Can this Man Save Ford?

Freeman Thomas has a record of rescuing brands—the VW New Beetle, the Audi TT, the Chrysler 300. Will the Interceptor save his new employer?

by David Kiley

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Freeman Thomas almost always has a good time at the Detroit Auto Show. And this year was no exception.

The director of Ford Advanced Engineering Design Studio, with locations in California and Michigan, had two vehicles on display at Ford's giant show space at Cobo Hall in downtown Detroit: The Ford Interceptor and the Ford Airstream "people mover." While "show cars" developed under his leadership sometimes elicit reactions ranging from "what's that thing?" to "Whoah!" Thomas has a track record to back up his audacity.

Let's not forget that he led the Chrysler team that developed the show car that led to the Chrysler 300, easily the most influential design of the last decade. And at Volkswagen and Audi, he had a direct hand in designing the Concept One, which went on to become the New Beetle, as well as the car that became the Audi TT. Both those cars are credited with rescuing their brands from ruin and possibly oblivion in the U.S.

At Ford (F), he is working under circumstances similar to those he found at Volkswagen (VLKAY) and Chrysler (DCX). Like the designer's two previous employers, Ford is running for its life. It has been restructuring itself since 2001, trying to make consistent profits. It is losing big money and won't return to the black until at least 2009. Some industry observers even speculate that Ford's new chief executive, Alan Mulally, has been brought in to prepare the automaker for a breakup. Things are that bad.

But there is recognition at Ford that the one surefire way to make money again as it resizes itself by cutting employees, factories, and health-care costs is to give the company's designers a freer hand to excite and engage buyers. The carmaker might be onto something. Take the Chrysler 300. That car entered the sleepy, moribund category of the "D car," a designation that reflects sedans bigger than a Toyota Camry and Ford Taurus. Think Toyota Avalon, Ford Crown Victoria, Buick Lucerne. Bankers' cars. The 300 sold in excess of 100,000 units a year for about two years without a single incentive other than a small financing deal that cost Chrysler $250 per car. That's unheard of among domestic automakers. The 300, by some estimates, earned Chrysler around $400 million a year all by itself.

Likewise, Volkswagen was on the verge of abandoning the U.S. market. But the Concept One literally kept the fires burning from 1994 until 1998, when the New Beetle arrived and reignited interest in Volkswagens of all kinds.

Thomas took time to chat about the show and his designs with BusinessWeek senior correspondent David Kiley at the Ford stand at the North American International Auto Show.

How does the show stack up for you? Have you had time to walk around?

When you walk through the show, there are two camps: There's a camp of confusion and a camp of really good editing—good surface development and creating a holistic picture. And I believe we are in that camp. The idea we are after with our concepts here is to be able to tell a story at 300 feet away.

Tell me about your thinking on the Ford Interceptor. It looks a bit like a continuation of the theme started with the Ford 427 a few years ago.

When I walk around the show I ask myself: Why would I buy it? What attracts me? We believe the Ford Interceptor answers that question for people and that it passes the 300-feet test. The high belt-line of the car gives the driver a feeling of being a little mysterious. Contrast that with, say, a Range Rover, where the driver is up high in the seat and the belt-line is low. I have always felt the Range Rover looks a bit like a royal coach. You are out there in a Range Rover.