Soooo, What is Fords current business strategy?

[Dasfinc]

I'm REALLY curious honestly, Ford has shown to often be ahead of the curve (Surviving the bail out, offering raises this year already, recovering profitability more quickly than the other 2 of the big 3), but I'm a bit confused as to why they have basically completely dropped out of the fleet and goverment sales game this year?

Panters gone, Rangers gone, Focus/Fiesta are both 'up market' with no real stripper/cheap model available for either that would make them more attractive than say a Sonic or stripper accent/versa for rental company use.

Which leaves them all but completely out of the Taxi, Liverly, fleet, rental, and LEO markets.

I can foresee the Transit Connect and the upcoming T series vans filling the commercial market nicely that the ranger has left vacant for those businesses that don't absolutely need a pickup. But I found that the Taurus Interceptor is $2-3K more than comparable Caprice/Challengers (fleet pricing), and Lincolns offerings are all quite a bit more than the outgoing town car in fleet pricing as well. With the current economic forecast, I just don't see companies/agencies accepting these more expensive options instead of looking elsewhere first.

Has Ford decided the Margin on fleet sales is so small that it's not worth it?

Do they think their current offerings will really take-off in the markets they used to dominate with the Crown Vic/Town car/Ranger?

Or do they have something else up their sleeve in the near future before the current fleets of panthers/focii/rangers dry up? (Many agencies/companies bought up a bulk of rangers/vics and expect to keep them 4-5 years etc)

Discuss.

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[Angus]

It's more profitable to make good cars that people want and will buy as their personal vehicles.

What's not so profitable are fleet sales and stripper econo's.

 

[greasy]

To make more money than last year.

 

[Yaj Yak]

no fleet sales? you're kidding right? have you rented a car recently?

when i was with enterprise, we had every ford model represented in some aspect under the sun, short of heavy duty trucks... which there were plenty of in our box truck diviision.

we had brand new 2012 explorers, fiestas, focuses (loaded with leather, sync, nav, pan roof etc etc down to strippers), awd flex's, normal flex's, cars with and without sync, or myfordtouch, new crew cab f150s, v6 mustangs, tauruses, lincoln towncars, mks's mkx's, mkz's, fusions loaded and stripped, etc etc.

fleet is a huge part of any car company, ESPECIALLY domestic brands, where image is so huge, and to keep factories working at efficient levels, any company will continue to sell cars for fleet purposes for rental companies.

imo from a business standpoint, they are going for operating at a more efficient level than making a more profitable vehicle at a fleet stand point... its quite simple actually.

 

[Dasfinc]

no fleet sales? you're kidding right? have you rented a car recently?

I rented a car twice last year, all Kia/Hyndai options the first time, got a Fusion the second time. I'm not saying they will get no fleet sales, I'm just saying that I was under the impression that rental cars were typically still mostly stripper models. Learn something new every day.

imo from a business standpoint, they are going for operating at a more efficient level than making a more profitable vehicle at a fleet stand point... its quite simple actually.

That's what it seems, and it is simple, but it always seemed to be a battle of raw sales numbers, which is what it seems to be a fight they are backing out of for the better IMO.

Guess I could have titled the thread differently. I'm just curious how people feel about the new direction they are heading, and what kind of impact will happen from dropping the Panthers/Rangers.

 

[jason05gt]

Ford is trying to compete with the imports and not just GM.

The panther, ranger, etc. were old shity cars. Ford is investing in technology to try to differentiate their lineup compared to the competition.

Fleet sales aren't as profitable, so it's a great thing for Ford.

 

[Yaj Yak]

aren't as profitable yes, but make other sales more profitable by keeping factories in efficient levels.

 

[Dasfinc]

Ford is investing in technology to try to differentiate their lineup compared to the competition.

I still think they are taking a step backwards with the Ranger if that is the case.

From how I view it, the Global ranger would have fit their current model line up nicely (More technology, ecoboost, a more premium light truck), but I suspect they decided it would canabalize too many F-150 sales that are still highly profitable (The basic platform is technically just as old as the rangers was). I'm sure the cost to bring the machining/manufactor of the new ranger state side would have hurt it from being decently profitable for quite a few years as well, but this applies to any new car.

I would love to see the Falcon, new Ranger, and the Transit state-side. I'm glad the Transit is coming over, but the Falcon would have been a fantastic crownvic replacement IMO...

 

[jason05gt]

I still think they are taking a step backwards with the Ranger if that is the case.

From how I view it, the Global ranger would have fit their current model line up nicely (More technology, ecoboost, a more premium light truck), but I suspect they decided it would canabalize too many F-150 sales that are still highly profitable (The basic platform is technically just as old as the rangers was). I'm sure the cost to bring the machining/manufactor of the new ranger state side would have hurt it from being decently profitable for quite a few years as well, but this applies to any new car.

