You are on page 1of 6

Ford's Drive To Be A Global Car Company Since it started in 1903, the Ford Motor Company has grown to employ

more than 338,000 workers and market its products in over 200 countries. Ford has more than 10,500 dealers worldwide and holds a 13% market share of the world car market. It became clear that one of the world's oldest automakers also planned to become the largest when Alex Trotman became Chairman and CEO of Ford in 1993. Trotman initiated Ford 2000, a program that consolidated the North American and European operations and created a global management team that would eliminate duplication, initiate the best practices, and use common components and designs. The results have been astounding as Ford solidified its position as the second largest automaker in the world with revenues of $128 billion. A product of Ford 2000 was the first genuine global car, the CDW27. The car was a result of a need in Europe for a mid-sized family car. However, the market potential for such a car was only 250,000 units a year. The CDW27 was designed to sell an additional 100,000 units around the world so the cost of its development and production could be spread over more units. In Europe the car was called Mondeo, and it was called the Ford Contour and Mercury Mystique in the U.S. The car cost $6 billion to develop and is being sold in 59 countries. Ford's Web page (, connects the browser to Showroom Boulevard, a history of Ford, financial and investment services, Ford news briefs, the global home page, Electric Vehicle, and a dealer locator. The Vintage Vehicles section gives a short history of some of Ford's classic cars, including the Model T, Model A, Mustang, Thunderbird and Edsel. One of the most interesting features is a link that allows customers to fill out a questionnaire and to register as an "oncall" team member. The questionnaire contains questions related to frequency of driving, how a vehicle was acquired and a number of demographic questions. A member of the Ford World Wide Web Customer Focus Team receives information from Ford via e-mail about incentive programs and announcements of new products and services. Questions: 1. How does Ford need to do to make sure it is sensitive to changes in the cultural environment of a country? 2. Do you think Ford will be successful in its drive to be a global car company? Why or why not? Sources:; "Ka's Costly Economy Drive," The European , November, 7, 1996, p. 34; Tony Walker, "Ford Braced to Enter Chinese Truck Market with $40 million Stake," The Financial Times , August 23, 1995, p. 15; Wade Hoyt, "Chevrolet Lumina and Ford Contour: Going Head-to-Head Against Popular Japan Sedans," Medical Economics , February 27, 1995, p. 44.

Farley recalls that his company. Enlarge This Image . Ford Motor. James D.ADVERTISING Ford Tries a Global Campaign for its Global Car By STUART ELLIOTT Published: February 24. the last time the price of a barrel of oil was in three digits. was readying a new version of its big F-150 truck. 2011 • • • • • • RECOMMEND TWITTER LINKEDIN SIGN IN TO E-MAIL PRINT REPRINTS • SHARE IN 2008.

Ford Motor is introducing a worldwide line of compact cars under the Ford Focus name that will include hybrid. Ford’s group vice president for global marketing. ‘Hey. what’s it like to be launching the F-150 in the face of $4 gas?’ ” Mr. Add to Portfolio • Ford Motor Co Go to your Portfolio » Enlarge This Image A Ford Focus print ad. plug-in hybrid and electric models. Jim. with Martin Sorrell. Ford is calling the 2012 Focus its first truly global product — that is.” . Farley said. group vice president for global marketing. “But never this approach. sales and service at Ford. sales and service. “Many of you asked. The company hopes it can sell a million Focuses — Foci? — in the next 12 months. said to reporters at a news conference on Thursday. “We’ve tried ‘world cars’ before. as oil flirts again with a triple-digit price tag. “I feel very fortunate to be in a position that so much of our brand lineup is new product” in smaller size categories like the compact Focus and the subcompact Fiesta. Farley.” Mr. above left. on Thursday. created from scratch to share as many parts as possible wherever it is built or sold.Monika Graff for The New York Times James D. Now. chief of WPP. Now. Farley. he added.

