Ford Decides Paying for Ads Is Stupid
Ford CEO Jim Farley has said he sees little reason for the automaker to bother using traditional advertising campaigns for electric vehicles. Considering how often I see the Ford logo grace whatever screen I happen to be peering into, this would seem to go against everything I’ve been conditioned to accept. However the company believes its EVs practically sell themselves already, with the executive noting that the Mach-E has been sold out for quite some time.
“I’m not convinced we need public advertising for [electric vehicles] if we do our job,” Farley said during Wednesday’s Bernstein Strategic Decisions Conference.
First reported by Bloomberg, Blue Oval has opted to copy Tesla’s playbook and forego traditional advertising. Farley himself noted that the EV brand saves itself a bundle by circumventing the dealership model (something a lot of legacy manufacturers are now trying in Europe). Ford figures it can help offset some of the $50 billion it plans on spending to develop EVs through 2026 by scaling back its marketing efforts.
The CEO also noted that he envisions the Detroit automaker tweaking its relationship with dealerships in the U.S. to focus on service after the sale. This likewise apes the Tesla model and is broadly in line with some of the sweeping changes the industry is now considering we outlined in a recent article. But the abridged version is that there will be consolidation/vertical integration — and plenty of it.
“Our dealers can do it, but the standards will be brutal,” Farley said. “Their business will change a lot and there will be a lot of winners and losers and, I believe, consolidation.”
From Bloomberg:
Ford is one of the nation’s biggest advertisers, spending $3.1 billion last year promoting its products. But Farley wants to emulate Tesla Inc., which controls the US market for EVs despite not buying traditional advertising. He said Ford hasn’t needed to advertise its new F-150 Lightning plug-in pickup and that it stopped promoting its electric Mustang Mach-E because “it’s sold out for two years.”
“We spend $500 to $600 per vehicle on public advertising. Get rid of all of it,” Farley said. “If you ever see Ford Motor Co. doing a Super Bowl ad on our electric vehicles, sell the stock.”
There are a few ways of looking at this. You can either see Ford noticing that Tesla doesn’t have a marketing budget and manages to trade well due to its hype on social media and the press spending the last few years talking about nothing else, you can suppose it doesn’t make sense to spend money advertising vehicles that aren’t currently available, or you can view this as a retreat from the EV space.
I can’t quite put my finger on it but something tells me that many legacy automakers haven’t been as committed to EVs as originally claimed. The industry has been spending billions on “mobility projects” that have helped get EVs to market. But I would hazard a guess that a large portion of that money went toward building data centers, advancing vehicular connectivity, and purchasing ancillary tech firms manufacturers assumed would explode in value or head the next great breakthrough in self-driving cars. Autonomous vehicles have been promised to us since Firebird II was filmed cruising down a fly-by-wire highway in 1956. But any practical application has always been “a few years away.” Even today, the technology seems a little too finicky to be reliable and the legal implications are so vast that it would probably take lawyers years just to agree upon who is ultimately to blame when something does go wrong.
But this didn’t stop automakers from marketing these technologies before they existed. Nor has it prevented them to promote some of the advanced driving aid systems that emerged as a direct result of the research.
Electric cars have had a better track record overall and were even commonplace as urban runabouts in the early days of the automobile. They’re tangible and can be bought today from an array of brands. But they’ve also cost the industry a lot of money and will continue to because that’s the nature of development. Ford presumably understands this better than anyone and has elected to hedge its bets while it doesn’t yet have the manufacturing capability to flood the United States with EVs.
Viewed from this angle, a lofty advertising budget dedicated to all-electric vehicles seems like a bit of a boondoggle.
Despite EVs having made some serious headway in specific markets, often with the aid of government mandates, the United States is typically at the bottom of the list. Meanwhile, the world is beginning to confront a situation where sourcing the materials necessary for battery production is assumed to get substantially more difficult and expensive. I’m assuming Ford simply sees no upside to marketing EVs until it has another one on offer and simply wanted to make a big deal out of the issue to draw some Tesla-like media coverage for itself. Successfully, I might add.
[Image: Ford Motor Co.]
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We reached a conclusion to the first Ford Festiva (or Kia Pride, Mazda 121, SAIPA, etc.) in our last installment, which saw the little hatchback finalize its Ford duties in 1993 and its Kia responsibilities in 2000. And while it continues life today as a Wallyscar in Tunisia, our coverage here moves on to Ford’s not-so-anticipated follow-up entry to Festiva, another Festiva! It’s an Aspire to you.
Ford wanted to save as much cash as possible, so it used the existing Festiva platform as a starting point. Affixed to the ’86 chassis was a more modern-looking body, which wore European-type influences instead of Eighties Japanese econobox cues. First to go was the flat front end with its squared-off bumper, rectangular lamps, and dated tape stripe appliques.
The A-pillar was more relaxed on the second-gen Festiva, which gave the whole hatchback a more aerodynamic shape. Down the side, a smooth fender picked up a firm character line that carried on through the doors and to the rear, as before. The secondary character line under the side windows of the Festiva was softened considerably for the second generation. Simple black dogleg door handles ported over directly to the new car.
The tailgate was shaped around the new rear lamps, which were larger and more rounded than before. Rear lenses took a horizontal orientation over vertical, and wrapped softly around the rear fender. Below, the new Fiesta’s bumper stuck out further than before and no longer contained a small cut-out for the exhaust.
Inside, the Festiva attempted to look more modern on a tight budget. The Mazda gauges, steering wheel, and other components were replaced by parts from Kia. The same basic economy layout was maintained but was softened in keeping with Ford’s styling of the day. To save costs on door panels, models with power windows had their switches placed in the center of the dash above the HVAC. Vents were of course rounded, but in the exact same location as on the old Festiva. Taken as a whole, the new Festiva’s interior looked a lot like an additional layer of rounded plastic was placed directly over the old design.
Width increased notably on the new car, from 63.2 inches to 65.7″. Hatchback versions of the new Festiva lost a bit of height, 56.7 inches over the old car’s 57.5″ given their faster roof design. But the sedan was taller than before with its square roof, at 57.9 inches. As expected, a modernized and larger car weighed more: Festiva’s weight of 1,540 to 1,720 pounds ballooned to between 1,810 and 2,070 in the new car.
When it put the new Festiva on sale in 1994, the new hatchback maintained its identity in most markets. North America was an exception, where Ford wanted to distance itself from an unsuccessful product. The name switched to Aspire, and Ford was sure the new car would be a quick sell. Aspire was offered in three- and five-door variants; the sedan was off-limits.
The Festiva remained unchanged for its first three years but received a visual refresh for model year 1997. The revisions were mostly limited to the front clip, where Festiva adopted a rounded front end that was more compliant with Ford’s Nineties corporate look. Rounded headlamps blended into clear indicator lenses to form a continuous oval. The oval theme was repeated on the grille, where the Blue Oval sat inside a body-colored oval, within the larger oval grille opening. That’s oval to the third power!
It was the first generation Mazda Demio (1996-2002). The cute, tall hatchback was closer to the idea of the original Festiva and was marketed as the Ford Festiva Mini Wagon. It sold through Ford’s Autorama dealership for Japanese customers who didn’t want their hatchback badged as a Mazda, for whatever reason.