The Sun is Setting

A Road & Track article was recently released saying that Ford has filed for the name “Skyline” to their trademark list. While Ford did have trim levels with the name Skyline in the past, and there was a concept with the name Skyliner in it, Ford is not the manufacturer most notable for the name.

In the automotive enthusiast world, Nissan is the manufacturer that comes to mind when the name Skyline is said. While the newest Nissan flagship sports car is called the GT-R, it used to carry the name Skyline, but never has in the United States officially. That is because up until the R35, the car was never officially sold here in the States. However, if it had, up until the R35, the cars had the name of Nissan Skyline GT-R. The R35 that was sold in the America did not have the Skyline name, and I’m not really sure if it did anywhere else except Japan, if it even did there either.

While you might be thinking to yourself, gosh, why is Ford encroaching on Nissan territory and how much more could Ford ruin good names? I am going to approach this from a different angle. My beef is with Nissan. Why doesn’t Nissan care enough to keep that name? Nissan has an upcoming new Z car that will launch soon, but goodness gracious, they have a lineup that is long in the tooth and they have for a number of years now, been staying in business by fleet sales. Nissan tends to be the punch line of many jokes. They are not helping themselves by neglecting to keep the Skyline name in their library just in case. It is sad to say, but the sun is setting on the Skyline name and possibly even Nissan itself.

Should Models be Brands?

 

The subject of should models become brands has been relevant and important lately. I have had conversations with family and friends about the subject since some have texted me wondering why certain car manufacturers are doing certain business decisions. So, here is my take on should car models become brands.

In 2009, Dodge/Chrysler/Daimler/FCA split off the Ram pickup truck from Dodge and created their own brand from that model. That has been a very successful decision. Hyundai has split Genesis off into its own luxury brand, copying a page from Lexus, Acura, and Infiniti recipe, but also making a brand from a model. Chevrolet has rumored that they might consider making the Corvette a brand in itself. Manufacturers have split models into brands in the past, some have success and some were a failure.

Now, Ford wants to make a Mustang a brand, starting with the all-electric SUV, the Mach E. There is also a rumor that they want to make the Bronco a brand as well. Although, what doesn’t make sense is how they use the Raptor nameplate. They utilize that name for the F-150 Raptor, and Ranger Raptor, but apparently that name will not be utilized to distinguish a more powerful Bronco. A beefy Bronco is rumored to be called a Warthog. Confusing, but whatever.

What Ford should learn though, is they have almost been in this situation before. They had Mercury, that they closed because they couldn’t seem to explain to buyers why they should pay more for a car that is identical to the Ford equivalent. Lincoln almost had the same fate. Hopefully, they have learned from those experiences and don’t mess up a new Mustang or Bronco brand. Toyota and Subaru are also the same boat. They had the Toyota 86, the Subaru BRZ, and the Scion FRS all on the market at one time. And now they are almost doing the same thing, but instead of the Scion available, the Supra has taken that slot. We will have to see how this goes. 

I wouldn’t be surprised if Nissan does this with their Z car. Especially with the launch of the new 400Z. The Z name is known by people both with and without automotive knowledge so that would be a good start for them.

What do you think? Should auto manufacturers start making separate brands from their successful models?

Ford for all the Marbles

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Last year Ford announced they would no longer be producing compact, small, mid-size, and large cars. They were changing their long term plan to only produce cross over, SUVs, and pickup trucks. Not long after that announcement, the electric Mach E Mustang was introduced, and that vehicle seems to be the kick off of a new large vehicle line up.

But, this plan might be in serious peril before it even gets started. Let’s break down a few elements that might make Ford’s plan very challenging. Many of these things can change quickly though, as they all are very recent themselves in some regard, so this is my opinion and speculation.

First, the world wide COVID-19 pandemic is absolutely destroying the global economy. Auto manufacturers are taking a beating and sales are almost non existent. With people out of work, it makes it hard to entice people to buy a shiny new expensive pickup truck.

Second, the factory that supplies parts for Ford, Ram, and Toyota trucks was recently damaged by a tornado. While this will hurt Ram and Toyota as well, it made most headlines as interrupting Ford’s production. Since Ford’s entire lineup is mostly large trucks and SUVs and the parts supplier that provides the transmissions for those vehicles is damaged, all the eggs are in one basket and about to break.

Third, oil prices are deep in the red in trading value. While that is great for consumers because prices at the pump are very low, this unfortunately isn’t the time to take advantage of it. A thirsty F-150 can be filled for cheap at the moment, but with all shelter in place guidelines and people out of work, it is unlikely that people are going to be wanting a vehicle that is expensive to fill up in the future.

Fourth; very recently Ford announced that they are wanting to achieve 10 percent profit margins, even through this current circumstances. They have placed Lisa Drake in charge to accomplish that goal. She was in charge of the 2004 launch of the 11th generation F-150. That particular skill is what they are desiring her to perform on because she is also tasked her with increasing awareness of new products being launched, something Ford has struggled with for the past few years. Most notable the newest Ford Explorer botched release.

The next blog will be about the fifth and final blow to the Ford fiasco that is brewing. But with all the issues mentioned above, Ford has put all their chips on the table. SUV’s and trucks that with gas prices low but a worldwide pandemic not facilitating using those vehicles, a damaged factory, and the need to produce and profit within all of these circumstances, it is going to be a tough year for the automotive industry in general but I think Ford will really be feeling a pinch. Although Ford has weathered a lot over the years, so I should stop being so negative. The American spirit will prevail.