Ford – Wild horses

Mustang Mach-E is a ray of hope.

• Ford may be mistaken about what electric and autonomous vehicles will do to demand for its products (see here), but the Mustang Mach-E gives me some hope that it is at last getting to grips with the some of the most serious challenges that it faces.
• Ford has launched its first proper attempt to take on Tesla with the launch of the Mustang Mach-E which takes some risks with the Mustang brand but is a completely new platform with a digital offering to match.
• Mustang is a muscle car brand that was built on petrol engines and so the purists are screaming blue murder.
• However, electric cars offer super-car performance at a fraction of the price and so I think that the use of the Mustang brand is an excellent idea.
• The Mustang Mach-E is a new platform redesigned from scratch and not an adaption of a legacy platform.
• This has given Ford the opportunity to fully integrate digital into the platform meaning that this car is completely data-capable and is in a position to offer digital services.
• Furthermore, Ford has made a great effort in its user experience design to ensure that the smartphone remains in the user’s pocket and is not used as a replacement for the infotainment unit.
• This is the single greatest threat to OEM long-term viability in my opinion as OEMs need digital services to offset the fall in income that will occur when vehicle demand starts to fall.
• The vehicle has a large 15.5” screen with a large knob embedded in the display at the bottom and takes a leaf out of Jaguar Landover’s book.
• The beauty of this is that this knob can be used for anything depending on what the user needs to adjust at any point in time.
• Android Auto and CarPlay are present and will work simultaneously to the embedded user experience.
• This should have the effect of keeping engagement focused on the infotainment unit even when Digital Life services on the smartphone are being used.
• This is the essential challenge that all OEMs must get over because if there is no engagement with their digital systems the opportunity to offer digital services will disappear.
• The demonstration of the experience was impressive with the large screen being used to bring more functionality to the home screen such that hierarchical menus are reduced evidenced by the fact that there is no need for a home or a back button.
• This is a user experience that has been designed for use in the vehicle and the grid of icons that works so well on the smartphone but is poor in a vehicle has been completely replaced.
• It is worth bearing in mind that this was only a demonstration and it is clear that the software is very far from being ready.
• This was evidenced by the fact that on the floor of the LA auto show, the user experience bears no resemblance at all to what was shown at the launch.
• Ford has also made the vehicle software fully updateable over the air which is another big step forward.
• This will not include the critical motor and safety systems yet but ensures that software and service innovation can continue after the vehicle has been sold.
• Ford is making an effort to get to know its users and to build a deeper relationship with them over time rather than the ship and forget mentality that exists for most OEMs today.
• This is also essential if Ford wishes to sell its own digital services as well as those of 3^rd parties to its users post-sale.
• The net result is that this launch gives me some hope that Ford has taken on board the seriousness of the challenges that it is facing in the digital arena with the Mustang Mach-E representing a good first effort at dealing with them.
• This will open the door for Ford to monetise the consumption of services in the vehicle as they emerge.
• RFM forecasts that this will go a long way towards mitigating the potential 60% decline in vehicle shipments that could occur as a result of the migration to electric and then autonomous vehicles.
• There is some light at the end of the tunnel.