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Is Ford's End Right Behind Chrysler's?

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Comments

  • grbeckgrbeck Member Posts: 2,358
    jeyhoe: As for the VeraCruz being better - that's subjective. Let's compare sales figures in a few months.

    By his standards, Lexus is in trouble, too, because that test said that the VeraCruz beat the Lexus.
  • john_324john_324 Member Posts: 974
    Exactly. I love it that people hold up the renaming decision as an example of Mulally's inability to do his job.

    As if all Ford really needs to turn it all around right now is a couple of the *right* decisions, some good memos, and bang, Ford's on par with Toyota in 2008. Come on.

    The renaming IMO is a no-brainer. Easy, and sends a signal that he at least understands the history of what Ford did well.
  • drfilldrfill Member Posts: 2,484
    Save it for a redesign. Sends negative messages to the suckers, I mean early-buyers, of the 500. And Freestyle. And Zephyr. And Montego.

    There really is no right decision on that. A mid-gen facelift, with new names and engines is fine, but the vehicles will not get full value for these changes in the mid-gen. :mad:

    Waiting for a model change would've been ideal. I don't think Ford has time to wait for the right time.

    I question whether they know anything about the concept of "timing", or "market strategy". :sick:

    That comparison, BTW, between a Hyundai and Lexus is a joke, and is mere filler. Only a buffoon would cross-shop those two vehicles. Hyundai called in some favors on that one! :confuse:

    DrFill
  • dtownfbdtownfb Member Posts: 2,918
    <<The 500 name had a recognition factor around 30% - the Taurus name has a 80% recognition factor. There are millions - yes, millions - of satisfied Taurus owners who never knew the 500 existed (or didn't care) but who are excited about the "new" Taurus. Let's come back to this discussion in about 6 months. I guarantee a significant increase in sales for the Taurus compared to the current 500.>>

    I have to respectfully disagree with you on this decision akirby. This move is a clear sign of how desperate Ford is for car sales. The Taurus name no longer has a positive feel. Ford ruined the Taurus with the "dolphin" design and then letting it become a rental car for the past 3 years. In the mid 90s the Taurus was the number one selling car in America. Compare that to the Taurus reputation in 2006. I think you are also forgetting that Ford announced they were killing the Taurus. If the 500/Taurus does increase in sales, it will be because of the improvements to the car and increased marketing not because of the Taurus name. Something Ford should have done the first time they released the vehicle. When you release a new car like the 500 and you HAVE to use an old engine because of prior contracts and poor engine development, that is bad management. The 500 was a nice vehicle that would have been a great car with 25 more hp. The Freestyle should be selling more but when is the last time you've seen a commercial for it.

    Mulally has made some good decisions by bringing over the European models to the US. Of course someone needs to explain to me why Europe has the better vehicles then the US???? I'm just not sure Ford has the time or money to complete the turnaround. They are still a "bloated" company that is trying to get their production to match their sales. As you know this leads to fewer incentives and higher profits (see Honda).

    Hyundai versus Lexus.....whatever. A year ago I would have thought Hyundai was poised to do more damage but lately their radio commercials in my area remind me of the Mitsubishi sales tactics a few years ago: "Bad credit, no problem", "Extend your warranty to 20yr/200k miles", "Credit amnesty". It seems like their cars are showing up more on the rental lots too. But a 10yr/100k warranty is nice and the Sonata is a good vehicle.
  • john_324john_324 Member Posts: 974
    "Of course someone needs to explain to me why Europe has the better vehicles then the US????"

    Yeah, me too. Makes me sad as an American that the Fords here aren't better than the Fords everywhere else in the world... :(
  • bpizzutibpizzuti Member Posts: 2,743
    I think someone somewhere around here said it would just be too expensive because people in the US won't pay for a small car with premium features and it would be more expensive to build them here or something.

    Then dodged the comment that they're not really built here anyway, they're build in Canada and Mexico (so health care cost differences don't exist) and premium-ified cars like the Mazda3 sell quite well here.
  • john_324john_324 Member Posts: 974
    I've always thought Ford's strategy for the middle market was two-fold: 1) go after traditional buyers who won't buy foreign and 2) go after the very low end of the market, buyers who value low price above all else.

