Ford Business Decision

Newview01 · #1 04-26-2018, 09:23 AM

When will Arnie sue them for only selling "gas guzzlers" ?

Interesting nonetheless.

https://www.ctvnews.ca/mobile/autos/...rica-1.3902920

Quote:

DEARBORN, Mich. -- Ford Motor Co. said Wednesday it will shed most of its North American car lineup as part of broad plan to save money and make the company more competitive in a fast-changing marketplace.

The changes include getting rid of all cars in the region during the next four years except for the Mustang sports car and a compact Focus crossover vehicle, CEO Jim Hackett said as the company released first-quarter earnings.

The decision, which Hackett said was due to declining demand and profitability, means Ford will no longer sell the Fusion midsize car, Taurus large car, CMax hybrid compact and Fiesta subcompact in the U.S., Canada and Mexico.

Exiting most of the car business comes as the U.S. market continues a dramatic shift toward trucks and SUVs. Ford could also exit or restructure low-performing areas of its business, executives said.

The company has found another $11.5 billion in cost cuts and efficiencies, bringing the total to $25.5 billion expected by 2022, Chief Financial Officer Bob Shanks told reporters. Savings will come from engineering, product development, marketing, materials and manufacturing. The company previously predicted $14 billion in cuts by 2022.

One-third of Ford's belt-tightening will come by the end of 2020, Shanks said

Sooner · #2 04-26-2018, 09:30 AM

Heard this on Ched this morning, as a true Blue Ford guy, not sure how I feel about it. I love my Fusion

6 sp manual has made it a fun car and good Mpg. I guess their numbers show it's still a truck & Suv market.

Be interesting to see if their plan is a win or a flop. Still be a ton of used stuff out there.

Albertadiver · #3 04-26-2018, 09:36 AM

Surprising, I was looking at replacing our 2010 fusion with a newer one in the next year or two for my wife.

muledriver · #4 04-26-2018, 09:40 AM

Seems a mistake not being in the full spectrum market.

Newview01 · #5 04-26-2018, 09:50 AM

Quote:

Originally Posted by muledriver

Seems a mistake not being in the full spectrum market.

x2

There are a lot of new cars on the road every year.

MK2750 · #6 04-26-2018, 05:03 PM

Are they losing it or did Chevy take it from them.

I am an import guy but after trying most models out there I ended up with a Chevy. Nicest car I have driven in 20 years and more bells and whistles than I will ever figure out.

I took a rental Fusion out to Ram Falls a year or so ago and the trip was ruined by the car. It handled on gravel like walking on marbles and there was so much dust coming in we had to get out for air a few times.

Chevy is the fastest growing brand in NA for five years running. That must be hurting someone's bottom line.

Tom Pullings · #7 04-28-2018, 09:03 AM

I think this is a bad move. I understand the temporary advantage of focusing on the higher profit vehicles but even if you’re taking a loss on the initial sale of the vehicle there is a value in having people behind the wheel of a ford car. If someone who’’s been happy with ford but only wants a car now has to go to another manufacturer I think that’’s a loss in the long term. With all these average mpg requirements looming and a probable recession the case for cars is strong I’’d say.

Big_Willy · #8 04-28-2018, 10:18 AM

As a current owner of a Ford Fusion, I cannot help but feel disappointed by this decision. I really like my 2015 Fusion- its stylish, gets fantastic gas mileage, is comfortable, luxurious and has good power on-tap.

Yes, SUVs and CUVs are where the sales numbers are these days, but, why throw out the baby with the bath water? I drive a 2017 Ford Explorer as a work vehicle and the ride quality isn't there, the driving experience is very blah, gas mileage sucks and it has a small fuel tank to boot.

Ford sells about 200,000 Fusions per year, mostly to consumers. Ford sells about 50,000 Taurus's per year, mostly to fleets. Maybe they should have axed the Taurus and developed the Fusion further (the more flexible of the two vehicles)?

-Willy

bobtodrick · #9 04-28-2018, 10:32 AM

Quote:

Originally Posted by Big_Willy

As a current owner of a Ford Fusion, I cannot help but feel disappointed by this decision. I really like my 2015 Fusion- its stylish, gets fantastic gas mileage, is comfortable, luxurious and has good power on-tap.

Yes, SUVs and CUVs are where the sales numbers are these days, but, why throw out the baby with the bath water? I drive a 2017 Ford Explorer as a work vehicle and the ride quality isn't there, the driving experience is very blah, gas mileage sucks and it has a small fuel tank to boot.

Ford sells about 200,000 Fusions per year, mostly to consumers. Ford sells about 50,000 Taurus's per year, mostly to fleets. Maybe they should have axed the Taurus and developed the Fusion further (the more flexible of the two vehicles)?

-Willy

I agree...but from a corporate view I see their point.
Last year Ford sold over 900000 F series trucks...and say they could sell more if they had the production facilities. Trucks are the most profitable vehicles to sell...they're simpler than most cars and have more profit.
With more car buyers turning to foreign cars...and at the same time more car buyers buying trucks/suvs...corporately it's a no brainer...for now.
If public opinion ever shifts back to cars...they've just screwed themselves.

fishtank · #10 04-28-2018, 11:00 AM

Ford being giving out lots of rebates and financing subsidies on their cars to keep the sales # .... it’s a loosing battle so they just focus their capitals and production line on the trucks and suv market which they still have a big share in.

Big_Willy · #11 04-28-2018, 11:19 AM

Quote:

Originally Posted by fishtank

Ford being giving out lots of rebates and financing subsidies on their cars to keep the sales # .... it’s a loosing battle so they just focus their capitals and production line on the trucks and suv market which they still have a big share in.

Yes, indeed, I bought my Fusion with about $6000 in rebates. I could have walked 50 feet further and got $12,000 off an F150.

It's a sales game the domestic manufacturer's have created where rebates are expected because perceived value is simply not there at the ridiculous MSRP.

WHEN retail gas prices spike down the road what is Ford's fall-back product? An India-sourced EcoSport that has to be transported 1/2 way across the globe?

My guess is GM will be next. Bye-bye Sonic, Cruze, Malibu, Impala, ATS, CTS, LaCross......

Tom Pullings · #12 04-28-2018, 06:37 PM

Not to mention they’re basically just giving up and proving they can’t compete in the car market. It’s shameful for one of the oldest and most recognizable brands. Now they won’t be able to act fast enough if gas prices spike or something else causes buyers to embrace small fuel efficient vehicles again.