Thursday, Aug. 24, 2006 | 7:54 a.m.
F or much of its history, Ford Motor Co. has enjoyed the prestige of being a giant of U.S. manufacturing, but that reputation has dramatically eroded over time. In recent years the automaker has relied on the success of the Ford F-series pickup truck - the best-selling vehicle in the nation - but this has proved to be a devastating mistake.
The company grew fat and lazy as it feasted on the profits of its trucks and sport utility vehicles. It allowed other product lines to go stale, because the concentration was on larger vehicles. Then car buyers began turning away from gas-guzzlers in favor of smaller cars and hybrids.
Ford fell asleep at the wheel and woke up with a lopsided lineup of big vehicles that drove buyers to more nimble and innovative foreign competitors.
Manufacturers such as Toyota and Honda are thriving and devouring Ford's market share with a diverse array of both fuel-efficient cars and well-made SUVs.
Chief Executive William Clay Ford Jr. seemed to acknowledge the failure in a recent e-mail to employees: "As you know, an unprecedented spike in gasoline prices during the second quarter impacted our product lineup more than that of our competitors, because of the long-standing success of our trucks and SUVs."
Ford's story is almost mythic in the history of U.S. manufacturing. The company over the years has been synonymous with innovation. Its assembly lines shaped U.S. manufacturing. The automaker played an important role in the development of the nation's economy and provided high-paying jobs to armies of workers.
But Ford forgot that successful automakers don't just churn out trucks - they make it their business to foresee every twist and turn in consumer and economic trends.
Ford now has a plan to cut its vehicle production by 21 percent in the fourth quarter, in addition to a broader plan to close 14 plants and cut 30,000 jobs in the next six years. But it will take more than timely trims for Ford to reinvent itself. The company must accelerate an effort to retool its whole product line. If it does not, the future of a once-proud American icon will be in peril.
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