally irrelevant or will be soon, and products that are so close to being the same thing that they are set to cannibalize each other’s sales at an alarming rate.
Compounding this predicament is the fact that Ford’s competition is fiercer than ever, petroleum prices are still high and threaten to go higher, and the domestic business environment, still reeling from the U.S. Supreme Court’s recent pro-environmental decision, seems to have plopped Ford smack-dab in the middle of the trash compactor scene from the movie Star Wars.
Things are definitely looking bleak for our glass house heroes at the moment, but one bright spot still – for at least a little while longer – shines brightly.
It’s spelled T – R – U – C – K – S, and it’s one product area where Ford never fails to deliver the goods on a world-class level.
As any sophomore business major will tell you, one of the more pleasant components of a good SWOT analysis is the “Opportunities” part. An honest assessment of Ford’s present strengths, weaknesses, and threats may find it hard to focus on the opportunities hidden deep within the company’s current circumstance, but those opportunities do exist. It’s just a case of Ford seeing the proverbial forest for the trees. Time is of the essence, however, and the opportunities with the most immediate feasibility – and the ones that also have the greatest chance for success (profitability) – should be given priority…and soon.
When folks talk about a segment of the new vehicle market where a Ford product is the “sole survivor,” they’re usually talking about the company’s large, body-off-frame, rear-wheel drive “Panther” platform sedans (the Crown Vic, Grand Marquis, and Town Car).
But there is one other segment – one that’s almost just as seemingly irrelevant these days, according to the marketing wizards and bean counters – in which Ford Motor Company fields the sole surviving entrant: The (truly) compact pick-up market with the Ford Ranger.
The Ranger’s story is somewhat of a sad one…it’s essentially the little truck that the market left behind, but watch out! It’s also the little truck to which the market may soon return.
All new for ’83, the Ranger replaced the Mazda-outsourced Ford Courier shortly after the S-10 replaced the Toyota-outsourced Chevy LUV in the then-growing compact pick-up market. A perennial sales champ over its domestic and foreign competition, a host of updates kept the Ranger fresh until it’s sole redesign in 1993.
Minor updates have continued through today, but given the Ranger’s declining sales, its Twin Cities assembly plant scheduled for closure sometime next year, and Ford’s cryptic statement that “future product plans surrounding Ford compact pickups will be announced closer to the end of Ford Ranger production in Twin Cities in 2008,” it appears that either the company plans to abandon this segment altogether, or, more likely, they haven’t yet figured out what they will do.
That leaves the Ranger to flounder, with fire-sale fleet deals to exterminating companies and the occasional retail unit making the modest (sunk) production cost seem worth it for just a little while longer.
When the last Ranger rolls off the Twin Cities assembly line next year, all of Ford’s pick-up truck eggs will once again reside in the Full-Size basket, the mid-sized segment having been long-ago forfeited – like so many other segments Dearborn has given up over the years – to the company’s more ambitious (and now more financially capable) competition.
But what if Ford had a better idea for the Ranger, and for pickup trucks in general?
What if, instead of hatching risky schemes for three insufficiently-differentiated Ford CUVs (let’s call them “Cannibal Utility Vehicles” since that’s all they’ll do to each other, anyway) to occupy virtually the same niche within the each dealer’s showroom, Ford proactively reinvented the compact pick-up genre with an all-new appropriately priced and appropriately sized (though still compact) Ranger?
On the surface, such an idea seems even more risky than Ford’s present segment-crowding exploits. After all, the Ranger – again, the only real compact pickup still on the market – is selling so poorly that, without the benefit of its sunk-cost production and near-zero marketing expenditures, its manufacture would be halted tomorrow despite its segment monopoly. That’s right…conventional wisdom restricts such rolls of the dice only to corporations awash in venture-capital levels of cash and market share (corporations called “Toyota”).
Given the above, I’m sure that Ford has previously toyed with the much safer idea of jumping from the compact pickup segment to the now-crowded mid-sized pickup segment, perhaps even retaining the Ranger name. (Though what name could be better for a new, mid-sized Ford pickup than the legendary “F-100” moniker?)
