It is difficult to conclude that one strategy is always better
than the other. One has to be reminded that while the Ford
Mondeo/Contour project cost $6 billion and took six years to
develop, potential cost savings from the global strategy could
also be enormous for years to come. On the other hand, GM’s
regional strategy could also make sense if regional taste
differences remain so large that a Ford-style global strategy
could, indeed, end up producing a ‘‘blandmobile’’ that hits the
lowest common denominator of taste in different markets.
Which was a winning strategy in the 1990s? Ford’s expresident,
Jacques Nasser, wanted to keep the efficiencies
generated from central thinking about design and production.
But he wanted to reintroduce the market focus in regions
across the globe that will give Ford stronger brands and more
appealing products. The Ford 2000 was a good idea carried a bit
too far. Ford Contour was discontinued from the U.S. market in
2001. Ford is now trying to redefine the Ford 2000 program
with a heightened emphasis on the company’s brands and to
give the various regional and brand units more autonom