Like other Big Three automakers, Ford Motor Company is losing market share and hemorrhaging layoffs in the face of Toyota's astounding ascendancy. The storied automaker is still profitable, due to trucks like the F-150 and its global business that includes Mazda and Volvo, but unless management is able to win back the loyalty of the American consumer, Ford will continue to lose market share to Japanese manufacturers.

To meet the challenges of this highly competitive environment, Bill Ford is promising big changes at Ford Motor Company. The CEO believes that the American auto industry must save itself by saving the planet--and that means producing more hybrid vehicles. The new Ford perspective theorizes that eco-consciousness will create strong bonds with customers--even though the average car buyer isn't playing along just yet. Nevertheless, the famously granola-crunching head honcho is pouring billions of dollars into environmentally safe factories and innovation-oriented processes, while hiring on spokes-Muppet Kermit the Frog to give Ford's image a friendly makeover.

It remains to be seen whether or not Ford can reconnect with consumers and earn back loyalty that has shifted to Japanese automakers. As Ford is learning from the sluggish sales of its larger hybrids, it isn't easy being green. Analysts say the price difference between SUVs and their hybrid versions--$3,500 for the Escape--is too steep for price-conscious buyers. But if Bill Ford's green revolution resonates with enough consumers over the next decade, the Dearborn, Michigan automaker could recover its all-but-defunct reputation as a pioneer in the industry.