Detroit Three Automakers Are Now Losing Ground In The Crossover Market - How Long Until The Pickup Follows?

If you think about Ford and GM current crossover products not one of them is a class leader for technology or styling. Crossovers are often family cars, so why aren't the base and mid-line models hybridized standard to make them more thrifty for families? At FCA there is a complete lack of crossover product at Chrysler or Dodge and the Jeep crossovers are nothing to rave about.The entire crossover segment is one of abject boredom and mediocrity.

1 - THere is only ONE major American Car company with its major headquarters in Detroit - but even it is incorporated in the State of Delaware - so it is technically not a Detroit company.
2 - Ford is located in Dearborn Michigan - which may be a suburb of Detroit - but is legally NOT Detroit - however Ford is incorporated in Michigan.
3 - FCA is not an American Company - has no CORPORATE headquarters in the USA - Is incorporated in the Netherlands - BUT its headquarters is located in London England for tax purposes. While there are offices of divisions of the company in the USA - no overall Corporate governess is here.

AS long as the chicken tariff remains in effect - the TWO local American companies control of the Pick-UP market in the USA is pretty safe - as it would take BUILDING the competition in the USA to be really competitive. Since RAM is located here - and has a long history of being an american company - it seems Agent 009 fails to realize that they are no longer an American Company.

Both Ford and GM have been SLOWLY attempting to reinvent their Luxury brands - Buick, Cadillac, and Lincoln. AS a result - their current offerings in this market are limited - leaving large gaps for foreign competition to take advantage of. Both Lincoln and Cadillac have plans in the pipeline to address these issues - but it appears that neither include truly superior product completely separate from their entry level stablemates. AS a result - their crossovers - do not offer the performance that other 2nd tier and first tier premiums do - and those sales are lost. A rumor that a crossover based on the OMEGA platform (Cadillac CT6) - would be technically advanced - but do not appear to be forthcoming.

I suspect that FORD - which is reorganizing its product around Crossovers and dropping most AUto production for the USA -is likely to produce competitive product in the future - it has NO other option.

Since the big move to Crossovers is really a recent phenomenon - Both Ford and Gm have been caught in a bind - especially GM - whose company platforms for crossovers are more mass market based - and they will have to move to better production to compete - but it will take time.

I predict Ford will do a merger in the next two years.

that is an interesting prediction, it hasn't been that long since the major divestitures so what makes you think they are looking to acquire beyond their inability to innovate.

As long as the FORD company makes enough money to stay in business as the current 5th largest vehicle manufacturer does now -the FORD FAMILY is not going to relinquish control of the company - which they control only through special stock with more voting power. At some future point - it MIGHT happen - but not during MY lifetime - EXCEPT the possibility exists that they would BUY out another company - which they have done in the past.

Incredibly OBVIOUS merger: Ford + Honda. Both need market insulation and their product lines would work well together. Given that Toyota and Nissan are married to other big manufacturers, Honda needs the same thing and Ford would potentially expand markets for Honda.

AS long as the FORD family controls Ford - and it still does today - they are NOT going to sell FORD or Merge FORD with another company - the idea that they would BUY Honda is a non-starter - they do not have the money and I doubt that it would be available to them. But that is the ONLY way FORD is going to combine with another manufacturer - through a straight CASH purchase - The FORD family is NOT going to give up its control.

Unless something changes for FORD over the next two years where they make a huge profit - Honda is NOT an option - Matt - period.

@TomM The 1950s are over. If Ford wants to stay alive, they will have to be a part of the worldwide consolidation of automotive manufacturing that is most decidedly happening.

The pick-up truck is about as American as apple pie and baseball. While we have Tundras and Titans roaming the earth, they will never threaten the dominance of Ford, Chevy, and Ram.

Even in the mid-size segment, the Americans will continue to rule it.

The Tacoma is about 50K units ahead. Significant? Yes! Worlds ahead? Nope.

TomM: I do not always agree with you but well thought out post today !!!

