EVs have dramatically disrupted the vehicle marketplace and are continuing to change it. EkaLore created the Alien Invasion framework to clarify the effects of new competitors who don’t follow the ‘rules,’ come out of nowhere, and suck the profit out of the marketplace. These market invaders dramatically affect GM, Ford, Toyota, VW, BMW, Mercedes, Stellantis, and other traditional/legacy manufacturers.
In this post, we’ll view Ford Motor’s situation through the lens of the Alien Invader Framework.
Ford Motor, and others, are trying to compete in global marketspaces disrupted by rapidly changing consumer expectations, government regulations/preferences, and technology changes. These changes are so disruptive Ford has started a “transformation of this magnitude” to restructure its entire enterprise, invest in manufacturing, upgrade product quality, and compete in EV platforms. Ford Motor’s changes are responses to an Alien Invasion. Ford Motor is responding and not establishing a clear leadership in those areas by transforming its enterprise.
Ford Motor has announced it will be “unapologetically American” as major profit margins come from F-150 pickup trucks (est. USD$10-13K per unit), and global market shares are under pressure. Financial and market pressures are compelling major investments in North America. At the same time, the lack of engineering staff talent hinders global platform and technology development (software, batteries, EV components).
In contrast, major indicators and attitudes are pushing back against Ford:
1) Perception matters – Ford is not seen as a cutting edge brand like Tesla or with engineering excellence like German manufacturers
2) Global commodity prices float – Ford cannot own the whole supply chain. It must rely on partners for major commodity elements (batteries, metals, plastics, energy)
3) Talent doesn’t seek out Ford (where some competitors are in the Top 5 prestige employers to young workers), meaning engineering productivity and product quality is difficult to improve
4) Recessionary changes in buying patterns (already flagged by the Ford CFO) will force other choices to reduce costs
5) Technology gaps (manufacturing, software, ecosystem) will require additional priority, investment, talent, and management attention
EkaLore’s Alien Invasion premise looks at financial strengths, business model changes, and technologically driven changes. Ford has to respond to all of these areas to defend against Alien Invasion challenges.
Our next release will look at recent releases from Ford Motor that look at real-life examples of moves to address the challenges listed above.
If you’d like to read more about Alien Invasions in this and other markets, you can find our posts at www.ekalore.com/alien-invaders
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