While the new models will help, they are costing Ford more to produce than its previous lineup, cutting into the bottom line. The domestic automaker is betting on improved quality to increase sales, but it has its work cut out as Japanese rivals such as Toyota and Honda have held the perceived quality limelight for the past decade or so. It will take some time before disenfranchised consumers leave their new imported brand to test the waters with a domestic.
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| Bold and innovative designs, such as Chrysler Group's 300 series sedan are unlike anything available from Japan, and may be the key to gaining ground on Toyota. (Photo: DaimlerChrysler Canada) |
It's time for the domestic brands to deliver bold and innovative designs, such as Chrysler Group with its latest Pacifica crossover, 300 series sedan and Dodge Magnum sport wagon. These models are unlike anything available from Japan, but are priced to compete head on with the much more conservative Toyota Camry and Honda Accord. While they're not likely to unseat these market leaders anytime soon, Chrysler is in a position to capture conquest sales by offering products that stimulate a purchase that targets passion over pragmatism.
But it will be hard for any automaker to put out products that consistently beat Toyota in quality and value. It comes down to money. TMC has more than USD $20 billion in the coffers, significantly deeper pockets to pull research and development money from.