Will globalization help Ford manage inventory?

So here we go again – car inventory at Ford is growing, specifically, new Focuses and Fiestas. WSJ reported on this recently and so did my colleagues at Kellogg. The graph of inventory is indeed telling, so I’ll repost it here.

We know what such inventory stockpiles usually leads to – lower prices. This time, though, it can be different.

In the past Ford had different model line-up for the US and overseas markets – so it could not export excess inventory from the US factories. Now, the US models of Focus and Fiesta are exactly the same as for the rest of the world. This is a part of Ford’s Global DNA strategy. Moreover, these small economical cars are pretty popular in frugal Europe. Would we see increased exports? This certainly would be a nice demonstration of demand pooling at work.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s