To
say that the Ford Motor Company (NYSE:F) has been an influence on the global
automobile industry would be something of an understatement. Nearly 110 years
of futuristic innovation, iconic products sparking infinite appreciation
amongst the general public and searing envy amongst rival car-makers, the Ford
Motor company has seen more than its fair share of groundbreaking concepts. Since
its infancy, Ford has been known for developing cars that shape entire
generations. The Mustang, GT, Galaxie, Shelby and the Lincoln, to name a few,
have been the crests of automotive innovation of their time. Through consistent
product development and a watchful eye towards its target audience and its
fickle demands and tastes, ford has managed to stay relevant all this time.
What is even more amazing is the fact that with each of their new cars they
have struck the balance between tradition and modernity; producing cars that
are not out of place in this day and age yet are somehow connected to their
older brethren.
An
obvious example of this niche of constant vehicular metamorphosis would be the
Mustang line of cars. First introduced in 1964 as a 2-door coupe, this soon to
be genre-defining automobile became synonymous with speed, resilience, quality
and a style that is both timeless and unique. The “galloping horse” image soon
became a brand in and of itself, as motion pictures, television shows, athletes
and all sorts of celebrities began to call the mustang “their own” car.
Moving
to more recent times, as the historic automaker looks to introduce the 2015
mustang, many experts claim that Ford’s best days are behind it. Despite the
new mustang being called the most awaited car of 2014-15, analysts predict
underwhelming sales figures and in light of the recent dips in revenue and F
stock price, Ford needs a car that can stabilize its monetary situation and it
needs it now more than ever. Another challenge that Ford, and many other
competitors in the industry appear to be facing id the increasing costs
incurred by product recalls and investment in aftermarket repair services.
Despite posting higher than expected revenues in the first quarter of 2014,
Ford is still in troubled waters when it comes to profits.
Enter
the Ford Fiesta ST. The newest addition to fords 2014 product lineup, this
subcompact mid-level market penetrator with mass appeal is one horse that Ford
is betting will pull through for them. The previous Fiesta was a commercial
success, scoring massive sales primarily in North America as well as the
Chinese and Japanese markets. It dominated the US subcompact car market mainly
due to the fact that it simply lacked competitors that could match it in
quality, price, and longevity. The new ST model is an improvement on the
original in numerous ways. Primarily targeted at young drivers, the fiesta
gives improved fuel efficiency, more powerful engine, better interior and more
options. This comes at a time when the company realizes that the need to stay
relevant is more necessary than ever. Consumers are shifting in groves towards
cars that provide higher fuel efficiency, miles-to-the-gallon are now trumping
brake-horsepower and torque. And as the newer generation of drivers matures,
they are going to need products tailored to their highly specific needs and
tastes. The automobile market is unique in that it normally entails a higher
consumer loyalty level than most other industries. Drivers that find one
vehicle of one brand appealing often choose the same brand for their second
purchase. This is something all automakers are increasingly becoming aware of
and capitalizing upon.
It
stands as a testament to ford’s marketing, designing, and production abilities
that it boasts one of the highest consumer loyalty rates in the whole industry.
Let us hope, for the company’s sake, that this lull in performance and revenues
is only temporary.
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