Industry Report: Production Begins for Ford Edge and Lincoln MKX

Production Launch for Fords Latest Crossovers

As the only worldwide source for the all-new 2007 Ford Edge and Lincoln MKX crossover utility vehicles (CUV), Ford of Canada and its Oakville plant are understandably very proud of the achievement. Ford will export the Edge and MKX to over 40 countries around the world and plans to produce about 1,200 vehicles per day. All of this is thanks to a $1 billion investment by Fords Oakville Assembly Complex to convert the half-century-old facility to the latest in flexible manufacturing technology. Two hundred million dollars from the Canadian government and the Ontario provincial government also assisted in bringing production of the Edge/MKX to Oakville. Overall in North America, Ford is ahead of the game and will soon have 85 percent of their North American plants converted to flexible manufacturing processes up from 38 percent just a few short years ago.

I arrived at 9 a.m. to participate in an in depth tour of the 5.4 million square foot assembly complex. Ive been on plant tours before that were also designed for flexible manufacturing, and what I saw here was a clean and seemingly efficient plant. The key to flexible manufacturing, as the Japanese have known for years, is the ability to build multiple models on unique or shared architectures enabling an automaker to quickly change the mix, volume and options of products in response to the market.

At Oakville I enjoyed talking to a couple of the employees who worked on the line and seemed excited about the products being produced; even though one of them told me that the Freestar is done in six months, which isnt exactly a secret. Ford has confirmed that a new people mover will be built around the Ford Fairlane concept that will be a full-size, seven-passenger CUV; slated to go on sale in 2008.

After the tour we gathered with several hundred Oakville employees, as well as local and federal politicians and a series of speakers during the official media launch. On hand were former Boeing CEO Alan Mulally, who took over the role of president and CEO of Fords global operations from Bill Ford just a couple of weeks ago, and Joe Hinrichs, Ford Motor Company of Canadas just departed president and now vice-president of manufacturing for Ford Motor Company, who touted crossovers as the fastest growing segment in the industry.

Pricing for the Edge begins at just over $25,000, and the Lincoln MKX starts at just under $35,000. Both go on sale in a couple of weeks.

Ford of Canadas new CEO Bill Osborne claimed that, "This vehicle is going to shake up the crossover market," and added, "We will combine the advantages and speed that flexible manufacturing offers with a renewed focus on ever changing consumer tastes to build a stronger and more profitable Ford Motor Company, and in order to lead we have to create our own opportunities. No one else is going to do it for us. The Oakville assembly complex is proof we can define our future, we can change the game and we will win."

Game-changer seemed to be the overall theme of the morning, but I see it as only a step in the right direction. Two models are not going to suddenly reverse Fords sagging fortunes. Ford needs several game changers to build a strong line up of cars and trucks (bring over the European Focus please) and they each have to be successful in their segment of the market. I know Ford can do it. An example is the most recent Mustang that has been the star in the lineup, and is responsible for making muscle cars affordable again, as well as inspiring the Camaro and Challenger

Canadian Auto Workers Union president Buzz Hargrove took the podium to loud cheers as well a couple of jeers. Regardless of whether you agree with him or not, Hargrove is a passionate, dynamic speaker and is interesting to see in person. He blamed trade barriers put in place by the Japanese and Koreans for some of the U.S. auto industrys problems, suggesting that, "We must say to the Asian producers if theyre going to sell in our economy, by god for every vehicle you sell you must buy one in your economy, thats fair trade." While I agree it would be nice to see North American built vehicles sold in Japan and Korea, its hardly news that the U.S. and Canada have toyed with a fair share of barriers against the Asians in order to reduce the number of cars they sell here.

After Hargrove left the podium an Edge drove onto the stage and out stepped Alan Mulally to employee cheers and applause, almost as loud as for Buzz Hargrove, and then loudest of all, the room erupted when former Edmonton Oiler and L.A. King, plus current Ford of Canada Spokesman Wayne Gretzky emerged from inside the new crossover.

"The new Ford Edge and Lincoln MKX will change the game in the auto industry. These are winning products being built by a winning team," Gretzky said.

Its easy to be cynical at Gretzkys statements since he is paid by Ford, but truly it looks as though the Edge and MKX have styling, price and excellent fit and finish going for them. What are they like to live with? Check out last weeks road test and find out for yourself.