    But now, the buy-American-only generation is dying if not dead as a market force, and there are tons of very nice, loaded "certified preowned" used cars available for the price of a new stripper domestic.

    Maybe part of Ford's strategic re-think will be realizing that the real middle market these days is willing to shell out decent money for a quality car. :confuse:
  • usedcarsonlyusedcarsonly Member Posts: 3
    I've always thought Ford's strategy for the middle market was two-fold: 1) go after traditional buyers who won't buy foreign and 2) go after the very low end of the market, buyers who value low price above all else.

    Great point, but they are going about it all wrong. Take the Fusion ads, for example. They have Car and Driver and Road and Track ads saying that consumers are liking it over the Accord and Camry. J.D. Powers also ranked it higher. But the strategy of going after the Accord and Camry buyers is insane. Toyota and Honda demand the most loyalty out of any manufacturer. They usually only trade their customers for one another. Very few defect to domestic brands.

    Ford should have used these results as a side note and appealed to the other buyers. They were going after 1 & 2 when they're sitting at 9th! Go after 3-8, move up, develop some credibility, then make a move after the big fish.

    But now, the buy-American-only generation is dying if not dead as a market force...

    Check this out, says the same thing -- Buy American

    Maybe part of Ford's strategic re-think will be realizing that the real middle market these days is willing to shell out decent money for a quality car.

    If I had Mullaly's ear, I would tell him that the best thing that Ford could do to really get back into the game is to scratch profits from Ford Motor Credit for 12-18 months and put out finance incentives (not cash back, which would hurt the brand and used car values) to attract a new batch of buyers. There are first time buyers programs and college grad programs, but Fords aren't well publicized, nor are they very good.

    Sell more cars by offering something nobody else does. And I mean WAY more than anyone else does. When GM had Employee Pricing, everyone else did soon after. When Ford came out with 0% for 72 months, everyone else did within a week.

    Ford, be agressive, stop selling us on quality (for now) and start giving us a reason to buy a Ford that NOBODY else can offer.">link title
  • british_roverbritish_rover Member Posts: 8,502
    Ford should have used these results as a side note and appealed to the other buyers. They were going after 1 & 2 when they're sitting at 9th! Go after 3-8, move up, develop some credibility, then make a move after the big fish.

    There is something to be said for going into a fight picking the biggest, baddest, meanest guy in the group and kicking him right in the teeth.
  • steverstever Guest Posts: 52,454
    Today's rumors say that Jag and Land Rover are on the block and that Ford has hired Goldman Sachs and Morgan Stanley to help package a deal explore options. (CNN).

    The story also says that a sale of Volvo isn't being explored (at least with this process), just the luxury brands.
  • jchan2jchan2 Member Posts: 4,956
    on the block makes sense. As a package, though, the only company that I think would be interested would be Hyundai, and they seem to think that developing a luxury model and perhaps a luxury brand in house is cheaper than buying the problems and red ink associated with Jag/Land Rover.

    Keeping Volvo makes sense; it's making money, and Ford has access to Volvo's safety technology.
  • jchan2jchan2 Member Posts: 4,956
    They're chasing after the Accord and Camry, but so is the Saturn Aura.

    And what will happen next year when there is a new Accord on the market and people think that the Accord is worlds ahead? The same happened with the Sonata and Camry. People thought the Sonata would give the Camry a run for it's money until the new 07 models came out, and then the Camry became the front runner.

    I think Saturn and Ford have a better shot at going after the Koreans (Sonata, Optima) and maybe the Altima. The Camry/Accord just have too many loyal buyers, and a new Accord is in the works.
  • usedcarsonlyusedcarsonly Member Posts: 3
    jchan2, absolutely. That's what I was trying to say, but not as eloquently.

    When you're 9th on the edmunds list, you don't push yourself as better than #1 and #2. First, beat the competition just ahead of you, climb the ladder, build momentum, then go after the top dogs.
  • fezofezo Member Posts: 10,386
    I still figure Ford would do well to kill Mercury, which has no unique models, and replace it with Volvo. It would give the folks that are now Lincoln Mercury dealers some real different product and they'd only have to buy off a few Volvo dealers in the process. Not like when GM killed Oldsmobile and had to pay off all the Olds dealers - there were lots more of them!
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • drfilldrfill Member Posts: 2,484
    I appreciate the thought, but this isn't the prison yard (unless you work for Ford :P ).

