Ford details "Way Forward" plan: Mercury to stay, new hybrids, more...

Ford today announced its comprehensive "Way Forward" plan, which aims to restore profitability to its automotive business in North America no later than 2008. "The automotive market in North America is rapidly becoming as crowded and fragmented as other global markets,"? said Bill Ford, chairman and CEO. Ford is recommitting itself to Mercury and has developed more focused positioning for the brand. Ford hopes its three American brands can each develop a distinct niche with unique customers. The company also said that hybrid versions of the Ford Five Hundred, Mercury Montego, Ford Edge and Lincoln MKX will debut in the 2008-2010 timeframe. The new hybrids will join the Ford Escape and Mercury Mariner hybrids, which are on sale today, as well as the Ford Fusion and Mercury Milan hybrids, which will debut in 2008. Ford also said that it will introduce new "white space"? products to reach customers in new segments, and accelerate plans to bring even more crossover vehicles and new small cars to market. "We know how to play offense and play to win,"? Ford VP Mark Fields said. "Our plan will deliver more products - from small cars to our largest trucks - that are unmistakably Fords."?



"One of the most important findings from this research is that Americans really do want to buy American brands, as long as they are competitive with the imports,"? said Mark Fields. "We know this, because it's already working in some segments today, such as the success of the new Ford Fusion in the import-dominated midsize car market.

"Of all the leading automakers, we believe Ford is America 's Car Company because of where we've been. In terms of economic and social influence, there is no other company that's had a greater impact on the lives of people in the U.S. and in the 20th century than Ford."?

Mercury

"The attraction of Mercury is modern, expressive design - one that is differentiated from Ford vehicles. Our Mercury target customer is not looking for product functionality that is substantially different from Ford vehicles. But they do have different attitudes and values, and they want a product that visually communicates that distinctiveness."

"Going forward, we will be more aggressive in appealing to these customers with clear, modern differentiation in the design of Mercurys, a unique purchase experience and marketing that is targeted, personalized and interactive,"? Fields said.

Lincoln

Ford's vision for the Lincoln brand is to make Lincoln the "reward for consumers who are living the American dream." The company sees Lincoln becoming the largest volume contributor to the Lincoln Mercury business.

"Lincoln customers don't need to shout about success. They are self-made people with enough confidence to be elegant and understated,"? Fields said. "That understanding of the Lincoln customers will drive our brand and product decisions going forward. "?

" Lincoln is about American luxury. There are many customers in this country living the American dream and who would prefer to drive America 's luxury car. That is where we are headed ,"? he added.

Straightforward Pricing

Ford is accelerating the clear-and-simple pricing strategy that began with the introduction of the Ford Fusion and Ford Mustang. Ford plans to reduce the MSRP of its products and dramatically reduce and cap rebates as it introduces new products.

" We started introducing clear pricing two years ago. The success of Mustang and Fusion proves that it works,"? Fields said. " We will bring sticker prices more in line with actual transaction prices and cap "˜cash on the hood' rebates as we introduce new cars and trucks into the marketplace. It will protect our margins and consumers, too, through higher resale values."?