Ford & GM – eternal competition

Ford Motor (F) Is Almost Tied With General Motors (GM) In US Auto Sales; It Has Only Beat GM Four Times In The Past Two Decades – International Business Times

Sales race: GM reigns but Ford gains – Automotive News

2 biggest american automobiles producers, Ford Motor Company and General Motors Company, are competing on cars market for almost a century. In recent years, GM has always been bigger and had higher sales than Ford. Since 1991, Ford has outsold GM only 3 times.

Now, the gap in sales of 2 companies has narrowed to 25,000 units (in 2007, it was 105,000 units). In this post, I would like to present my vision of reasons of success of Ford in last 5 years and of failure of GM.

Specialists affirm, that main reason of success of Ford lies in its new line of models: Focus, Fiesta, Fusion and Escape. By creating those models, Ford has adapted to changing tastes of its customers. New models are smaller, have smaller engines, which consume less fuel and are more environment-friendly. Growing prices for fuel and change in consumers’s view on cars have brought success to those models. People are not looking for a big car with a powerful engine anymore, they prefer smaller cars that would be easier to park and that would save their money by having lower fuel consumption. GM is still living in age of dinosaurs, that’s why it’s suffering from a decrease in sales.

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