Taurus: The Car That Ford Builds

By Leroy A. Binns Ph.D.

The Company

“I will build a motor car for the great multitudes, constructed of the best materials by the best men and women to be hired. Any person making a good salary will be able to own one, and enjoy with his family, the blessings of hours of pleasure and God’s great spaces.” – Architect Henry Ford

The Ford Motor Company was established in June 1903. A month later the Mack Ave plant assembled its first car – a two cylinder Model A, FMC of Canada was launched in Windsor and production began at Piquette Ave in Detroit.

As the public became increasingly aware of the company’s existence in 1908 the famous Model T made its debut. This automobile was extremely popular aiding the establishment in achieving a major milestone in 1915 – the one millionth Ford produced and remained on the market until 1927. During this period the institution also enhanced its image with the invention of manufacturing operations in Highland Park in Michigan and Trafford Park in Manchester, England, the building of trucks with Model T engines and the purchasing of Lincoln Motor Company for $8 million.

Although the 1930s created a demand for Ford automobiles and prompted the launching of the Mercury division, production declined following World War II until the introduction of the 1949 line and the origin of the Thunderbird. Years later the Falcon and the 1964 Mustang also enabled the corporation to remain dominant.

Over the past thirty six years Ford maintained its market by addressing consumers’ concerns such as innovative styling, low pricing and customer satisfaction and has therefore been successful in producing a variety of cars, pick ups, sport utility vehicles (SUVs), vans and trucks. Some award winning products are the Escort, once the best selling in the world, the Taurus formerly America’s best selling mid-sized sedan and the Explorer a best seller among SUVs.

Today the automaker has an enormous global presence. Ford is a prominent transportation manufacturer on all continents. Furthermore the acquisition of Jaguar, Austin Martin and Volvo cars, the formation of the Premier Auto Group comprised of Jaguar, Austin Martin, Volvo and Lincoln and the introduction of world cars namely the Focus and the Lincoln LS are strong indications of an enterprise destined for greater recognition.

The Car

In striking contrast to the auto critic’s negative comparisons to “jelly beans,” “flying spuds” and “gel tabs” the unveiling of the Ford Taurus in 1986 received a warm reception from the American public.

Records indicate it had been the best selling car in the country for five consecutive years. Moreover with its sibling the Sable the cars accounted for one-third of Ford’s US auto production and surpassed US sales of all European brands combined as well as all US Nissan models. In fact a decade after its introduction the sales of over 3.3 million Tauruses provided 100,000 suppliers with jobs, benefited 700,000 shareholders and generated sales revenues of billions.

In a quest to repeat its remarkable success on September 1995 Ford launched the second generation Taurus completely revamped at a price tag of $2.8 billion. The new car consisted of an oval grille, headlights, rear window, door handles, control panel and air bag pad while lacking chrome trim and visible seams. The sleek appearance also included a curving rear deck and a sloping windshield.

Unfortunately problems existed throughout the inception and production of the car. A cause for concern rose from the high attrition rate of the Taurus team over the thirty eight month life span of the project. In addition chief engineer George Bell exacerbated the crisis when he was quoted as saying, “We need major improvement in the squeak and rattle performance and engine noises that came with wide open acceleration. There was a tendency of the car to loosen up and we clearly needed to improve points in steering and handling confidence.” Would Ford duplicate past success? Could the Taurus rid the market of its arch rival the Toyota Camry?

In the words of Ken Zino Detroit’s editor for Road & Track, “It moves a couple of giant steps towards the Accord and Camry” – a sentiment shared by many leading auto enthusiasts. Yet they have been proven incorrect. By March 1996 demands for the Taurus waned. Despite a $150 million advertising campaign, increased fleet sales, the introduction of a cheaper model – the G model which was soon abandoned, a $600 rebate and 4.8% discount financing, sales of the once best selling medium sized sedan dropped to 4% in January and 8.1% in February. As a result in February while GM and Chrysler’s total car sales rose by 5.2% and 6.7% respectively from a year ago Ford’s sales fell by 4.7% during the same period. Matters worsened in June 1996 when monthly sales fell below 30,000 units – the most disheartening record of the year to date while even with an increased rebate of $1000 sales plummeted by 4.2% throughout July.

The Taurus’ dismal performance was heavily due to unattractive styling and high cost. One shopper bluntly echoed the opinion of many by saying, “The car has too many ovals.” Most significantly while the Camry was priced $900 less than the previous model the Taurus cost thousands more than the competition, allowing the latter to outsell its Ford rival by 15% by the end of July 1997.

For the year 2000 the critics and consumers may finally agree that Ford retreated to a more conservative appearance. The Taurus has been “de-ovalized” to better appeal to buyers of family sedans who by enlarge are traditional in relation to style

Perhaps the new generation Taurus will exceed the expectations of the manufacturer and consumers alike.

The Future

In an article entitled “Fordism” mention was made of sociologist Stuart Hall’s characterization of the “post Henry Ford” era as follows “A shift to the new technologies and a greater emphasis on the choice and product of differentiation, on the market, packaging and design, on the targeting of consumers by lifestyle, taste and culture rather than by categories of social class.”

To meet such challenges in a “high tech” global economy Ford is responding through the adoption of new technology, acquisitions and markets.

The initiation of the C3P program reduces product development time and the utilization of its subset ICEM Surf AFFS by Ford’s production studios is an efficient means in creating surfaces under the watchful eyes of designers. In the case of the Taurus the aforementioned technology enhances specify objectives which includes:

Demanding preparation schedules that require the team to alter the car’s design/development cycle (e.g., the time between the basic decision to build a car and the beginning of its production) from forty three months to thirty three months.

Process improvement objectives that require participating designers and engineers to adopt the concept of team management and lean production outlined in Ford 2000 – the company’s overall re-engineering program.

Ambitious styling goals that require the redesign team to transcend the acclaim Ford received when she introduced the Taurus in 1986.

Other factors that could have a lasting effect on Ford Motor Company and the Taurus in particular may include the response to the new and upcoming lines such as the Taurus, the Focus, the Lincoln LS and the 2003 Escape HEV – a hybrid Ford that is intended to operate on gasoline and electricity, the gains from foreign auto groups (which may encompass Daewoo and Rover SUVs), entertainment, insurance and technologically based enterprises and the advancement of markets which are presently pursued in Europe and South America.

Ford has ascended to new heights with accolades such as J.D. Power and Associates 1998 Chairman Award for Cooperation in Vehicle Quality Improvement, Harbour Report’s 1998 clean bill of health – the best productivity improvement assessment and a record setting earning of $7.2 billion in 1999. However failure to streamline product planning, improve marketing strategies, reduce cost and increase quality could prove detrimental to the organization’s continued good fortune.