If I were the Car Czar (Part 3)

OK, today's target is Ford. Yes, yes, I know - Ford didn't take federal money, so the Car Czar has no say over them, but let's pretend...

And in the interests of full disclosure, Ford is my former employer, although I won't reveal any privileged information here.

Up front, I'd like to say that I think Ford is the domestic with the best prospects by far. Both their financial situation and their product portfolio (current and future) are much stronger than their Detroit (Italian?) rivals. But the bankruptcies of the other two have put them in more competitive positions in some ways. So here are my recommendations for the Blue Oval:

1. Reduce the size of the dealer network, and monitor dealer performance.

This one is tough, because franchise laws make it hard to eliminate franchises, but Ford has way too many dealers given their volumes. Incentives for dealers to merge could help drive a reduction, which in turn could help the bottom line. It's also important to make sure dealers are in tune with the "new Ford". The old Ford was all about the deal - incentives, special financing, etc. The new Ford is about product. Make sure dealers understand what they're selling. This is especially critical with all of the new features, like adaptive cruise control and blind spot detection, and ESPECIALLY Sync. Which brings me to #2...

2. Aggressively expand useful, innovative features.

Sync has been a wonderful selling tool. A number of people have told me that it made the difference in their buying decision. But so far, the Sync platform, which is designed to allow for expansion, has not been fully leveraged. Use the iPhone model and allow third-party development of applications (within reason, of course). Make sure it's fully integrated with all other vehicle features - climate control, navigation, etc. It's a powerful platform, and it can create a strong differentiator for Ford, especially among the tech-savvy youth market.

And don't stop there. Many of the other features that have been introduced are not related to Sync (like blind spot detection), and many aren't even technological (like the integrated step on the F-Series tailgate). But make sure all of the features have a purpose, and aren't just clever gadgets. The F-Series team has done an excellent job understanding what its customers want and delivering innovations that matter, like integrated trailer-brake control. Don't forget that the customer should drive the innovation, not the engineers.

3. Focus on the small cars

Right now, Ford's small car (the Focus), while certainly no slouch, is the weakest link in the Ford portfolio. Don't lose track of that market. For one thing, it's one of the few segments that's growing, and for another, it's a way to get people into the Ford brand so they can graduate to the bigger (and more profitable) cars later.

The Fiesta, with its strong feature set, good driving dynamics and aggressive styling, seems to be a step in the right direction, but the next generation Focus will be critical. And keep an eye on the competition - especially the Koreans. Vehicles like the Kia Soul and the Nissan Cube may not appeal to the older crowd, but they certainly create buzz in the youth market. Mini has been a hit since it came out, and Fiat is likely to be bringing the 500 soon. Ford has strong platforms in Europe and elsewhere that could be leveraged to create similar strong designs. Which leads me to point #4...

4. Leverage Ford's global reach.

Ford has outstanding design and engineering teams on five continents. With GM selling a good chunk of Opel, Ford is the best positioned to be a true "world brand". Let the Europeans and Asians focus on small-car engineering (which they do quite well), and let Dearborn handle the big iron. Use Ford of Australia's RWD experience to develop true performance platforms (next-gen Mustang based on the Aussie Falcon, anyone?). And make use of Volvo's engineering and safety expertise while you still can.

5. Don't try to be "the American Toyota".

Ford's focus on quality has been impressive, and quality levels are higher than ever. But remember that perception is reality. Buyers who are solely interested in reliable transportation continue to go to Toyota, because they have a reputation (albeit a bit tarnished of late) for quality. So Ford needs to have another "hook".

Quality with character can be that hook. People want reliable cars, sure, but they also want their cars to have personality. It's important to note that sometimes, a car with personality will also turn off some customers. Flex is a good example of this. Some people hate it, some love it. But everyone has an opinion. Make your cars something people will talk about.

6. Keep building the relationship with the unions.

Ford already has the strongest relationship with the unions among the Big 3. Keep it up. Sure, unions make some things more difficult, but those guys on the line can tell you a lot about the cars they're building. Just ask Toyota. With good union relations, you can dramatically improve quality, productivity and overall efficiency. And as we've seen, the opposite is also true. Make sure that the unions remain true partners in the business, and you will see the benefits.
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It's important to note that much of what I mentioned here, Ford is already doing. Alan Mulally has done an outstanding job refocusing the company on what matters. But they're still not out of the woods. A continued focus on customer and product will position them well to compete in the global market when the world economy bounces back.