    Fusion doesn't have the rocks to punch the leaders in the teeth. Nor does Ford.

    Hyundai and the Domestics are in a similar boat. Build credibility first. Make sure your sold customers know you have a hot new product that is competitive.

    If you sell for Ford, send mailers to your Explorer, F-150, and Expedition customers promoting the new Fusion and re-introduced Taurus. Give your customer base reason to stick around. The easiest sale to make is to your sold customers. Ford has a nice size base. Start building at home.

    Hyundai has a tougher road, theoretically.

    Throwing high and tight to Albert Pujols may not be the best career move. Anyone want to be Brad Lidge?

    And the Ford ads clearly call the Fusion AWD, and sports sedan, and more fun to drive than Accord/Camry. Maybe it should target Altima, if that's there angle?

    Ford searching for traction, can't fault them on that. Smaller, slower prey would be wise for now. ;)

    DrFill
  • nippononlynippononly Member Posts: 12,555
    Automotive News is reporting that all three brands, including Volvo, are for sale. And that Fiat was very close to buying Jag and LR, then broke off at the last minute.

    http://www.autonews.com/

    Dump the whole crowd, dump Mercury, and just fix Ford and Lincoln. That should be their plan. They will need the money from the sale, every penny, just to fix those two brands.

    Word is now that the Ranger will likely go in the dumper after next year, no replacement planned, as they apparently need to build 100K per year just to break even. Sheesh. What is going on over there? How can they be so much worse off than GM?

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • bpizzutibpizzuti Member Posts: 2,743
    They'd be insane to dump Mazda...All the cars that aren't Volvo based are Mazda based.

    Mazda makes a compact pickup. They can just Americanize it.
  • bumpybumpy Member Posts: 4,425
    The BT-50? That's a derivative of the Ford Ranger that everyone else in the world gets. Ford just needs to bring in the global Ranger as knock-down kits or something.
  • jchan2jchan2 Member Posts: 4,956
    Ford packaged Jaguar, Land Rover, and Volvo together into an entity called "Premier Automotive Group" and then put together an IPO? Could that possibly raise more cash than just selling the thing to another automaker? Ford could keep say, a 20% share in the new entity, while being able to raise cash by selling the other 80%. The cash would have to stay with PAG though, but the money could go towards new products for Land Rover/Jaguar/Volvo, which could be passed down into Ford after a few years... (sort of like how the previous generation S80 platform has been transformed into the Five Hundred/Taurus)

    Mercury needs to be dumped though; not much of a point in it. I know it brings extra sales, but at what expense? If they want Lincoln to be a credible luxury brand, the dealerships can't have a $15,990 Milan parked next to a $40,000+ Navigator.

    I wonder if Ford has had someone run the numbers on closing Mercury and whether they decided against it...
  • drfilldrfill Member Posts: 2,484
    http://www.edmunds.com/insideline/do/News/articleId=121668

    This is as good a place to start as any. No diesel. No 6.2 V8. No V6.

    The 2009 Ford F-150, according to edmunds/Inside Line, will be a refresh, not a redesigned wngine lineup, which won't make the transition until 2011. The truck was redesigned for the 2004 Model year, and is already at the bottom of the pack, and falling fast.

    If Ford can't get the F-150 right, with the demise of the Mustang slated for 2009, and the Ford Focus undergoing a wretch of a redesign, Lincoln and Mercury rocketing to the fleet market, Ford's Deathwatch starts now!

    DrFill
  • drfilldrfill Member Posts: 2,484
    Ford expects to lose its grip on second place in the American market sometime this year, when it is overtaken by Toyota. Ford&#146;s market share has fallen to 17.5 percent last year, from 25.7 percent a decade ago. By the end of the year, Ford&#146;s internal projections show that the company may even fall to fourth place, behind Toyota, the Chrysler unit of DaimlerChrysler and General Motors, the market leader.

