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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: KobaltBlauw who wrote (95463)7/7/2008 1:22:40 AM
From: TH  Read Replies (1) of 110194
 
Kobalt,

You make a very excellent point. Actually, it is several points if you know a little about Ford.

First, for many years Ford North America didn't give a damn what Ford Europe was doing. So, Ford Europe and Ford North America are two different companies with the same ownership. That is finally changing, but a number of attempts to build <world cars> never really delivered on the promise.

Second, retooling is not the only issue. North American specs, and Ford North America in particular, are much more demanding that Europe specs and many more times demanding than the specs out of China (if you can find them, hehe). So, unless a car is designed for export from Ford Europe, there is a very good chance that it may not meet the specific requirements of Ford North America spec or comply precisely with Federal Motor Vehicle Safety Standards (FMVSS). This does not mean that European cars are any less safe, but rather the specific requirements as measured and approved by FMVSS may not be met for every European model. This was more true ten years ago, but it can still be an issue. At my last position I spent a lot of time making sure that all my major components could meet European homologation requirements (and also spending a lot of dough making right hand drive versions that we usually lost money on).

Third, retooling European production for America sounds great, but in practice it has not worked out so well. I know of a major European auto company that had a goal to retool 200 million of parts to the USA and then build in the States and export back to Europe. After a year and half they are off target by 200 MILLION!.

Your idea is good and it is happening, but in most cases for advance models, say 012 and beyond.

GT
TH

PS, there is a very specific reason why Ford USA specs are so difficult. If the thread is interested, I'll give you my take. And it has less to do with <quality> that you would think.
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