Blog: The Wall Street Journal, Nov-23-2011 – DETROIT-Jim Farley, the head of marketing at Ford Motor Co., has lately been telling his young son that there is a very scary person living in their neighborhood-a man who works for General Motors Co.
The neighbor, he has explained, is a "bad man" who works for the "wrong company," Mr. Farley recalled at a recent gathering of bloggers, according to a video of the event that was posted on YouTube.
On Halloween, the father and son trick-or-treated at the man's house, and the boy took candy and then announced, "'Chevy is for losers,'" Mr. Farley told the bloggers. "I've never been more proud of my son," he added.
The U.S. has plenty of great corporate rivalries: Apple vs. Microsoft, Visa vs. MasterCard, Coke vs. Pepsi. But few are as close and personal as the battle between Detroit's two giant auto makers.
Ford, which was founded in 1903, and GM, founded five years later, have been going at each other for more than a century. The bitterness is heightened by proximity: Ford's Dearborn, Mich., headquarters is 11 miles from GM's in downtown Detroit.
In the last decade, the GM-Ford sparring took a back seat as trouble mounted for both and Toyota and Honda emerged as threats to both. In 2008, Ford Chief Executive Alan Mulally went to Washington to help plead for a bailout for GM and Chrysler Group LLC, the smaller member of the Detroit three. For a time, Ford's biggest worry about GM was that its rival would collapse, taking down important parts suppliers with it.
But now that GM is back on its feet, it's proving to be as tough a competitor as ever for Ford. So far this year, GM has boosted its U.S. market share by eight-tenths of a point to 19.8%, while Ford's is up only one-tenth, to 16.8%. And in the first three quarters of the year,
The resumption of hostilities comes amid a key opportunity for both companies. Toyota and Honda are slumping, hurt by vehicle shortages, natural disasters and some quality missteps. Both U.S. companies see an opening to grab share in their home market, and once again the biggest obstacle is the guy across town.
Earlier this year, GM Chief Executive Dan Akerson was asked by a Detroit newspaper about Ford's Lincoln brand, whose sales have flagged for years. He didn't hold back.
"They are trying like **** to resurrect Lincoln. Well, I might as well tell you, you might as well sprinkle holy water. It's over," Mr. Akerson said.
Two years ago, the weekly meetings Mr. Mulally holds with his top lieutenants often focused on Toyota as the key competitor to watch, a person who has attended the meetings said. Now Ford executives are again targeting GM, the person said.
It's a critical time for the companies because legions of car buyers are up for grabs. The auto industry is rebounding after a slump that lasted nearly five years. Meantime, customers long loyal to Asian auto makers are taking a new look at other brands. At a time when Ford and GM are becoming comparable in terms of vehicle quality, cost and offerings, the image of each company stands to play an influential role in consumers' decisions.
The neighbor, he has explained, is a "bad man" who works for the "wrong company," Mr. Farley recalled at a recent gathering of bloggers, according to a video of the event that was posted on YouTube.
On Halloween, the father and son trick-or-treated at the man's house, and the boy took candy and then announced, "'Chevy is for losers,'" Mr. Farley told the bloggers. "I've never been more proud of my son," he added.
The U.S. has plenty of great corporate rivalries: Apple vs. Microsoft, Visa vs. MasterCard, Coke vs. Pepsi. But few are as close and personal as the battle between Detroit's two giant auto makers.
Ford, which was founded in 1903, and GM, founded five years later, have been going at each other for more than a century. The bitterness is heightened by proximity: Ford's Dearborn, Mich., headquarters is 11 miles from GM's in downtown Detroit.
In the last decade, the GM-Ford sparring took a back seat as trouble mounted for both and Toyota and Honda emerged as threats to both. In 2008, Ford Chief Executive Alan Mulally went to Washington to help plead for a bailout for GM and Chrysler Group LLC, the smaller member of the Detroit three. For a time, Ford's biggest worry about GM was that its rival would collapse, taking down important parts suppliers with it.
But now that GM is back on its feet, it's proving to be as tough a competitor as ever for Ford. So far this year, GM has boosted its U.S. market share by eight-tenths of a point to 19.8%, while Ford's is up only one-tenth, to 16.8%. And in the first three quarters of the year,
The resumption of hostilities comes amid a key opportunity for both companies. Toyota and Honda are slumping, hurt by vehicle shortages, natural disasters and some quality missteps. Both U.S. companies see an opening to grab share in their home market, and once again the biggest obstacle is the guy across town.
Earlier this year, GM Chief Executive Dan Akerson was asked by a Detroit newspaper about Ford's Lincoln brand, whose sales have flagged for years. He didn't hold back.
"They are trying like **** to resurrect Lincoln. Well, I might as well tell you, you might as well sprinkle holy water. It's over," Mr. Akerson said.
Two years ago, the weekly meetings Mr. Mulally holds with his top lieutenants often focused on Toyota as the key competitor to watch, a person who has attended the meetings said. Now Ford executives are again targeting GM, the person said.
It's a critical time for the companies because legions of car buyers are up for grabs. The auto industry is rebounding after a slump that lasted nearly five years. Meantime, customers long loyal to Asian auto makers are taking a new look at other brands. At a time when Ford and GM are becoming comparable in terms of vehicle quality, cost and offerings, the image of each company stands to play an influential role in consumers' decisions.