Ford expands its lineup of products into mainland China | Fear of repeating the mistakes of CHA strategy

In addition to announcing cooperation with Alibaba, Ford Motor's recent layout movement has also stressed that it will aggressively expand its lineup of electric vehicles, which is expected to launch 50 new vehicles for the mainland market over the next 8 years. Yet a similar CHA strategy, which has left Ford in deep trouble, is now back on the road, worrying about whether Ford will make the same mistake. According to Fubis (Forbes), Ford, in order to save the sales decline, in the continuous introduction of new vehicles, but did not dare to sell poor old car production, accumulated a huge product lineup, and eventually put the company into trouble. 2006 years after Ford chairman Bill Ford took over as CEO of Boeing's Alan Mulally, Ford had 94 kinds of cars worldwide, and finally succeeded in turning Ford into a profit after Mulally's streamlining strategy. Ford is facing a similar challenge on the mainland today, with a cumulative sales of nearly 939,000 units in the 10 months to 2017 years ago, and a 5% per cent less than the same period in 2016, compared with an increase of 3.13 million for rival General Motors (GM). Such a result would not be a good thing for a Ford that was late in the mainland market and was still struggling to catch up. Mulally after taking office, think that only need for each major market block to launch one of the most excellent car can; Earlier, Mulally was also a strategy to streamline its products, allowing Boeing to concentrate its energy and resources on providing its customers with better quality products. Also because the production scale of a single product becomes bigger, the production cost will be reduced naturally. However, since the 2014 Mulally retirement to today, the situation is not the same, in addition to the auto market has become more fragmented than in the past, consumer preferences are increasingly personalized, so not only Ford, Volkswagen also intends to expand the mainland market product lineup. Comments that the product diversification will increase the complexity of production, the negative impact on efficient production, this will not only increase the workload of the Assembly staff, the product may result in more defects, resulting in lower quality, the company will also be due to the 0 component items increased, but the number of items required to reduce the quantity of procurement costs to improve. So again to expand the product lineup, not necessarily a solution to the medicine. Although there are also improvements, such as the production of more cars on the same platform, Ford has also embarked on advanced manufacturing techniques, but it is still unable to completely eliminate the increased complexity and risk of increasing production, and the historical lesson is that Ford is still quite worrisome in its handling of complexity.

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