DETROIT, MICHIGAN—You’re looking at the future of the Ford Motor Company. Sure, petrolheads will flock to the awesome GT and the menacing F-150 Raptor, but, the biggest news out of the North American International Auto Show is the introduction of an all-new Ford Motor Company.
Ford’s in-house futurist, Sheryl Connelly, says that Ford is evolving from being just an automaker to being an automaker, mobility provider, and tech company all rolled into one. With a job that looks at non-automotive trends that can influence Ford in the future, Connelly says that the aging global population and need to personalize services play a huge role in the corporate transformation. For instance, this is one of the reasons why Ford has invested heavily in developing self-driving vehicles.
Now testing on Michigan roads and in conditions as harsh as snow, the company hopes to one day roll out their version of self-driving cars to make everyone, especially the elderly, more mobile. And if you think acceptance of this technology is prevalent only in developed countries such as the United States and Japan, Connelly says that countries with high urban traffic environments like China and India see acceptance for autonomous vehicles as well.
Of course, the change doesn’t just happen in the way cars are being driven. Connelly’s words echo Ford president and CEO Mark Fields who didn’t refer to Ford as a car company, but as a mobility company: “We are driving innovation in every part of our business to be both a product and mobility company—and, ultimately, to change the way the world moves just as our founder Henry Ford did 111 years ago.”
Building on a strong line-up of cars, SUVs, trucks, and electrified vehicles, Ford isn’t simply making lives better by bringing the world on wheels. Today, they’re taking things a step further and they’re disrupting themselves from being just a car company. Fields looks at this shift as a means for the company to stay strong. He brought up Nokia, the mobile phone giant that’s all but gone now.
Ford is reimagining the relationship between automaker and consumer through new products such as FordPass. FordPass aims to do for car owners what Apple and iTunes did for music fans.
On the surface, the introduction of allied services such as FordPass sound like a distraction. In fact, you don’t have to look far into Ford’s own corporate history to see that it dabbled in the auto services business such as car rentals causing the Blue Oval to almost collapse. However, things are different now.
Fields says the traditional auto industry is worth US$ 2.3 trillion, and Ford has around a six percent share of that. However, the related auto services industry is worth US$ 5.4 trillion and Ford, like all other automakers, have no share in that. To stay strong, Ford has to have a two-pronged approach: sell cars that people buy and provide an unparalleled customer experience. It all makes perfect business sense.
It sounds like a lofty goal, but it is possible. With the platform launching in April, FordPass is a free service open to Ford owners and non-owners alike. It incorporates several features including a 24/7 concierge service that helps people solve challenges, whether it’s reserving for parking or finding a more efficient way to get around, be it by car or public transportation. The app also helps users pay using a virtual wallet or even offer perks in certain establishments.
The FordPass platform also helps the company tap new markets, who’re normally wooed by automakers just one year before a car purchase. Elena Ford, Ford Vice-President for Global Dealer and Consumer Experience reveals: “We’re engaging our customers—and our potential customers—aiming to make every interaction with the Ford brand a positive experience. We want our consumers to know how much we appreciate them and we’re taking loyalty a step further.”
Hand in hand with FordPass is a new consumer experience called FordHubs. They are urban storefronts located in areas such as New York, San Francisco, London, and Shanghai. These stores aren’t simply a place where one can buy a new Ford car or merchandise, but will be places where Ford can offer guests personalized mobility options and talk to experts. Sounds pretty much like Apple, doesn’t it?
Ford’s move from a traditional carmaker to a mobility company does raise some eyebrows. You’re probably thinking: what about the cars? Will they be as dull to drive as an appliance on wheels? A decade back, Ford focused on the environment, reducing emissions and improving its corporate mileage. And that brought out technology such as EcoBoost and the use of high-tech materials such as military-grade aluminum. Fields says that culturally, Ford’s move towards an environmental approach took some time. It didn’t initially sit well with people who looked at large SUVs and big placement engines as a solution for everything. Today, the shift towards becoming a mobility company is widely accepted by everyone at Ford Motor Company. Technologies such as SYNC, Active Park Assist, and now self-driving cars, Ford Pass, and Ford Hubs are all integral parts of this strategy. A strategy the company calls Smart Mobility. It’s a corporate vision that changes the way the world moves. It has five pillars: connectivity, mobility, autonomous vehicles, the customer experience, and big data.
Ford Motor Company is reorienting itself, looking straight into the future to stay strong. As a result, they’re taking a holistic approach to the way it does business. Ford sees logic and reason to dabble in both products and services, pointing out that companies like Apple has done so with great results. Fields isn’t passing himself as the automotive equivalent of Steve Jobs, but understanding that the industry is in a cusp; he’s readying his company for change. Ford looks ready for the future. The question is, are you?