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COPYRIGHT 2004 All rights reserved. Reproduced by permission of The Condé Nast Publications Inc.
In the summer of 1996, the Ford Motor Company began building the Expedition, its new, full-sized S.U.V., at the Michigan Truck Plant, in the Detroit suburb of Wayne. The Expedition was essentially the F-150 pickup truck with an extra set of doors and two more rows of seats--and the fact that it was a truck was critical. Cars have to meet stringent fuel-efficiency regulations. Trucks don't. The handling and suspension and braking of cars have to be built to the demanding standards of drivers and passengers. Trucks only have to handle like, well, trucks. Cars are built with what is called unit-body construction. To be light enough to meet fuel standards and safe enough to meet safety standards, they have expensive and elaborately engineered steel skeletons, with built-in crumple zones to absorb the impact of a crash. Making a truck is a lot more rudimentary. You build a rectangular steel frame. The engine gets bolted to the front. The seats get bolted to the middle. The body gets lowered over the top. The result is heavy and rigid and not particularly safe. But it's an awfully inexpensive way to build an automobile. Ford had planned to sell the Expedition for thirty-six thousand dollars, and its best estimate was that it could build one for twenty-four thousand--which, in the automotive industry, is a terrifically high profit margin. Sales, the company predicted, weren't going to be huge. After all, how many Americans could reasonably be expected to pay a twelve-thousand-dollar premium for what was essentially a dressed-up truck? But Ford executives decided that the Expedition would be a highly profitable niche product. They were half right. The "highly profitable" part turned out to be true. Yet, almost from the moment Ford's big new S.U.V.s rolled off the assembly line in Wayne, there was nothing "niche" about the Expedition.
Ford had intended to split the assembly line at the Michigan Truck Plant between the Expedition and the Ford F-150 pickup. But, when the first flood of orders started coming in for the Expedition, the factory was entirely given over to S.U.V.s. The orders kept mounting. Assembly-line workers were put on sixty- and seventy-hour weeks. Another night shift was added. The plant was now running twenty-four hours a day, six days a week. Ford executives decided to build a luxury version of the Expedition, the Lincoln Navigator. They bolted a new grille on the Expedition, changed a few body panels, added some sound insulation, took a deep breath, and charged forty-five thousand dollars--and soon Navigators were flying out the door nearly as fast as Expeditions. Before long, the Michigan Truck Plant was the most profitable of Ford's fifty-three assembly plants. By the late nineteen-nineties, it had become the most profitable factory of any industry in the world. In 1998, the Michigan Truck Plant grossed eleven billion dollars, almost as much as McDonald's made that year. Profits were $3.7 billion. Some factory workers, with overtime, were making two hundred thousand dollars a year. The demand for Expeditions and Navigators was so insatiable that even when a blizzard hit the Detroit region in January of 1999--burying the city in snow, paralyzing the airport, and stranding hundreds of cars on the freeway--Ford officials got on their radios and commandeered parts bound for other factories so that the Michigan Truck Plant assembly line wouldn't slow for a moment. The factory that had begun as just another assembly plant had become the company's crown jewel.
In the history of the automotive industry, few things have been quite as unexpected as the rise of the S.U.V. Detroit is a town of engineers, and engineers like to believe that there is some connection between the success of a vehicle and its technical merits. But the S.U.V. boom was like Apple's bringing back the Macintosh, dressing it up in colorful plastic, and suddenly creating a new market. It made no sense to them. Consumers said they liked four-wheel drive. But the overwhelming majority of consumers don't need four-wheel drive. S.U.V. buyers said they liked the elevated driving position. But when, in focus groups, industry marketers probed further, they heard things that left them rolling their eyes. As Keith Bradsher writes in "High and Mighty"--perhaps the most important book about Detroit since Ralph Nader's "Unsafe at Any Speed"--what consumers said was "If the vehicle is up high, it's easier to see if something is hiding underneath or lurking behind it." Bradsher brilliantly captures the mixture of bafflement and contempt that many auto executives feel toward...
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