I would love to see the Falcon, new Ranger, and the Transit state-side. I'm glad the Transit is coming over, but the Falcon would have been a fantastic crownvic replacement IMO...

The small pickup market isn't huge in the US and Ford is probably seeing people stepping up to F150's with the base V6.

What Ford is doing with their business model is building the "car" brand. Over the past 10 years they've sold SUV's/Trucks well BUT one move in the Middle East that bumps crude up will affect that market fairly drastically. Consumers are wanting more efficient cars and until recently Ford did not have a good small/midsize volume car.

 

[Dasfinc]

They offer a 32valve 5.0 in the FPV ones now, I wonder if that's the Coyote motor.

 

[Dasfinc]

The small pickup market isn't huge in the US and Ford is probably seeing people stepping up to F150's with the base V6.

What Ford is doing with their business model is building the "car" brand. Over the past 10 years they've sold SUV's/Trucks well BUT one move in the Middle East that bumps crude up will affect that market fairly drastically. Consumers are wanting more efficient cars and until recently Ford did not have a good small/midsize volume car.

I know the market isn't huge, but it still rattles my brain that the sales leader in compact truck sales bowed out of the field.

 

[jason05gt]

I know the market isn't huge, but it still rattles my brain that the sales leader in compact truck sales bowed out of the field.

Maybe they weren't profitable sales. For example, did they have to give rebates and financing offers to move Rangers?

 

[Primalzer]

I bet a lot of the Ranger sales were fleet, which as stated before is not as profitable as consumer sales. The Ranger is old tech, and even though there was nothing "wrong" with it, it didn't fit into Ford's global scope and picture. From what I remember when the global new Ranger was first starting to get announced, it was said that it was just too big for the US, and it would've been hard to differentiate the global Ranger from the F-150. One thing I don't like about this new Ford plan is the dependence on one platform, much like Chrysler and the K-cars of the 80's, the Taurus, MKS, Flex, MKT, and Explorer all ride on the same chassis. While it is good for profits as there is less tooling that has to be created, I don't like the single-mindedness.

 

[Primalzer]

And there is a stripper Fiesta that starts at barely over $13k

 

[Dasfinc]

I bet a lot of the Ranger sales were fleet, which as stated before is not as profitable as consumer sales. The Ranger is old tech, and even though there was nothing "wrong" with it, it didn't fit into Ford's global scope and picture. From what I remember when the global new Ranger was first starting to get announced, it was said that it was just too big for the US, and it would've been hard to differentiate the global Ranger from the F-150. One thing I don't like about this new Ford plan is the dependence on one platform, much like Chrysler and the K-cars of the 80's, the Taurus, MKS, Flex, MKT, and Explorer all ride on the same chassis. While it is good for profits as there is less tooling that has to be created, I don't like the single-mindedness.

I fear that as well, I think they are going to get blindsided if they don't stop just offering different flavors of the same chocolate icecream...

Falcon, Global Ranger, Transit van, 3 new platforms, already developed, would open whole new worlds to different options... IMO they need to make the jump, spend some development money, and bring over some new platforms.

 

[Primalzer]

I would really like the Falcon up here, but GM keeps trying to ruin bringing Aussie models here, and I think that Ford gun shy.

 

[Dasfinc]

And there is a stripper Fiesta that starts at barely over $13k

Stripper Versa is just under $11k, Hyndai Accent @ $12.5.

 

[Bob Kazamakis]

Ford is pushing the Lincoln mkt as their replacement for the town car.

 

[Primalzer]

Which puts the Fiesta right there with them, and the Sonic has a base price of $13.8K so it's right there too.

 

[Dasfinc]

Sweet jesus

www.Lincoln.com

$47,225 MSRP for a towncar, they always been that high??? I guess they are still clearing them out.

Ford must have been making CRAZY money on those... The Fleet Crown Vics were like $23-24K each brand new to LEO's.

Which puts the Fiesta right there with them, and the Sonic has a base price of $13.8K so it's right there too.

Like I had said earlier, I always envisioned rental cars as the cheapest possible model of the class, which used to be the Aveo, and is now the Versa. Didn't really think rental car companies would be buying up Fiesta's over the $1300 cheaper Accent, or $2800 cheaper Versa.

 

[Yaj Yak]

my cousin has a ecoboost f150 enterprise truck right now

 

[Yaj Yak]

you realize they are buying fiestas for probably 8 or 9 k new right...

it is stupid the discounts that rental companies get. stupidlly awesome.

 

[Outlaw]

My buddy Calvin has a Fiesta rental car right now...

 

[jason05gt]

If I lived in Detroit, I'd really like to work for Lincoln. I think that Ford can, if done properly, turn the brand around. They are investing money, now they just need to build better stand alone luxury cars.

 

[THEHKP7M13]

I am at work at the moment, but rest assured DAS FINC, as a member of the tin foil hat society (according to Bob Hope) I will weigh in here when I have an ample oppourtunity to express my thoughts.