Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Ford's Next-Generation Edge Will Leap Ahead of the Competition

Ford Edge concept. Photo credit: Ford.

Ford (NYSE: F  ) gets a lot of credit these days for its incredible business turnaround, and rightfully so. But I don't believe the company receives enough credit in how it's succeeded in designing one vehicle hit after another. CEO Alan Mulally and his team's change in strategy included designing new cars with aggressive styling, more technology and safety features, and better fuel economy -- it's worked like a charm.

At this week's Los Angeles Auto Show, Ford unveiled its new Edge Concept, which will probably be very similar to the production Edge seen in 2015 as a 2016 model -- and I think it will set the model's record sales in the U.S. when it's launched. Here's why.

Luxury undercover
Looking at the interior, exterior, and technology offerings of the next-generation Edge, it's clear Ford is aiming to stuff as many premium features in the ride as consumers are willing to pay for -- a strategy that has paid off well for the company, as well as its satisfied consumers.

Starting with the exterior, Ford is sticking with its design theme similar to other recently redesigned models. It has an aggressive look with sleek lines, a three-bar grille, and sharp LED headlamps.

Under the hood Ford, hasn't released the exact specifications of the powertrain but has said it will include a next-generation EcoBoost engine, which has been a huge seller among similar models. Consider that Ford's Escape has a 89% take rate on the EcoBoost engine option. The new engine will have start-stop technology, and the Edge will also incorporate Active Grille Shutters to keep engine temperature and aerodynamics at optimal performance.

The interior of the Edge concept may be the most eye-catching, however, and Ford looks to have taken steps to fixing one of its largest problems.

Interior of Ford's Edge concept vehicle. Photo credit: Ford.

"We wanted the interior to be consistent in its dynamic character with the exterior of the Ford Edge Concept," said Hak Soo Ha, interior design manager, in a Ford press release. "We call the interior environment Dynamic Sanctuary, because it combines the energetic character of the exterior with a more premium cabin execution. The shapes provide a dynamic, in-motion impression that soothes rather than fatigues."

Ford's aiming to fix complaints on its MyFord Touch display. Photo credit: Ford

The interior boasts a modern and luxurious look and feel with premium elements that include leather-wrapped and hand-stitched instrument panels, unique gear shifter and steering wheel, and an enormous 10-inch touch screen center display with MyFord Touch. The latter feature has plagued Ford in recent ratings because of its buggy performance, but the folks at the Blue Oval have taken steps to incorporate more buttons and knobs to improve consumer functionality.

While those insights just scratch the surface, the more you look into the Edge I think the clearer it becomes the next generation will set the model's record annual sales in the U.S. market. Even now the Edge is on pace for its second best year, as crossover sales continue to grow faster than the industry, and the next-generation should easily push it over the top.

Even more important than improving sales and revenues in the U.S., is Ford's focus to take all of its models onto the global stage. One of the key components for this is providing stylish models in hot segments with better fuel economy -- the Edge checks off all three of these factors.

Hot segment
According to IHS Automotive, global utility vehicle sales grew 45% between 2007 and 2012, and the segment now accounts for more than 13 million sales annually. Ford has also doubled down on its growth initiatives in China, the world's largest automotive market, where its goal is to double its market share to 6% by mid-decade by launching 15 new models. China's utility vehicle sales are projected to double from its 2012 levels by 2017, and the Edge looks well positioned -- as Chinese consumers have taken to Ford's SUV offerings -- to take more than its fair share of the growing market segment. Ford's Edge will also have a great opportunity to take market share in Europe and South America which are projected to grow 27% and 39%, respectively, according to IHS Automotive.

Bottom line
Ultimately, the Edge will succeed where Ford's other recent models have -- better fuel economy in a stylish design loaded with technology and safety features. The Edge will also take it a step further by fixing some complaints with previous MyFord Touch display and will unveil a new EcoBoost engine. Ford is targeting one of the hottest global segments and has set itself up for another vehicle hit with consumers.

Ford's Edge is an example of why I remain bullish on Ford: It continues to successfully design new cars that people actually want to buy.

How the U.S. is saying goodbye to "Made in China"
The Economist
compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And everyone from BMW to Nike to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the "Made in China" era, and learn the investing strategy we've used to double our money on these 3 stocks. Click here to watch now!

Read/Post Comments (3) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 23, 2013, at 9:00 PM, bcweir wrote:

    Bring back the THUNDERBIRD as a personal luxury coupe! Base it off the 1983 to 1988 cars, not the overweight 1989 to 1997 model or the failed 2002 to 2005 retro convertible.

    Not everyone wants or needs a Mustang!

  • Report this Comment On November 24, 2013, at 2:41 PM, JohanStrauss wrote:

    And not everyone wants a Ford, period. I'll never own another.

  • Report this Comment On November 25, 2013, at 9:19 AM, NBAFordAgain wrote:

    I own a 2013 Ford Escape that I purchased last October and my Dad bought a 2011 Ford Taurus around the same time last year. We both have had several problems from electrical issues and my escape losing power “stalling”. I can tell you the poor quality suspension in both vehicles and SYNC issues are enough to make you want give the vehicles back and take a repo hit on our credit. We have never been as unhappy with a car maker’s product like now as Ford owners. I actually lost power driving to work this morning starting off at red light when it turned green. I think the one thing that has me to the point of burning this 2013 Ford Escape is how crappy the "My Ford Touch & Sync" is neither work properly on consistently. I end with this I opened my back hatch one day to load groceries and when I pulled on the inside handle to close the hatch the entire plastic paneling on the hatch door collapsed on my face.

    I can say that after this experience my Dad and I will Never Buy a Ford AGAIN!

    I also owned a 2008 Ford Edge and I had to trade it in because the transmission started to go.

    I want anyone that reads this to know I baby my cars I clean them once week, I change the oil on time every 3,000 miles and I rotate and balance my tires on schedule. Ford has truly been the worst car I have ever owned.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2740661, ~/Articles/ArticleHandler.aspx, 9/26/2016 5:23:44 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
F $12.01 Down -0.16 -1.31%
Ford CAPS Rating: ****