Ford (NYSE: F) has come up with another way to waste product development and manufacturing resources. It is building self parking cars. In a period when auto companies are being beaten up for wasting money, it is also an odd PR move.
According to The Wall Street Journal, "The automatic parallel-parking system will be shown next month at the North American International Auto Show in Detroit, and will be offered as an option on the Lincoln MKS sedan and MKT crossover-utility vehicle." Although Ford has not said what the option will cost, it could be close to $1,000.
Parallel-parking is one of the first things that sixteen-year-olds learn when they go to drivers education classes. It is not terribly difficult to do. Anyone who tries to squeeze a car into a space that is too small gets what he deserves.
The car industry has gone "gadget mad," which has hurt both profits and customer relations. One example is building in computers that have one hundred features which almost no one uses. This adds expense to development and drives up the price of the end product.
What happened to a simple car -- simple to produce and simple for the customer to use? A simple car will also probably be much more profitable in the long run.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
12-30-2008 @ 9:09AM
Della Patton said...
While it's very true that 'simple' cars would be cheaper to produce and sell, everything nowadays is highly technical. We have digital this and electronic that which sell like hotcakes. Who can blame the car companies for producing what we all seem to want?
12-30-2008 @ 1:29PM
Jonathan said...
I don't think you've made the case that gadgets are hurting the automakers. Gadgets are typically priced at a very high premium over their costs while a basic stripped-down car is far less profitable. I don't see how chasing higher profits is necessarily bad for a business.
12-30-2008 @ 10:29AM
James Mullenaux said...
I, for one, am making a cognizant effort to ignore the "Jones'".
12-30-2008 @ 11:52AM
t galloway said...
This is written as if Ford was the first one to do this...not. I agree with the first post. They are going to have to do something that distances themselves from the pack. American cars have almost cleared the reliablity hurdle that haunted them for decades. I have driven both foreign and domestic...domestics have made great strides...now just figure out how to sell them. Design and features will be the key.
1-06-2009 @ 8:42PM
ron said...
Remember when the American car companies and their enablers in congress refused to raise CAFE standards, crying the whole time how it would add $1000 to the price of a car and would cost the industry billions upon billions of dollars and would possibly bankrupt them?
Remember that?
12-30-2008 @ 1:29PM
Darrell said...
I'd love a car with no electronic gimmicks at all. The "seat belt not fastened" warning never shuts up, but they never remind me I've left my lights on. And you almost have to pull the engine to replace spark plugs.
12-30-2008 @ 12:43PM
Jim said...
Just spent $230 (including towing) for a tie-rod end on my 2000 Expedition. Being in the auto-service biz for over 30 years now, 61,000 miles is wayyyyyy too early for this part to wear out/fail. A twenty-five cent grease zerk installed @ production and this would not have been a problem (I baby and maintain my equipment). I got over a half-million (combined) miles on the last 2 cars (1980 Nissan 280ZX and 1987 Ford T-Bird Turbo) with NO significant failures!
This is my 2nd, and my last expensive SUV from Ford - dealer wasn't interested in helping me with "shoulda-been-covered" failures earlier. Me & Ol' Henry's gonna hafta call it quits - at least 'til the United Auto Whiners are gone.
"Let's make a Ford & a Chevy, that still lasts 10 years, like they should" (Merle).
12-30-2008 @ 1:09PM
Scott Monty said...
This is part of a larger suite of technology that shows Ford's continued commitment to innovation. We use our technological expertise to apply solutions across as many of our vehicles as possible, so the technology is available to millions of people.
In this case, since we already have sensors in the vehicles and electric power steering (a fuel saver) available, it was simple to create the Active Park Assist feature by marrying the two.
We don't develop technology without consumer input; in high-end luxury cars, we know that people want additional features. More than a gee-whiz factor, this is an addition that many will benefit from.
When you consider that our commitment to technology has impacts beyond gadgets - that we can improve fuel economy as a result - it's a more holistic view of our innovation. For example, with electronic power steering, not only will mileage be better, but there's no hydraulic fluid required - an environmentally friendly move. And our EcoBoost engine, which creates fuel efficiency in V6 engines while giving the power & performance of V8s, will be applied across the majority of Ford vehicles in the next few years.
These are but a few examples of what we're currently doing. For more information, you can see our technology page at http://ford.digitalsnippets.com/technology or check out The Ford Story at http://thefordstory.com
Scott Monty
Global Digital Communications
Ford Motor Company
12-30-2008 @ 1:15PM
Tim said...
Pretty doesn't pay the rent. Shiny, tricked out SUV's are a financial loss from day one. Detroit loves stupid people paying $600 bucks a month for some crappy circus on wheels. It's a friggin tool for transportation, nothing more. By the best return on your money, typically a Honda that last over 300,000 miles, not a GM car that falls apart at 80,000 and still has payments due.
