Ford Sticking With BP Relationship

The long-standing relationship between Ford Motor Co. and BP plc does not appear to be in jeopardy, despite the energy company's massive oil spill in the Gulf of Mexico.

But marketing experts say the disaster could negatively impact the environmentally conscious auto maker.

“I hope (Ford) takes a look at (the partnership),” says University of Detroit-Mercy marketing professor Mike Bernacchi. “If they're not, something's wrong. If there were ever a time for an evaluation, it is now.”

Ford and BP defend their relationship by noting the auto maker has no connection to the spill, which poses a major threat to sensitive habitats and industries such as fishing and tourism.

There is no “link between the spill (our exploration and production business, upstream) and a lubes and fuels technology, development and business markets partnership (downstream),” BP says in an e-mail to Ward's.

Against this backdrop, industry analysts say the long-term benefits of an alliance outweigh even the repercussions of BP's portrayal as an environmental villain. “It's a problem, but not a killer,” says Dave Cole, chairman of the Center for Automotive Research in Ann Arbor, MI.

Ford says there are no plans to discontinue the relationship, the financial terms of which have never been disclosed.

“Ford Motor Co. and BP have a long-standing cooperation aimed at developing technology and other solutions to benefit automobile and energy consumers worldwide,” the auto maker says in a statement to Ward's.

“This includes working together to develop innovative engine-manufacturing lubricants made from renewable vegetable oils,” the statement says. “This relationship continues today.”

While there is no question Ford has nothing to do with the spill, associating itself with a company that has admitted responsibility for one of the largest ecological disasters in recent history could prove damaging, Bernacchi says. The auto maker has worked too hard establishing itself as a “green” company to risk losing the reputation by associating with BP.

Ford Chairman Bill Ford is a “very pro-environment guy,” Bernacchi adds. “This is in many ways a disaster for (Bill) Ford as well, because he has to maintain that face, that image and reality, and has to be aggressive in doing it.”