Being very close to the business on a daily basis with my job, I'll make this easy for ya, dealers don't make any money on cars any more. Everyone gouges the crap out of prices on cars, dealers making $400 on a Fiesta, isn't worth it to them !! The trucks are were the money is and that's a good decision on their part. Most people are now driving small to full size SUV's and trucks theses days. People want to carry lots of stuff and people around, do you remember the old STATION WAGONS of the past? Here is your new versions of them, and people are buying them like crazy. Look it up. You have a Ford Escape for example that you can buy for $25 K, holds plenty of stuff, gets 25 mpg's, and looks pretty cool, and they make some money selling it . Don't forget Ford is keeping their bread and butter in the US and will still be selling cars overseas, so they are not out of the car business, just not over here. With some pretty cool products coming out from Ford over the next couple years, they will be fine !!
Ford is in a free fall
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I guess once you go Mazda you never go back.
If it's not selling then why make it?
Cause no one wants you back
Do they have crossover only road racing yet?
I would ecstatic to make $400 on a Fiesta.
Except I dont believe they arent selling solely because no one wants cars. They have definitely let their cars get dated. When you do that, it is fairly common knowledge your sales will suffer. The problem is they COULD improve them and gain sales but they chose the cost cutting route instead.
Maybe it will work out for them in the end or maybe it will be a huge blunder. Time will tell.
And fashion is too. The colored non cargo shorts are back in style in a big way. Back in my elementary school and middle school days we rocked those heavily. Those and the deck shoes.
Well that is the question.
Do I spend $500 million to improve a product to then only make $520 million for a net profit of $20 million?
There is more to a car then just the raw cost of materials and assembly. Crash Testing, Emissions Certification and the thousands and thousands of hours of design work, market testing, advertising. At some point you just throw your hands up and say Не трахайте заботу.
As I also mentioned earlier - could this be a play on words? PT Cruiser was a "Truck" but the average person would call it a car and think of it as one.
Nissan Juke sells like hot-cakes and its about as Much an "SUV" as a Mini Cooper. I'm curious what it's classified as per CAFE/EPA. Another good example is the Subaru Crosstrek. It's a Impreza, just more SUV looking.
Tons of information on this and it basically has been resulting in "perform to the metric" instead of a "measure your performance" .
Corporate average fuel economy - Wikipedia
I also take announcements like this with a grain of salt. Evo 11 was supposed to be a Hybrid, R36 Hybrid GTR was supposed to be out this year, GM is going all Eletric, Tesla is going to take over the world, blah blah blah.
is it against the rules to go around the profanity filter if you have to use google translate
You do make a good point. They are going to be selling the focus active, which appears to be similar to the other CUV/car hybrids you mentioned.
I just wish they would have staggered dropping nameplates to better gauge how customers would react. Dropping almost all car name plates at once is pretty jarring.
The Juke is one ugly ass vehicle.
OP, thank you for the write-up. I will send it to F shareholders that I know, who are mostly older and scratching their heads. I'm a Sedan guy, I have two. CTS-V and a Impala. I think this move by Ford sounds like it will be great for GM.
Do you know if Lincoln will keep selling Sedans? Logic says they will.
Do you know if Lincoln will keep selling Sedans? Logic says they will.
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So I hear !!
The point of cheaper cars is to build brand loyalty in younger buyers that can't yet afford or yet want an SUV. Lose that and you very well may lose a new generation of buyers that will take their loyalty elsewhere. I've purchased 4 new Fords since 2014, all cars. Ford is forcing me to buy elsewhere.
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Ford sold 900K F Series vehicles in the U.S. in calendar year 2017.
Honda and Toyota sold a combined 1.1 million Civics, Corolla, Accords, and Camrys in the U.S. in 2017. We all get that the F-Series is the basis of Ford's North American operation, but to completely cede the Sedan market in the U.S. is a strategic blunder.
For one, the market is cyclical and tastes and demands will change back and forth. For two, Ford is giving up on a sizable chunk of the Sedan market. If they could wrest 20% of the Civic, Corolla, Accord, and Camry (CCAC) markets to sell Focuses and Fusions, they would sell somewhere in the neighborhood of 200-250K units which would make them profitable.
I admire the bold decision making, but boldly deciding to go off of a cliff is less preferable to taking a measured approach to future strategy.
Honda and Toyota sold a combined 1.1 million Civics, Corolla, Accords, and Camrys in the U.S. in 2017. We all get that the F-Series is the basis of Ford's North American operation, but to completely cede the Sedan market in the U.S. is a strategic blunder.
For one, the market is cyclical and tastes and demands will change back and forth. For two, Ford is giving up on a sizable chunk of the Sedan market. If they could wrest 20% of the Civic, Corolla, Accord, and Camry (CCAC) markets to sell Focuses and Fusions, they would sell somewhere in the neighborhood of 200-250K units which would make them profitable.
I admire the bold decision making, but boldly deciding to go off of a cliff is less preferable to taking a measured approach to future strategy.
I think the two biggest mistakes in this will be dropping the Focus and Fusion. Disputed with the Corolla, the Focus was claimed to be the best selling nameplate in the world. Then the Fusion is a very nice sedan overall, even for how old it is getting. The Japanese took a big leap forward with the new Camry, Maxima, etc, but Ford was due for a new Fusion and Focus to compete. With the roll they are on in just about everything else I feel it would be smart to keep those models around in all of their variations. If they insist on dropping them for Ford then give Lincoln a bigger budget to build a line of nicer sedans.
Bingo
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