Toyota passes Ford in Sales

"A Great Time to Lose?"

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Unless you have been living in a cave with Osama bin Laden the last few days, you have no doubt heard the media trumpets call out 2007 year-end sales data that show Toyota officially passing Ford to become the #2 seller of cars and trucks in the U.S. (Come to think of it, I bet even the well-connected bin Laden caught wind of this and shook his head in disgust.)

But this is actually great news for the U.S. industry, and especially for Ford Motor Company. Does this contradict everything you may have heard? Let me explain. I was on the new Fox Business channel earlier this week and shared my perspective on this news. (By the way--if you haven't checked out Fox Business, you should soon. It is a great alternative to CNBC and the other business-focused networks, and delivers hard news in a clear and almost entertaining way.)

2008 Toyota Sequoia Limited

This is good for Ford and the U.S. market because it means a) consumers are finally leaving their egos at the door and choosing the right-sized vehicle for these uncertain times and b) Ford is willing to take hits to its bottom line in order to get its ship pointed in the right direction. And as said on these pages many times the last few years, that means stepping away from quick-fix fleet and rental sales and refocusing more than a trickle of engineering and marketing dollars on vehicles that are not pickups or large SUVs for the first time in many years.

2008 Ford Edge Crossover

Now don't get me wrong...it isn't that Toyota only sells fuel-efficient microcars and hybrids. It has been well-documented that its Sequoias and Tundras are as thirsty as any competitors from Chevy or Ford. The difference is that Toyota offers truly attractive options that Ford in particular is lacking in its line-up. How did Ford end up in this predicament? By taking the easy road the last 15 years and building its business on vehicles that were sure to be out-of-step once the times changed. And the times have changed.

It is no longer responsible to buy the MOST vehicle you can for your dollar. Now it is important to find the RIGHT vehicle for your honest transportation needs. And much to Ford's chagrin, that means many families are finding smaller crossovers and right-sized sedans are more than sufficient for their honest requirements.

Posted on 2008-01-07 | Permalink | |

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