    This quote comes from this article from last year:

    http://www.nytimes.com/2007/01/25/business/25cnd-ford.html?ex=1327381200&en=6fc08f5f537a8aa6&ei=5088&partner=rssnyt&emc=rss

    Having worked for Ford, back in the day, I had seen the writing on the wall. Now my fears are coming to fruition.

    Ford Escape and Edge are moderate success stories. Fusion isn't replacing Camry or Accord anytime soon.

    The future couldn't be more hazy for Ford. :sick:

    DrFill
  • grbeckgrbeck Member Posts: 2,358
    That information is not necessarily accurate. Here is a list of engines, along with debut dates, from an insider on another website:
    The truck will launch in 2008 with:
    4V DOHC 3.7l V6 - Port Fuel Injected (i.e. non-Direct injected)(about 280 ft.lbf at 2000 rpm) (not sure about transmission)
    3V SOHC 4.6l V8 with 6speed auto (Explorer combo - 292 hp and 300 lb.-ft)
    3V SOHC 5.4l 6speed auto (Expedition combo - 300 hp and 365 lb.-ft ) - it is very likely Ford Re-wroked this engine for increased power and torque so the numbers are likely to go up.
    NO BOSS ENGINES

    2009 1/2 Model (February 2009) will add:
    2V SOHC 6.2l V8 BOSS engine with 6speed auto (about 400hp)

    2010 Model (fall 2009) will add:
    DOHC 4.4l Common Rail Diesel with CGI block (315hp and 520 lb-ft)
    4V DOHC 3.5l V6 - Twin Turbocharged Direct injected (Twin Force - 350hp, 380 lb-ft at 2000 rpm)

    2011 or 2012 model will add:
    4V DOHC 6.2l V8 - Twin independent variable cam timing, twin turbocharged, direct injected (Twin Force - over 650 lb - ft)

    There will be a V6 - the all-new 3.7 liter - available from day one.

    I have also not heard any credible information that the Mustang is going away after 2009. There is supposedly a rework planned.
  • drfilldrfill Member Posts: 2,484
    That will discredit, basically, this site, and Ford's suppliers, is that correct?

    Who would that be? :surprise:

    DrFill
  • john_324john_324 Member Posts: 974
    "with the demise of the Mustang slated for 2009"

    You must mean that the current Mustang is going to be redesigned in 2009, right?

    The Mustang is not going away in 2009, or frankly anytime in the near future.
  • british_roverbritish_rover Member Posts: 8,502
    Land Rover people I have talked to confirmed the diesel F-150 thing although they won't give me a firm time line.

    Remember that diesel engine is based on the CGI block TDV8 Euro spec Range Rover engine.
  • drfilldrfill Member Posts: 2,484
    I meant in value, with the '09 Camaro hitting next summer. So really '08.

    My sources tell me a redesign is not until the following year.

    Not that the current Mustang is doing box-office business. Prius outsells it rather easily. :(

    DrFill
  • british_roverbritish_rover Member Posts: 8,502
    Yeah no SMUG problem at all there.
  • grbeckgrbeck Member Posts: 2,358
    He's a poster on blueovalnews.com who has been credible in the past. Whether he is credible this time...we will find out soon enough.

    Although if Edmunds.com is correct, then Ford really is toast.
  • grbeckgrbeck Member Posts: 2,358
    Comparing Prius sales to Mustang sales is hardly an apples-to-apples comparison.

    The F-150 easily outsells the Prius...does that mean that the Prius is hardly doing "box-office business?"
  • drfilldrfill Member Posts: 2,484
    Mustang is a household name, over 40 years. American icon, and most are cheaper than the Prius!

    It says a lot about the direction of both cars that they are running in opposite directions. :(

    Mustang was a volume seller when I worked for Ford.

    DrFill
  • john_324john_324 Member Posts: 974
    To me anyway, it doesn't seem that much of a stretch that in a time of rising gas prices, a small commuter car that gets great mileage is outselling a thirsty, rwd sport coupe that most people buy as a second, "fun" car... :confuse:

    Dr. Fill...when you worked at Ford, how did Mustang sales stack up against those of the Ford sedans?
  • drfilldrfill Member Posts: 2,484
    Prius is no sedan, so I'm not getting your point. :confuse:

    Ford Focus was busy being recalled :sick: .

