
With the Microsoft-based Sync music and phone service, Ford has the opportunity to resurrect its image and maybe its fortunes. Blow this one with overpricing, though, and it's sink-with-Sync or swim, for Ford.
Every dollar Ford charges above $250 will hurt the company more than it helps, in the long run. While Ford remains mum on pricing, some reports say Ford is considering all price points under $1,000. Earth to Ford: Get real. Keep it under $300. Make it standard on every Lincoln and any Ford or Mercury selling north of $30,000.
Ford partnered with Microsoft to announce Sync, at both the North American International Auto Show in Detroit and at the Consumer Electronics Show, on January 7. Sync's USB wired jack and Bluetooth wireless module provide connections to virtually all phones and music devices, plus voice recognition, phonebook transfer, and an audible reader for messages you get on a phone. I believe Sync has the potential to provide the best, most affordable links for virtually every phone, music player, and USB key with music.
Sync provides essentially the same functionality as the Microsoft-Fiat venture Blue&Me, which was announced in February, 2006 with a one-year world exclusive. At the time, I predicted Ford would be the first U.S. automaker to align with Microsoft. I'd be delighted if you credit my tech savvy and industry-insider contacts for making the call, but it really was a matter of needs-based triangulation: The U.S. automaker in dire straits, without much positive product buzz, and not much innovative in the way of AV or navigation services. GM has great buzz for Cadillac and parts of Saturn, Chrysler has muscular sedans and the Mercedes-Benz bankroll, but Ford had no halo car beyond Mustang and not much AV savvy beyond some line-in jack offerings.
Ford did the right thing by announcing Sync for a wide array of a dozen 2008 model year vehicles starting this fall, not just for high-end cars. The models include the Ford Focus, Fusion, Five Hundred, Edge, Freestyle, Explorer and Sport Trac; Mercury Milan, Montego and Mountaineer; and Lincoln MKX and MKZ. Among them are some desirable cars, such as the Edge and the 2008 Focus. I'm not sure Sync can do much for the Five Hundred (maybe the 2008 redesign helps). Too bad Sync isn't offered on the Mustang, one of Ford's positive sales surprises.
With its one-year exclusive in the U.S., Sync gives Ford the chance to leapfrog the competition, sway buyers, and enhance Ford's image. This will all happen at $250, which should cover Ford's costs. There's a rudimentary PC in the dash with 256MB of RAM, the Microsoft Auto operating system, USB and Bluetooth interfaces, a tiny mike in the mirror, and steering wheel buttons. That's it. And, yes, the MS Auto OS is pretty stable. I also enjoy the "another way to make your car crash" jokes, but it's just not the case any more.
If Ford decides to think "profit opportunity" rather than "save the company" (with prices at $500 or $750), Sync's appeal would fade, since you can get a Bluetooth earpiece for $0 after a mail-in rebate and an iPod wireless adapter for $25. That's a lot klunkier and less safe, but a lot cheaper. Besides, Sync doesn't have the rudimentary navigation feature that's found in the Fiat Blue&Me system, which is selling for around $300 in Europe.
Desperate times call for desperate measures. (Or do you think GM and Ford are too big to fail?) At least for the initial production run, Ford should put Sync on most every car except the stripper models that barely have air conditioning. Because it involves steering wheel buttons and a microphone in the rear view mirror, Sync isn't an easy dealer-retrofit item.
If there's early buyer resistance, Ford could make Sync a free promotional item; heck, Cadillac has a promotion that made $1,800 navigation systems free. Over time, the word gets out: Buy a 2008 Ford and you've got flawless connections for cell phones and music players that work better than anything else. For some potential buyers, Sync will tip the scales.