Clearly, this would be a much less perilous strategy than replacing an existing truck that’s not selling with a much more costly-to-produce new one that probably wouldn’t sell that well, either.
But that’s not the point.
The point is this: Ford is an undisputed leader in trucks, and as such, it should, by virtue of that leadership – both in image and in numbers – provide its customers with nothing less than a full line of trucks – compact, mid-sized, and full-sized.
After all, Ford is America’s truck company, isn’t it? And isn’t expanding Ford’s truck franchise by offering a full line of significantly-differentiated pickups an opportunity for the company to exhibit some real market leadership, especially when this could be accomplished by merely a) not abandoning a product segment it still occupies (increasing fuel prices may well force competitors to return to compact trucks, after all), b) introducing a top-notch mid-sized truck (something every truck competitor but Ford currently offers), and c) continuing to aggressively refine its full-size trucks (as the competition is more brutal than ever before)?
There’s no reason for people like me to speculate about how Ford should do this. I’m not advocating an all-new Ranger, or even a vehicle wearing the Ranger name. But I am saying that the compact pickup market could very easily return in a big way, and that if any company should remain in that segment, it should be Ford, albeit with a worthy product (which, unfortunately, the aged Ranger is no longer).
And, in addition to this, a mid-sized Ford pickup truck should definitely be offered. In the 1980’s, Ford was content to let Chrysler own this then-fledgling part of the truck market with the Dodge Dakota. Though it would apparently never happen in today’s Ford Motor Company, product gurus of the day probably figured that a mid-sized truck would effectively rob more sales from the F-Series and Ranger than it would generate on its own. Maybe they were right, but that was then, and in the 25 years since, a lot of mid-sized truck shoppers – and their dollars – have left Ford showrooms for the competition after deciding that the F-150 was too big and that the Ranger was too small.
Though the current F-Series represents Ford Motor Company’s bread and butter like no other vehicle ever has or likely ever will, there’s a good chance that this year, for the first time in this writer’s life, the F-Series will not be the best-selling vehicle in the U.S. Competition is more vicous than ever before, and with the spectacular new products from GM and Toyota, Ford needs a heavily revamped and improved F-150 yesterday. In this case, Dearborn should definitely “Dance with the one that brung ‘em,” and do whatever it takes to keep the F-Series number one, as abandoning that legacy would rob Ford of yet another important-yet-intangible corporate asset that not even Toyota can replicate: the heritage of truck leadership.
But as much of an ally as Ford’s truck heritage is, the wrong product mix is capable of quickly undermining that advantage. Here’s an example:
When it comes to pickups, the name “Ford Trucks” represents a brand that is distinctly American, in legacy and in image. Like Weber grills, Coca-Cola soft drinks, or Smith & Wesson firearms, the perception of this brand in the mind of a target customer reflexively tends to illicit good feelings about the brand in general.
But when those customers actually walk into a Ford showroom, they need to find a “distinctly Ford” product that still meets their unique needs at least as well as the competition’s product does. If Coke only offered one soft drink – Coca-Cola Classic, for instance – then many diet- or caffeine-conscious soft drink buyers would walk out of the supermarket with a Diet- or Caffeine Free-Pepsi.
Ford has done the “full-line” thing extremely well with sport utility vehicles, and appears to be doing it too well with cross-over utility vehicles. Despite the success of the F-Series, this concept hasn’t been successfully employed with trucks, other than to keep the sadly obsolete Ranger on perpetual life support.
But doesn’t Ford’s passenger car line need just as much (and just as urgent) attention right now?
You bet it does.
Sadly, however, there are probably more customers to be lost on the truck side of the market at the present juncture. I can’t tell you how many people I’ve met over the years who are loyal Ford Truck customers but would never consider buying a Ford passenger car.
That needs to change (and change quickly) if Ford is to survive. But a much quicker route to bankruptcy exists in allowing the legions of loyal Ford Truck buyers to jump ship in favor of the competition.
The world’s best pick-up trucks – a full line of them – are the solution, and the pitiful, little lame duck Ranger represents one of the best places for Ford to start.