Ford’s Momentum Takes a Hit

by Lloyd Frazier

FordInFlames Remember all those reports in the past about Ford vehicles bursting into flames while parked in America’s garages?  Several million vehicles were recalled then.  The recent Toyota/Lexus 3.8 million vehicle recall for floor mats interfering with the accelerator pedal pales in comparison.  Now, Ford has to deal with the ongoing saga of the ‘electrical switch on the cruise control’ causing sparks and fires. 

From Freep.com 14-OCT-2009 ‘4.5 million Fords are recalled’

Ford is recalling 1.1 million Ford Windstar minivans, with the model years 1995 through 2003, which could have the problem. The automaker also is recalling 3.4 million additional vehicles that have the switch, including Ford Excursions, Explorers and Rangers of various model years, going back as far as 1992.

Ford states that “While the data show the majority of the vehicles being recalled do not pose a significant safety risk, we are recalling the vehicles to reassure customers and eliminate any future concerns," Ford said in a statement.

This news comes at a time when Ford has built some good sales momentum…and no government bailout to do it.  Plus, they just released a phenomenal new Taurus for the new 2010 model year that is taking the country by storm.

Will this have a lasting effect on new sales?  Maybe.  If the mainstream media keeps this story alive and well it just might take its toll.  However, you saw how quickly the Toyota recall of the floor mat issue went away.  Hopefully, this Ford recall will dissipate from our memory just as quickly…well, until the next debacle, at least.

Is Fiat Repeating GM’s Mistakes?

by Lloyd Frazier

fiat emblem The last three months of reports coming out of the global auto industry has been full of wild speculation, some good news, and mostly bad.  We are seeing the beginnings of a major realignment of this industry due to the global economic meltdown.  The big question of the moment is why Fiat is so determined to follow in GM’s footsteps…and Ford’s for that matter.  They seem to be on a crusade to rule the auto world.  First they snag Chrysler, now they are after Opel and some others.  Ford methodically shed Jaguar, Rover and Aston Martin last year, just ahead of when the major meltdown started materializing.  That is why they are ahead of the curve in the global scheme of things.  GM is still trying to slim down by dropping Opel, Saab, Saturn, Hummer, Vauxhall and some others.  These domestics did what Fiat is now doing, gobbling up more than it can chew.  And at the worst time in history.  Or, do they know something that we industry observers are unaware of.  Maybe this is the perfect time for bargain shopping.

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