It could be Ford's ticket to becoming the world's No. 1 automaker.
Once the DaimlerChrysler venture was announced, the auto industry began speculating about what companies would be next. One thing that really fueled the conversations was Ford Chairman Alex Trotman's prediction that there would be only five or six major companies left in the world in a few short years.
So it seems fitting to speculate about a partner for Ford. Honda is the first company that comes to my mind. It offers many things Ford will need in the future, from more efficient manufacturing to stronger engineering and environmental technology. Plus, this Japanese company has a strong base in the Asia Pacific region, where Ford wants to grow. Sure, Ford will probably buy all of Mazda soon, but Mazda isn't a big enough company to quickly boost the world's No. 2 automaker's presence in the Asia
Honda is also a premier engine maker. That couldn't hurt Ford, which just bought Cosworth to add to its racing engine expertise. Adding Honda's vast knowledge would be a boon. Plus, Honda also makes turbofan engines and has developed a small six-passenger jet plane. Recently-retired President Nobuhiko Kawamoto had dreams of someday building small planes to sell in the future. That's long-term strategy, but it matches the way Ford President Jac Nasser and incoming Chairman Bill Ford Jr. think. They're already planning where Ford should be in 30 or 40 years.
"We should not define ourselves as a car and truck maker, but as personal transportation providers," Ford says.
Efficient manufacturing is also a Honda strength. The latest numbers in The Harbour Report rank Ford and Honda plants among the top 10 in the U.S. Put those two together and you've got some mighty potent manufacturing power.
Ford and Honda are on the same page when it comes to the environment. Trotman's successor, Bill Ford is one of the industry's leading environmentalists. Honda's strategy is the same. Kawamoto was so committed to the environment that he pushed Honda to develop more and more "clean" engine technology. Add that to Ford's commitment to make his company the cleanest automaker in the world and you've got a promising future.
Culture would not be a huge problem. Honda is perhaps the least Japanese of the Japanese makers, and has only recently begun to enjoy status in Japan where Toyota reigns supreme. Its executives seem willing to try something new and are open to new ideas and ways of doing business.
For Honda's part, it is too small to make the cut long-term as one of the surviving major global automakers, but it is too big to be a niche maker. As time goes on it may have little choice but to link up with another automaker. Ford is a good fit.
OK, there are a couple of catches.
Many of the products would overlap. So what? Ford and Honda could benefit from that by using common components but still selling vehicles through their own distribution systems. Done right, reliability and efficiency should soar, adding to the bottom line and sales volume.
Plus, both Ford and Honda have strong family ties and it is likely neither family would be willing to give up their company. But it is doable. Ford could buy Honda outright but keep the strong name and somewhat independent management, as it has done with Jaguar and Aston Martin. Those companies have kept their images, and added to Ford's. Honda could do the same. Mind you, this acquisition is simply an idea. I certainly wouldn't expect it to happen tomorrow. But if you look closely, it could be Ford's ticket to becoming the No. 1 automaker in the world.
[Author Affiliation]
Marjorie Sorge is the editor-in-chief of Automotive Industries. You can reach her via e-mail at: msorge@chilton.net.
Why Ford, Honda should get togetherIt could be Ford's ticket to becoming the world's No. 1 automaker.
Once the DaimlerChrysler venture was announced, the auto industry began speculating about what companies would be next. One thing that really fueled the conversations was Ford Chairman Alex Trotman's prediction that there would be only five or six major companies left in the world in a few short years.
So it seems fitting to speculate about a partner for Ford. Honda is the first company that comes to my mind. It offers many things Ford will need in the future, from more efficient manufacturing to stronger engineering and environmental technology. Plus, this Japanese company has a strong base in the Asia …
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