The Detroit automaker is suffering heavy losses

It’s no secret that some of the largest automobile makers in North America are feeling the pressure from their Japanese rivals. As companies like Ford and General Motors watch their market share dwindle, one would think that an offensive strategy would be in the works. Ford, though, seems more confused than competitive at the moment.

After suffering losses of over $1.5 billion in 2005 and more than $1 billion already this year, CEO Bill Ford seems caught between making excuses and trying to create a plan to save the company. He told the New York Times earlier this year,

Ford has also announced its current restructuring plan, the second in less than five years, which seems vague and lacking direction. Thirty thousand jobs being nixed by way of fourteen plant closures ought to give way to some profitability by 2008. But what about specific cost-cutting targets, or clearly-defined sales goals, or even market-share growth plans? Those don’t exist just yet.

Then there’s the compact car market, where Toyota, Honda, and Nissan have made very attractive advancements. Ford has all but forgotten about its own Focus, which will receive only small changes for the upcoming year.

Although the Ford F-150 has been America’s best-selling vehicle for all of recent history, the pressure is on from newly-designed competitors like Chevy, GMC, and Toyota with their Silverado, Sierra, and Tundra, respectively. Contrary to Ford’s closing of factory plants, Toyota plants to skyrocket sales of its Tundra with its newly-opened plant in Texas.

And who can forget fuel-efficiency? The highly-efficient Ranger has been neglected for the upcoming year as well. Ford has also backed off of its goal for the number of hybrids it plans to bring to the market in the next four years. With gas prices predicted to continue rising, and with an increasingly fuel-economy-minded consumer base, these decisions don’t seem to be in the interest of increasing sales.

But there is a sparkle of sunlight on the horizon, and it’s the Edge. It is Ford’s impressive new entry into the crossover market. With attractive lines, sporty 18-inch alloys by default, and a class-leading standard six-speed automatic tranny, the Edge shows a lot of promise.

Ford may be down, but they’re far from out. However, if they expect the tides to turn any time soon, they need a little more than one hot new Edge and extended factory warranties across the board to draw the consumers back their way.

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