“They just want to buy the best product. near the Ford Motor world headquarters.” Television and print ads will look similar from country to country.” Ford Motor spends an estimated $4 billion each year on worldwide advertising. will be more customized for local markets. digital ads.” Mr. • Despite the “It’s a Small World” tack. Shanghai. first in the United States.” Mr. we had eight. the ads will not address the global origins of the Focus by having. New Zealand and South Africa. Farley said. a unit of WPP that is a consortium of agencies devoted to all things Ford Motor. really important car” to Ford Motor’s efforts to thrive in a hyper-competitive automotive industry. Mr.So it is appropriate that the Focus is the subject of what Ford Motor is calling its first truly global product advertising campaign. Farley said. Farley said. it will get “the biggest launch we’ve ever had. São Paulo.” which Ford Motor regularly sponsors. “That doesn’t matter to customers. on Web sites and in social media. . There are offices in London.” he added. then in Australia. Brazil. The campaign will follow the roll-out of the Focus to dealer showrooms. It will reach China and South America next year. a British voice-over announcer in American commercials (or vice versa).. “a really. “but it’s hundreds of millions of dollars. the biggest media weight. the company has previously run ads worldwide meant to burnish its corporate or brand images. just for ’11. then in Europe. “The last time we launched a car. say.” The campaign is to begin on Tuesday during an episode of “American Idol. Mich. The campaign is being produced by Global Team Ford. and Dearborn.” “I can’t give you a figure. I never expected to have one campaign. “Frankly. Reflecting that the Focus is.

000 total employees work for Global Team Ford. Sorrell said. the office in Dearborn that works on campaigns for North America. creative director at the London office. for more than an hour.” The initial batch of 50 television commercials is devoted to highlighting 14 technological features. Barlow also attended the news conference. Ogilvy & Mather Worldwide. sales and service. “Drive one. they took turns describing the Focus campaign and answering questions. because it is “the essence of what makes our product different. on the West Side of Manhattan. The event was held at the headquarters of a Global Team Ford agency. the chief creative officer at Global Team Ford.” Mr. Also present was Martin Sorrell. The Focus campaign will zero in on what Ford Motor considers to be the technological advantages of the car — features like assisted parking and Wi-Fi hot-spot capability that are typically found only on larger. under the supervision of Toby Barlow.”and a Focus theme.) That democratizing of technology is a strategy by Alan R. part of a contingent of executives from Global Team Ford. About 3. Ford’s chief executive. as he put it. who shared a stage at the news conference with Mr.000. Farley. to add value to smaller cars to convince consumers that they are worth paying more for than previous pared-down models with dismissive descriptors like econo-boxes.995 to about $27. a great-granddaughter of Henry Ford.” he added. WPP and Ford Motor. “our largest relationship. known as Blue Hive. who is director for global marketing.” “Our research shows that shorter commercials are maybe a smidgen less effective than 30. Mulally. (In the United States. Sorrell’s presence underlined that Ford Motor is. Mr. who is also executive vice president and chief creative officer at Team Detroit.or 60-second spots. Farley said. The lower cost of air time compensates for that.Greg Burke.000 of WPP’s 140. our most complex relationship” out of all WPP clients. “Feel the difference. Each spot will run 15 to 20 seconds and use the Ford brand theme. chief executive of WPP. more expensive cars. “The bet was technology. is taking the creative lead. Focus prices will range from $16. Mr. .” Mr. “One of the biggest challenges in the launch was explaining the bet we made around the product. The phalanx included an actual Ford: Elena Ford.

on page B4 of the New York edition. Those commercials could start to appear more frequently if. “or.” A version of this article appeared in print on February 25.Some commercials will “tell a fuel-economy story. the Ford Motor global client leader for WPP who was also at the news conference. Rogers. 2011. is expected to get 40 miles a gallon. as Mr. maybe as some people are saying. The base-model Focus. Sorrell said. with automatic transmission. . $150. oil prices reach $100 a barrel.” said George S.