    DrFill
  • john_324john_324 Member Posts: 974
    No point, just a question.

    Seems to me that a good indicator of the health of the Mustang might be the proportion of Mustang sales to those of more practical vehicles. The first step would be looking at how it stacks up internally at Ford.
  • jd10013jd10013 Member Posts: 779
    hey apparently need to build 100K per year just to break even. Sheesh. What is going on over there

    UAW

    Ford and the UAW are set to start talk july 20th. should be very interesting. What happens then will probably have more of an effect on fords future than anything else. If they get rolled again, wouldn't be surprised if they just let the company go into bankruptcy in order finnaly break the UAW, and get to dump their pension obligations.
  • grbeckgrbeck Member Posts: 2,358
    If Ford goes bankrupt, the Ford family loses its stake in the company (as do all shareholders). For that fact alone, I seriously doubt that management will use bankruptcy as a tactic to rid the company of the UAW.
  • jd10013jd10013 Member Posts: 779
    No they don't. they file for bankruptcy protection, get to work out a debt repayment plan, hand all their pennsion headace's over to the governments pension gaurante fund and more or less force whatever concessions from the union that they want. It exactly what some of the airlines did.
  • steverstever Guest Posts: 52,454
    Not necessarily. United is the example I can think of off-hand. United shareholders got left holding the bag in the recent Ch. 11 (and taxpayers got stuck with UAL pensions). (link)

    The Fords have a different class of stock than mere mortal shareholders, but I think they could still be at risk.
  • joel0622joel0622 Member Posts: 3,299
    Just what did you do for Ford when you worked for them? I sure hope it was not Consumer Relations or Brand Recognition. Did they fire you or something? Usually the only people I see that down talk a company so bad is some one who was let go.
  • drfilldrfill Member Posts: 2,484
    Of working "On the floor" for almost 2 years, also as an Internet Sales Manager.

    This was right after GM started the 0% campaign, which set this "Fire Sale" mentality into motion, as Ford couldn't wait to try to top them. So the car became the afterthought, and how much will the dealer give away in profit became the point of the sale.

    Plus the Exploder/Tombstone Tire controversy always helped you hold "gross". :cry:

    Ford has been rocketing into the crapper ever since my departure, so, if they did fire me, it would've been the umpteenth poor decision they've made over the last decade. :sick:

    They need me back, just to slow the bleeding!

    Not that I'd go, but a little groveling never hurt anybody. :blush:

    DrFill
  • joel0622joel0622 Member Posts: 3,299
    So then you did not work for Ford Motor Company, you worked at a Dealership. Big difference, but it all makes sense now.

    The only dealers who did not do well during the 0% and Family Plan sales events were those who handled them improperly. We had record months during each event and our profits were strong. It was just a matter of playing the hand dealt to you and concentrating on the departments it strengthened, F&I and UC.

    It also allowed us to have record used car months the months following the events because of all the trades we took in.

    It looks to me as though you parted company with a dealer under less then favorable terms and are on a vendetta to bash FMC, allot of your info is less then accurate i.e, the 6 cyl engine, the Mustang going away, F-Series trucks loosing leadership, etc.

    As I have told other folks here at Edmonds, if Ford was riding the train to BK I doubt seriously my DP would be spending $15,000,000 right now in order to build one of the largest Ford Dealerships in our state. He would probably stay at our current location which has been a Ford Dealer for over 60 years and ride out this forthcoming Doom and Gloom forcast you have predicted.

    I will just you to my "I told you so" list when we become one of the most succesfull auto makers in the world again.
  • drfilldrfill Member Posts: 2,484
    But you don't have to work in Dearborn to be a Ford employee. People who work for a dealer are Ford Employees.\

    The dealers AWLAYS make a killing, through used cars, trades, and financing. The only one's who really don't get paid are the salesmen. They are used as dispensable pawns in the game.

    The dealer was not the problem. As a matter of fact, the Floor Manager was one of the best people I've ever worked with, in or outside of the business. And he practically begged me to stay, which is rare for a rather average salesman (He was an ex-pro football player, and we'd talk football, ad nausium). :)

    I know what the problem was, and it wasn't the dealer.

