Mondeo

Fords World Car(s)

How international converegence of taste affects Q

Contour

Fords World Car(s)

In 1993: Ford Introduced Mondeo, in Europe
In 1994: Ford Introduced Ford Contour and Mercury
Mystique the same basic mid size car in US.
Ford intended to develop a single basic car for the
whole world which took 6 years, cost $6 million
twice the cost of Taurus ( of Ford ) and 4 time
higher than Dodge/Plymouth Neon ( by DaimlerChrysler)
Which could save 25% of its cost to be used for
developing separate car for US and Europe.
Ford realized that consumer taste had
converged sufficiently across globe so that a
single car would suffice
Ford changed only the exterior design ( form its
Michigan, England and Italy plant) keeping 75 %
of their parts in common.

Fords World Car(s)

Although in its first attempt to make a global car in 1981 Ford failed and
criticisms came from different corner, Ford was quite confident about its
success in the second attempt.
But the Mondeo-Contour-Mystique was not vey successful
Ford Lunched the new car Focus in 1998 in Europe and in 1999 in US,
which was again not successful
Why?
It mainly because the consumer taste across globe are not the same.
Over the years Customer shifted there taste towards sport wagons-a
cross between Sedans and Sport Utility Vehicles.
Thus consumers taste in one of the most important determinant of
demand function.

Thank You All