Not much, but if you look closer, it’s more than you can imagine. Their reputation is being built over a century on mechanical engineering. In today's world, this is under question. Nowadays, the value of a product in both segments is more determined by the software it contains. And this changes everything.
Ford is late to the electrification party. The more time Ford waits, the bigger the pressure is to come up with something ”extraordinary.” The challenge they face is something that every automotive brand is facing:
- Do you electrify an existing model first?
- Do you create an entirely new model?
- Can it stand a Tesla test (comparison)?
- Will the new model build a much-needed reputation?
- Will the new EV make people forgive that you are too late to the party?
The pressure is enormous. Most of the OEMs are opting for a new model, some are going with their iconic one, while very few create a hybrid of these two. Ford did the latter.
When you see Ford's official entry into the EV segment, their new (Mustang) electric car, the very first thought that you would have is - this is not a Mustang! If it is not a Mustang, why would you buy it? If I look at it as another EV on the market, there are better options out there. Tesla X comes first to my mind. If Ford has told us that it has made a Mustang-inspired EV but without calling it Mustang, I would look at it with different eyes. But to call it Pony - I cannot. Can you?
Time will tell if this was the right choice. Despite Ford's officials saying that the SUV is sold out, there were no precise figures shared yet. FYI, Tesla's Cybertruck has around 250k orders and counting.
I don't see anything wrong in electrifying first Ford's iconic model, but I would keep it as it is. Its iconic shape. Its classical muscle car status. I would show that Mustang can transform into an EV without losing its DNA. Quite the contrary, it can enhance it further. This is where I would start, but it won't be where I would end. I would then use the electrification to give Ford a license to extend Mustang DNA into different segments. Something that ICE never could. But jumping from one segment with ICE to another as an EV without building the base doesn't feel right. Mustang has credibility as a muscle car with ICE, but it yet needs to build its reputation as an EV. Maybe Ford is asking too much from their customers now. Perhaps Ford’s desire to make a splash with its first EV and show teeth to Tesla is only hurting the Mustang badge. But let's try to fast-forward into a distant future. Mustang could be one of the few models that can stand a test of time. And be Ford's only future. Probably the electric Mustang has the best chance to compete with Tesla on all fronts and all other OEMs. I can easily imagine electric Mustang SUVs, trucks, and hatchbacks. The way Ford is going about it now is to create a shortcut. I don't see that this shortcut to the future would work very well, and it might end up diluting the icon.
What all this have to do with Rolex?
Well - everything.
The same forces in the automotive industry are operating in the watchmaking. And it is not a question whether Rolex is going to make a smartwatch, the question is when. This fascinates me as someone who loves watches. What fascinates me, even more, is the speed of smartwatches taking over the people's wrists. High-end watches are losing wrist time and they will have to do something about it. A year ago, there were five people out of 10 wearing a Rolex in the senior management meeting. Today, in the same meeting, eight people out of 10 are wearing an Apple watch.
So here are some of the challenges that the high-end watchmaking industry will have to face:
- How best to integrate traditional watchmaking with the latest technology?
- Will it create a value to justify a high-end price?
- Will it last and not lose value for decades as the previous mechanical models?
- Do you create a new model, or do you transform an existing one?
I cannot wait to see how Rolex will choose to go about this, as it will have to be a masterpiece. If they decide to start with Rolex GMT-Master II Batman, I'll make it a part of my collection. Who wouldn't?
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