MD: I usually agree with you but Ford had Volvo Jaq and Land Rover. That did not work out well. Ford had connections with Mazda and I don't know what happened there.

Why would Honda work out ???

Ford called the shots at Volvo, Jaguar, and Land Rover. Those brands were divisions NOT partners. There was no collaboration, just dictation.

Ford sold Jaguar/Land Rover with a pipeline of new models ready to go that the opportunistic Tata has taken credit for. Ford also gave Volvo a reprieve from death and Volvo was is OK shape when they sold to Geely.

As for Mazda, Ford never saw them as equals. Mazda was just an expedient way to get a small pickup in the 70s. Mazda was just a lazy way for Ford to avoid having to engineer small cars.
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That attitude nearly sank the company and Ford isn't in the position to be able to buy someone to dictate to.

In came Mulally who saved the day with One Ford, but after he left, Ford didn't double down on new product. The new products they had weren't new they were hasty Hail Mary moves.

The Fiesta was already on sale when it was "all new" in the USA, but that Fiesta was largely a reskinning of the previous Fiesta.

The Focus similarly was a reskinned and mildly updated Focus II.

All-new successors to BOTH vehicles should have been immediately sent to the drawing boards upon American introduction.

The 2013 Fusion was quite literally the previous Mondeo reskinned, thus a warmed-over old platform.

The Escape was an updated Kuga.

These were all big-gambley efforts and they worked incredibly well.

Mulally has been gone 4 years but Ford didn't invest in new product.

The new Fiesta is the outgoing Fiesta warmed over.

The new Focus is likely the previous car yet again.

Thus, Ford is staring at having a lack of competent product and probably realizes it need to partner.

No one is stupid enough to want to be dictated to, so this would have to be a merger of equals.

Honda being a "family" business is a natural fit for Ford as a "family" business. Honda is well known for its engineering power. Ford needs that. The family-to-family aspect would be the merger of equals.

@JazzyJizz...a merger isn't a buyout. There is a MASSIVE difference between a merger and an acquisition.

First, Honda and Ford quality are strikingly similar.

Second, Ford is in segments that Honda is not in.

I could go on.

With Mazda - FORD needed Money when the Last Crash happened - there is a distinct anomaly in Japanese corporate law that allows a company to take control of another company by Buying less than 40% of the stock - which Ford and GM have taken advantage of - but instead of taking a government loan - which would have required the FORD family to give up control of the company(and likely lose everything) - Ford Mortgaged almost everything including the LOGO - and sold everything not tied down - and part of that was Mazda - even though the Fusion was based on the Mazda 6 platform.

I did not suggest a FORD/HONDA merger (Ford is the Larger company) - and I do not believe it would be in the best interest of FORD. Honda does produce exceptional cars - but FORD deems cars as not selling in the USA - and FORD already has the largest selling group of Crossovers - and Trucks. I suppose it would help Honda - but the FORD family is not going to give up control of the company - period.

Let's see...what cutting edge cars does Mazda build? NONE! What cutting edge technology does Mazda have? NONE! All Skyactive means is that their cars pass emissions. Mazda is in decline and already gripped by Toyota.

At first I thought the Ford-Honda tie-up was not in Honda's favor. But, MD is onto something. This would especially make sense globally.

Also, MD, agree with your comment that the Big 2 and FCA are in the mass market business crossover business. This is perhaps the biggest disappointment with the new Cadillac CT4. It goes right into mid-pack. Contrast this with Acura's new RDX which is well engineered with some interesting technology and it sales are booming. The Lincoln mid-sized crossover (MKC,MKX ??) is nice but priced where one can buy a Q5 or GLC. Time to step up Detroit and Dearborn.

A Ford tie up with Honda would probably be a great benefit. Would the Mustang go FWD or AWD on an old Accord Coupe chassis? However I find it hard to believe that the Ford Family want to relinquish control. Any tie up would be with Ford in ultimate control. Not so sure Honda would go for that. Perhaps it would be a 50/50 deal or more likely an agreement to share technology and platforms.