“First and foremost, I need to
protect Ford and all it stands for.
I have a responsibility to every one
of the 2,800 employees in that
facility.”
Changes at the top often signal a
change in market strategy. Was that
the case here?
No, not really. David (Mondragon)
and the whole team enjoyed success
in rebuilding the brand and customer
perception after events in 2007 and
2008. We all believe that we are on
the right path. Our priorities remain
unchanged. We want to continue to
grow this business. We have a vision to
be the most trusted and most admired
automotive manufacturer in Canada.
That’s our vision, and that hasn’t
changed.
We spoke of differences between the
countries; what, for you, stands out as
key differentiation factors?
Canadians tend to buy smaller, lessexpensive models. And we absolutely
prefer hatchback models that Americans
typically avoid. However, I’m also
concerned, if that’s the right word, that
Canada appears to be willing to embrace
the U.S.-style of longer-term financing.
Consumers are often going into
84-month—even 96 month contracts,
and we don’t think that’s in the best
interest of the customer. We would much
rather get our customers into shorter
terms—regardless of whether buying or
financing in some way.
OK, so you do not think that longer
terms are truly advantageous to your
customers. We have asked this next
question of other Canadian automotive
executives; is there any likelihood of
the automotive industry inadvertently
contributing to another sub-prime-like
economic meltdown?
This “creep” on terms is worrisome.
Some 40% of consumers are
committing to longer time frames. Less
than 10% of our current customers
embrace six, seven—even eight year
terms. While our dealer network does
offer them, we do so due to competition.
However, we like to make every effort
to educate our customers; they need
to know the implications of accepting
long-term deals. We try to make our
12
THE DRIVER
automobilebuying public
understand
and be aware.
Remember, at
this point, even
though some
manufacturers
have been offering these deals for a
lot longer than Ford, no-one has yet
seen the economic impact of those
arrangements. At the end of the day, we
must do right by our customers. Should
buying a car be similar to financing a
house? We don’t think so.
So you want to avoid leasing situations
where a customer may actually owe
more at the end of a lease term than
that vehicle is worth?
Exactly. No one benefits. No one. Our
business plan calls for profitable growth.
Our customer must come first—always.
Let’s go back a year or two. What was
the very first vehicle you ever drove?
Gosh… I would have been around 15
and it was a… a Grand Marquis Station
Wagon which I drove on my parent’s
farm.
(Laughing) Seriously, a Ford product
even back then?
Yeah… we seemed to like Fords. In
fact the very first car I owned was an
Escort! No air conditioning, manual
transmission—pretty much a basic car.
But man, it was mine! A great car. A
world car!
And today?
In our driveway we have a Ford Flex and
a Lincoln MKZ. Love the Flex!
Coincidentally, built in the Oakville
plant…
But you know, it’s a great vehicle—
practical for a family—and, in my
opinion, looks great.
If you could drive anything, what would
it be? What’s your aspirational vehicle?
Honestly? Well, I love the Edge. And a
Mustang? This year will see that great
car celebrating its 50th anniversary.
Who doesn’t love a Mustang? It has
been so many cars to so many people.
The anniversary editions will bring it
back to its sports car days—you watch!
How about the Thunderbird? I loved the
look of the last design—around 2005…
So your passion and loyalty for Ford
and Lincoln is patently obvious. Let’s
talk about protecting your marque and
your brands. Let’s discuss taxes and
subsidies.
Of course. At our state-of-the-art
facility in Oakville, we look for
partnerships. Without them, Ford
here in Canada would have difficulty
competing. First and foremost, I need
to protect Ford and all it stands for. I
have a responsibility to every one of
the 2,800 employees in that faci