12-30-2008 @ 2:31PM
AndrewC said...
Do not try to twist this into another reason why Ford is failing because of bad managment and does not need a bailout. Not that I disagree with that, but the parallel parking feature doesn't strengthen that argument.
Lexus developed this feature for their cars a few years back (I know the LS460 has it) and they got praise for their technological advances. Now Ford is criticized for many things, but two of those are quality and luxury- two things Lexus excels at. Ford has been trying to address this for many years- creating new plants that are more efficient and produce higher quality products is one of them, and this has been sucessful. They also try to develop high tech products for their luxury cars. Yes, this drives prices up, but thats the point isn't it. Ford, as well as every other car company, wants you be compelled to buy their luxury car despite its higher price tag.
Parallel parking assist isn't any different than rain-sensing windshield wipers that the german cars offer, or the computer that measures your G-forces found in some "rally" cars, so why don't we complain about those things? Fact is, all carmakers try their hand at some unnecessary, high tech gadgets in hopes of bringing in buyers. Sometimes they work and become popular. Other times they are ignored and canned (4 wheel steering in GM trucks or Mitsubishi 3000GT). Its not just the less successful car companies either- currently Lexus and BMW have headlights that turn with the steering wheel, for that odd time when you are driving at high speeds on windy roads with no streetlights. BMW also has a form of infrared night vision, something that Cadillac introduced several years ago and then dropped.
What I'm getting at is this: gimicky gadgets are produced by everybody, and some bring sales, and others don't. Ford is trying to keep up with the Jones by introducing theres. It is not a sign of mismanagement to attempt to create cars that people want, and luxury car owners want gadgets.
12-30-2008 @ 3:26PM
dgolfer said...
Mr. Monty, thank you for your excellent post. Douglas hates American cars and can't stand the good news coming out about Ford cars, like the new Fusion and also the 2009 F150 winning truck of the year. Although Toyota came out first with this auto-park, Ford's technology is way better. You better get used to Doug, you aint seen nothing yet.
12-30-2008 @ 8:52PM
Scott T said...
Ford quality is good. As one of the big 3 that has continued to channel scarce cash into product development, how do you bash it for combining two options (electric steering, cross-traffic alert sensors) into a third great option. This was probably a software thing that did not cost that much in investment to create/combine.
This guy Doug probably broke his ankle jumping on the Lexus parallel park bandwagon.
I've owned Toyotas (01 Camry), Fords (04 Focus, 96 F150, 05 Explorer), and Jeeps (94 Wrangler). I (by far) prefer the Fords.
12-30-2008 @ 6:08PM
Jobu37 said...
Dougy's back. He hasn't bashed Ford in weeks but now he makes a lame attempt to criticize them for attempting to improve profit margins by adding an option that will most likely have a 1,000% markup and still be within reach of most luxury customers.
You have to forgive him for picking such a petty thing to criticize. Afterall he can't pick on Ford for any of the following anymore and in many cases never should have:
Quality and reliability - Ford has outpaced the industry for the past three years in their level of improvement. To the point that they are statistically even with Toyota and Honda. Next survey may be the one that puts them on top.
Fuel Efficiency - With the introduction of the new Fusion in a month+ Ford will be the fuel efficiency leader in the following categories.
Small SUV - Escape (non-hybrid version)
Mid-size sedan - Fusion (non-hybrid version)
Full size pickup - F150
Full size sedan - Taurus
Subcompact - Focus within a couple miles to Cobalt XFE
Mid-size CUV (three rows) - Flex
Future leaders Fiesta and new Focus.
Safety
Ford has more 5-star rated vehicles than any other manufacturer in the world.
So with all this good data Dougy has to go grasping at straws to find something to complain about. So now it is the lack of a need for a parallel parking system. I agree it isn't needed but if Doug doesn't see a problem with Lexus gouging their customers with an inferior system as it turns out then may it should be ok for Ford to get a little extra green.
Next blog will be him complaining about how quiet the interiors are in all of Ford's new offerings. They just happen to be best in class in more segments on that front as well.
Safest, most reliable, quietest and more economically priced than any of the import competition but in Dougy's world this doesn't equate to good product or a good company.
Doug your argument fails. Go back to the straw bin and pull something else out.
12-31-2008 @ 10:48AM
Adrian Clark said...
What a jerk this Douglas McIntyre is (The guy that wrote the article), When Lexas introduced this self parking feature all these 'bright analysts' said WOW this is great! but when an American Car company does it it receives criticism.
Grow up Mr McIntyre and try driving one of the new Ford or GM vehicles.