Monday, May 25, 2009

TTAC is digging FoMoCo's grave prematurely in my opinion

Over at The Truth About Cars, they're taking up shovels and getting ready to put FoMoCo in the grave and I think the constant "Death Watch" series they've been doing these last few years have gone to their heads. Some of the reasons Edward Niedermeyer says Ford will fail are their not being on the Uncle Sam payroll will be a disadvantage when competing with GM and Chrysler in the future. Also the fact that the upcoming Focus EV will based on technology developed by OEM Supplier Magna, that will not be exclusive. Read the article linked in the title for yourself, but again I think the guys over at TTAC have just become reliant on their hopes that the big 3 will die. I'm not a journalist like them, but I dn't see a true reliance on Electric Cars as they do. Sure, all the manufacturers will have to make them to qualify for credits toward their CAFE, but if history has tought us anything, it's that the Internal Combustion Engine and it's ability to refuel on long trips will always be superior to pure Electric Vehicles.
Hybrids will be a better compromise and Ford is positioned better than GM or Chrysler in this segment. And let's not forget the EcoBoost program and Ford's research into Hydrogen Internal Combustion Engines. While I'll admit that Ford isn't out of danger yet, they have been able to decrease the number of dealers, lower labor costs, reshuffle their product mix and invest in alternative energy technology and are following a plan that will allow them to return to profitability within 2-3 years. And the Department of Energy loans for alternative technologies will be as available to them as to anyone else.
Sometimes I believe the guys at TTAC have become dependant on their Death Watches to the extent they'll be disappointed when Ford doesn't fail.

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