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Ford revamping engineering centers to speed product development

Ford Motor Co. (NYSE: F) has recognized in the last 24 months that it needs to get the kind of vehicles that customers actually want to purchase to market much faster. Foreign competitors have been able to do this for a while now, which is a reason Toyota Motor Co. (NYSE: TM) has moved up the chain to become the global automotive heavyweight to beat these days -- even ahead of General Motors Co. (NYSE: GM).

In that vein, Ford has sold off some of its niche brands, reorganized focus on its core manufacturing and sales finesse and is now taking another step under "fixit" CEO Alan Mulally. The global automaker is reorganizing its design and engineering centers worldwide to speed product development on a global scale. Not only will this help Ford compete more effectively, but let's also hope the company knows -- in advance -- what the majority of customers want to buy in terms of new vehicles. Unless I'm completely wrong, the large SUV won't be at the top of those plans for a long while.

It's been said that the business world of sellers and buyers takes place in a "global village" -- and automakers like Ford are finally realizing that a broader global view makes perfect sense in trying to maintain consistent sales when one market may be down while others are up. It's no secret that U.S. auto sales have been down for a long while -- and the capability of shifting more product mix to non-U.S. markets to deflect slowing sales would seem to have been on Ford's roadmap much sooner than it actually was. Better late than never, though.

Ford's bright spot: Small crossovers

In the first quarter of the year, one of Ford Motor Co.'s (NYSE: F) bright spots was the Ford Edge, a small SUV crossover vehicle with the higher gas mileage of a commuter car but with the looks and utility of a larger vehicle. Crossovers are a hot property as gas prices have risen and all those Ford Expeditions and Chevy Suburbans have become expensive liabilities rather than fun-to-drive hulksters on the road.

Enter the crossover - smaller ones like the Nissan Murano and Ford Edge, and larger ones like the Chrysler Pacifica and Ford Freestyle. These vehicles combine SUV good looks with minivan-like utility (well, to a point) along with decent gas mileage. Ford has hit a home run the with Edge so far, as U.S. and Canadian sales are proving. Even the smaller (and gas efficient) Ford Escape SUV is selling well. Are customers demanding good gas mileage these days? You betcha.

The President and CEO of Ford Canada even said that "outstanding is the word that comes to mind when talking about customer response to the newly re-designed Ford Escape and our hot crossovers." I have to agree with him; Ford's recent financial troubles and its ongoing turnaround are somewhat being overshadowed by the success of the Edge. If Ford can keep up the hot properties, it will make the reinvention of the automaker a much less bumpy rise. In June, Ford Canada saw overall combined sales increase of 0.7%, to 25,485 units. Big increases in the Ford Edge, Lincoln MKZ and the Ford Fusion all were part of the party.

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Last updated: February 13, 2012: 06:41 PM

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