    Anyone who's seen Ford's track record over the last decade doesn't need a super-computer to figure that out. ;)

    DrFill
  • volvomaxvolvomax Member Posts: 5,238
    But you don't have to work in Dearborn to be a Ford employee. People who work for a dealer are Ford Employees.\

    Nope, you were pretty much a dealership employee.
    Big difference.
    Sounds to me like you didn't like working for your dealership,and that has colored your views.
    Some dealers take care of their salespeople,some don't.
    I know some Ford salespeople that are making a good living,even today.
  • drfilldrfill Member Posts: 2,484
    Your reading comprehension needs some work. Maybe your in Dearborn, running the ship? that may explain some things.

    I guess Ford is a pretty small company, with a couple of buildings in Dearborn. Who knew they were such small potatoes? :surprise:

    Oh, and I never got a check with the Ford emblem on it either. No. Didn't happen. ;)

    DrFill
  • volvomaxvolvomax Member Posts: 5,238
    Regardless of how big Ford is,it ain't big enough that you ever worked for them.
    You worked for a DEALER.
    A DEALER is an independent company that is franchised by Ford to sell its products.

    You are like the clerk at 7-11 saying he works for Anheuser-Busch because he sells beer.
    There is nothing wrong with working for a deaelr, I've done it for 16 yrs.
    But, I know enough not to claim that I work for the motor company.
  • dtownfbdtownfb Member Posts: 2,918
    Joel, just because they are investing in a larger dealership means nothing as far as Ford heading into BK. I highly doubt the Ford name will ever go away. Too much history, too many products and the name alone is just too valuable. Plus if there is any downsizing of the dealerships the bigger ones will survive.

    I'm not in the doom and gloom forecast for Ford...yet. It's not looking too good and the hill is steep.. Like GM I think they finally "get it". They now understand you have to take care of your home market before expanding overseas. The products at home have to be as good as what you are selling overseas. Now the issue is do they have enough money to fund this turnaround? Are there products good enough to grab more market share in a declining new car market where the competition is not just Honda and Toyota but also Hyundai, GM, Mitsubishi, Nissan, etc.? Can they make a profit on a car (sounds dumb but they haven't demonstrated that since the 1990's Taurus yet)? Can they build a fuel efficient car that doesn't rely on 40% sales to fleet and rental?

    It should be fun. The good part about it is the consumer benefits from improved products.
  • drfilldrfill Member Posts: 2,484
    I didn't work for AutoNation.

    Ford was on my checks. Ford was in the dealer's name. They are one and the same.
    I had to take Certification from Ford to work there! Corporate drug testing policy. I represent Ford and the dealer! I have two bosses! What part of that don't you understand? The dealer is not independent of Ford. Everything they do has to be approved by Corporate! This is easy stuff! :confuse:

    This was not 1099 work. Come on. Wake up! :mad:

    DrFill
  • volvomaxvolvomax Member Posts: 5,238
    If your W-2 says Ford Motor Company,you work for Ford.
    If it says Joe Blow Ford, you work for the dealership.

    Still,if your delusions of grandeur require that you work for Ford, I won't argue with you any further.
  • drfilldrfill Member Posts: 2,484
    If your W-2 says Ford Motor Company,you work for Ford.
    If it says Joe Blow Ford, you work for the dealership.


    This isn't Sesame Street. Few things in life, and nothing at Ford, is that simple.

    Moving on.....

    DrFill
  • british_roverbritish_rover Member Posts: 8,502
    Unless you worked for one of the handful of Ford Owned corporate stores, Manhattan is the only one I can think of off the top of my head, then you didn't work for Ford.

    That is like me saying I work for Land Rover. I may work with a lot of Land Rover employees as various regional reps are in the store from time to time and I send them reports on various things but I don't work for them.
  • drfilldrfill Member Posts: 2,484
    The dealer works for Ford, and I work for the dealer. So they both have an impact on my employment.

    The drug tests, certifcations, spiffs, etc. are all for Ford, not for my dealer. I have to pass Ford's standards and the dealer's. It's indirect, but far from a silent partner in the relationship. You can't take Ford out of the equation. It's not that simple.

    I had two bosses. And I liked one boss more than the other. ;)

    DrFill
This discussion has been closed.