Filed under: Industry, Consumer experience, Ford Motor (F), Marketing and advertising
This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Ford below in the comments.
I didn’t grow up in one of those families that placed a high premium on American-made goods. If the Japanese can make it better, we’ll purchase it from them! was the general consensus. And those foreign autos served the Harrows well. My parents purchased their 1984 Toyota Tercel when it was new, and that unattractive but reliable compact was part of the family through the beginning of my college career — even surviving my first, hilarious attempts to operate a manual transmission. So, it wasn’t until I moved in with my friend Debbie, as an adult, that I learned the details behind a particularly unflattering nickname for the Ford Motor Co. (NYSE: F).
There are those who would joke that the letters in “FORD” stand for “Fix Or Repair Daily.” I know from experience that if you make that particular wisecrack within Debbie’s earshot, she probably won’t crack a smile. Instead, you can nearly see her wheels churning, as though she’s trying to calculate the thousands she’s already poured into her Ford Focus — or maybe she’s just trying to predict which part will break down next.
During the time we shared a mailbox, it was a not-out-of-the-ordinary occurrence for Debbie to receive recall notices bearing the familiar Ford logo. These repair-o-grams arrived with such frequency that the exact number now escapes my memory; when I questioned her via text message, she replied, “I have had six. Stupid automobile.”
Of course, some would argue that this speaks more to the peril of buying a new model the first year it’s released (which she did). Others might recommend that her vehicle is simply cursed. While parked outside our apartment, which faced a busy thoroughfare, she lost at least two rear-view mirrors to drive-by sideswipers, while I lost none. Her Focus was also the victim of a break-in, wherein she was robbed of a half-used Diet Pepsi and less than a dollar’s worth of change.
My ex-roomie’s jinx aside, Ford has been endlessly chagrined by the old “fix or repair daily” chestnut. As proof of its widespread acceptance and usage, even among the upper echelons of the financial media, the nickname was used by Forbes as the headline of a critical 2001 story about the automaker. (On the plus side, the magazine politely side-stepped the car company’s more offensive nickname: “found on road dead.”)
In fact, Ford itself has admitted to quality issues — albeit obliquely. Perhaps you caught the company’s current advertising campaign, which boasted that a recent survey (sponsored by Ford) found Ford’s quality to be on par with that of Toyota Motor (NYSE: TM). I’m no marketing exec, and so I’m not sure what reaction the ads were meant to elicit. For the record, my own take was something along the lines of: Really? Wow, and it’s only 2008. Good hustle, gang! That is to say, the campaign may have done more to underscore Ford’s years of underperformance, rather than highlighting its current accomplishments.
And, despite the promise of improved quality, there are still millions of blue oval-bearing automobiles on the road that suffer from those familiar old quality issues. A recall was issued on more than 12 million Ford vehicles in August 2007 after it was found that the cruise control system was — how to put this delicately? — highly apt to catch fire. Parts to repair the faulty system were made available just a few weeks ago, as if to drive home the brand-newness of Ford’s dedication to quality.
While Ford execs might not be fond of motorists’ cheeky nickname for its autos, it’s hard to argue that the company’s explosion-prone fleet doesn’t deserve a wee bit of flak. And, hey, things could always be worse — Fiat has been slapped with a moniker that’s similarly insulting to its cars, but ups the ante by adding an ethnic slur to the mix. Ahhh … American ingenuity at its finest!
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer’s Investment Research. She is featured in the weekly video series Option Basics on SchaeffersResearch.com.
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