DEARBORN, Mich. — It never became a symbol of excess, like the Hummer, but the once wildly popular Ford Explorer had become a relic of days when gas was cheap, housing prices were rising and the idea of driving a big, truck-based SUV to the suburban supermarket was rarely questioned.
But Ford unveils its new-generation 2011 Explorer today in a different world, where unemployment is still painfully high and people are questioning the costs of everything: gas, food, college degrees.
The new car-based crossover Explorer is very different, but Ford faces a marketing challenge in a name many people link to gas-guzzlers. Jim Farley, Ford's head of marketing, says his No. 1 job will be to break down barriers people have built up against SUVs.
"My job is really to myth-bust, to really tell the story authentically and re-engage those people who lost the dream of the category," he says.
Ford is rolling out the new Explorer today in an unusual fashion, eschewing auto shows and Super Bowl ads to instead show the vehicle at a number of events around the country and on Facebook.
It hearkens back to car rollouts of the 1950s and '60s, when people would line up outside a car dealer to see the tarp pulled of the newest model.
"We really wanted to pick a day and make it Explorer day," Farley says. "We wanted to make it bigger than just an auto show."
Getting the Explorer right could extend Ford's recent winning streak. Last week, it reported $2.6 billion in earnings for the second quarter, based primarily on sales of its car models. SUVs and trucks traditionally have been far more profitable for automakers, so if Ford can woo Americans back to Explorers, it could mean even higher profits. Pricing has not been announced for the 2011.
"It is an incredibly important launch for them, between the brand recognition and the general impact on the bottom line that this vehicle could make," says Rebecca Lindland, an analyst at IHS Automotive.
During Explorer's heyday in the late 1990s and early 2000s, Ford sold about 400,000 a year. Last year, it sold just 52,000. Granted, 2009 was a terrible year for car sales, but even in 2008, sales were not much better.
About 96% of American consumers know the Explorer brand name, says Mark Fields, Ford's executive vice president and president of The Americas. But the primary reason they've said "no" to buying one is fuel economy, he says.
"We really want to take away the reasons people have to not buy SUVs," he says.
Ford spent a lot of time working on improving the Explorer's fuel economy. The new version weighs 100 pounds less than the last Explorer, and it's more aerodynamic.
Official fuel-economy numbers are not yet out, but Ford says the 2011 will get 20% to 30% better government mileage ratings. Lindland says she expects ratings to come in even better: She thinks engineers will find a way for at least one engine option to get more than 30 mpg on the highway. "Thirty mpg is the new mantra. Everyone is looking for that 30 mpg threshold. I hope they get it."
In creating the new model, the company studied customers' needs. Amy Marentic, Ford's large cars and crossover marketing manager, said marketing folks went out and stayed in the homes of 20 or so Explorer owners. The marketing executives went through their closets, went with them on their errand runs and ate dinner with them.
"We spent time with them so we could anticipate their needs," she says.
They found folks still yearned for a vehicle they could take off-road occasionally, holding onto the fantasy of an adventure vehicle, but needed a vehicle that could carry seven people and a lot of stuff.
Also from the research came the idea of a terrain-management system that adjusts the four-wheel-drive characteristics based on the driver simply turning a knob to select road conditions, such as sand, snow and mud. They also improved the company's signature SYNC voice-controlled entertainment system and expanded it into a system they now are calling MyFord Touch.
Based on the Taurus platform, the 2011 Explorer should have a more car-like ride.
"Customers have evolved, but the SUV has not evolved," she said. "We want to change that."
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