Ford starting asking its prospective US customers in the mid 1980s: “Have you driven a Ford lately?” For 13 consecutive years, their answer was increasingly likely to be “no” as it lost market share. Fast forward to today when Ford again trounced earnings expectations, the most profitable third quarter in the company’s 107-year history while gaining two points of share since 2008.
The more commanding “Ford. Drive One” marked the nadir. Of course a company’s success has little to do with slogans and much with management. Perception affects reality though. Investors and customers really believe that Ford is a much better company than it was a few years ago and that has created a virtuous cycle.
Perhaps the most significant aspect of Ford’s renaissance has been its professed focus on quality and the bottom line. Detroit rivals previously unfamiliar with the phrase “less is more” may attribute Ford’s success to their own turmoil, but Ford is walking the walk, not just talking the talk: restrained rebates, inventory levels and fleet sales confirm it. Ford is putting out a better product and convincing customers to pay accordingly.