Ford General Dzihic in an interview

Ford General Dzihic in an interview

Motor vehicle economy: Mr. Dzihic, let's start our conversation with the political framework conditions. Diesel bashing, impending driving bans: what do you think?
Danijel Dzihic:You can only think about what happened recently. Some of the popular media have taken up this topic in a very grotesque way. Everything was mixed together and there was no longer any differentiation. Ultimately, the attempt was simply to discredit the automobile and private transport.

To what extent has damage been done?
At the moment we don't feel that the residual values ​​of diesel models would suffer. What is definitely noticeable, albeit at a low level, is that there are even stronger requests for petrol engines, particularly in the B and C segments. Even in classic diesel segments such as the Galaxy, people are asking for petrol engines and that has never been the case. In any case, people are unsettled. This requires more educational work for the automobile trade. After the so-called diesel scandal, the entire industry was labeled a “fraud”. Even Ford suffered damage to customer trust, even though we didn't have any illegal software.

Will all of this remain in the minds of end consumers, or will everything get better now?
The most important thing is education. This is what the dealers, the manufacturers and also the automobile importers working group do. Fuel consumption figures will always be standardized or standardized and therefore do not correspond to real consumption. The actual consumption actually depends on hundreds of parameters.

But the media probably won't be entirely to blame.
No. The car manufacturers haven't behaved particularly cleverly either. With education and lobbying we could have steered a lot of things in the right direction. We all should have been more active from the start.

Do you expect driving bans for diesel vehicles in urban areas?
No, I think that's unlikely. I believe that the new government would be ill-advised to impose such a thing. Enough damage has already been done. I advocate keeping the ball flat. Now it's primarily about building trust again.

How did the first three quarters go for Ford Austria? Where do you stand in terms of market share?
We currently have a market share of seven percent. Cars and commercial vehicles cumulatively. Our credo is sustainable growth. This year we want to grow by at least a tenth of a percentage point. We made a huge leap from 2015 to 2016, increasing market share by 0.5 percentage points. The fact is that in our business, every tenth of a percent has to be hard fought for.

What does that mean in absolute numbers?
In 2016 we sold 3,000 more vehicles than in 2015. This year, after ten months, we are 1,600 vehicles better. It would be nice if we could finally say that we sold 5,000 more cars in two years than before.

You have always stated three percent as your long-term target for return on sales for the retailer. What about this? Have you come close to meeting this requirement?
We are well on our way to achieving two percent this year. That would be a significant increase compared to the previous year. We were at 1.5 percent.

That is clearly below the target.
A third of our partners make more than three percent plus. This shows that our goals are ultimately feasible and realistic. For those who are not yet ready, things must continue to move in the right direction. In other words: continuous improvement.

How long-term is this three percent goal?
This can also be achieved in three or four years. A solid foundation is essential. Small, steady steps are important, and we have been absolutely on the right track in this regard over the last two years.

How do you know that you are on the right path?
Above all, our dealers’ willingness to invest. We have always said: When retailers make money, they automatically invest in resources and in the brand. We are currently experiencing an investment boom. If we can ensure continuous growth, then we will also invest in the brand.

Including the agencies and service points, you recently had a total of two hundred partners.
That's still the case. We are stable and well positioned there.

How many dealers are currently Ford stores?
Nine.

Do you have quantitative goals? Are you saying in three years we want to have 20 partners with Ford stores?
No. With these nine partners we cover Austria excellently. Of course, one or the other can still join in.

Is there a dealer that no longer meets the high standards for a Ford store? The one that wobbles and you want to take it away from?
There are annual audits. If someone can no longer or does not want to meet the standards, then the consequences are clear.

They have always emphasized the “Power of Choice” for the end consumer. One gets the impression that Ford is not as focused on alternative drives as other manufacturers, especially not on electromobility. What are you waiting for?
I don't see it that way. We were already on the market with the Focus Electric in 2013, and we were among the first. We tried it, and we just decided it was too early. For us as a volume brand, it is essential that the vehicles are practical and affordable. We have a clear roadmap for how we want to get started in 2020. We have to ensure that both range and infrastructure and, above all, affordability are respectable. As a volume brand, we want and have to sell these vehicles in terms of volume.

Don't you see the danger that the end consumer will locate the e-mobility competence in other brands rather than in Ford if you are relatively late?
We are the clear number two in the USA and also stand for electromobility. But in general everything can change. Ten years ago people still said: buy a diesel! As a panacea, so to speak, as a solution. Now everyone is complaining about diesel. In ten years, electromobility may be the focus of criticism.

Then you shouldn't do anything new because it could go wrong.
I am convinced that electromobility will become an important part of the overall drive mix. But it will definitely not completely displace combustion engines. Perhaps fuel cells will be the hot topic in the next five years. For us, “Power of Choice” also means researching in all directions and not focusing too one-sidedly.

The new Mustang is coming next year. Just an image product, or can you also make money with it?
We sell about 300 units a year. This is extremely good for the sports car segment. In addition, the Mustang is of course an excellent image carrier. The Mustang conveys a tremendous amount of emotion. And that is exactly what is important in our business. If it's all about Excel sheets and the price, then it's no longer fun. Emotion is essential.

What advice do you have for car dealers? What should they focus on?
What will make the difference is customer access. Those dealers who manage to build customer relationships and retain customers at the dealership will be the winners.

“When retailers make money, they automatically invest in resources and in the brand.”DANIJEL DZIHIC, GENERAL DIRECTOR FORD AUSTRIA