The Walking Dead

This is amazing. Ford is a dead company, a dead brand – yet it is still walking.

When you are on pace to lose 24 billion dollars in a year, it’s time to call it. It’s time to say that business as usual, no matter how many tweaks get made, isn’t going to work. It’s time to face up to what you are, and focus.

Ford is a truck company.

Over the past 25 years, the only shining star in the Ford portfolio is trucks. And as best I can tell, they are really great at it. I don’t own a truck, but they have been the leading truck brand for like, well, my whole life. And they have done that while being distracted with cars, rental companies, and every other business venture known to man.

But what if Ford did nothing but trucks? Trucks, trucks, trucks. THE truck company. Well, they would kick ass it, own the market, and drive everyone else out of trucks. They would become the premium truck company, and anyone who wanted the best truck? They would buy a Ford.

Oh, and Ford would make money – lots of money. Because trucks are where all their profits come from now anyways. And if they would lose all of the expense and distraction of making or owning 50 other brands, they would be set.

Would Ford be a smaller company? Sure. But who cares? The era of diversification is dead; the era of specialization is  here. Being big and losing 24 billion dollars a year really isn’t  so cool. Owning a category and being the leading brand is far superior.

I mean would you rather work at Southwest, or Delta?

Exactly.

And where would you rather be a shareholder?

Leave a Reply