Ford Business Decision

[Newview01]

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

Interesting nonetheless.

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

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]

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]

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

[muledriver]

Seems a mistake not being in the full spectrum market.

[Newview01]

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]

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.

[CaberTosser]

And what of their current cut of the police car market? That would hurt to give up unless they plan on only selling police crossovers & SUV's

[bloopbloob]

Originally Posted by CaberTosser

And what of their current cut of the police car market? That would hurt to give up unless they plan on only selling police crossovers & SUV's

I think nearly every single marked police vehicle here is an explorer now. Makes sense to me, if you need to drive in snow and chase down 4×4 trucks and SUV's.... car doesn't make much sense

[CaberTosser]

Originally Posted by bloopbloob

I think nearly every single marked police vehicle here is an explorer now. Makes sense to me, if you need to drive in snow and chase down 4×4 trucks and SUV's.... car doesn't make much sense

Lots of the rebadged Taurus's /Police Interceptors here in the city. they do come in AWD configurations, which I think should definitely be the case for any Canadian Dept.

https://www.fleet.ford.com/showroom/police-vehicles/

[270person]

Ford won't be the last domestic manufacturer to pare down their lineup drastically I'd bet. All of them have been getting their arses handed to them on a plate by Honda, Nissan, Toyota, + the Euros. Pretty easy to see why. I don't know why anyone would opt for a domestic model car over an import for any reason. Reliability and looks are at minimum 15 years behind the imports with the exception of the reworked muscle car offerings from the domestics.

P.S. to the guy driving the Camaro on Henday today, trying to run with the M3? Oops. Those siderolls must have been fun huh?

[Austin]

Cut and tighten the belt to save a bunch of money only to reward those at the top with a big pay day is my bet. Strategic move of pocket lining.

[Reeves1]

Been a die hard Ford fan my whole life.

But some of their decisions make me scratch my head.

I do know they don't care about Canada much. They sell more vehicles in Texas than all of Canada.

I also know that new ones are now out of reach for many up here now.
My 2012 truck is the last new one for me.

Next one will be a 1972 4 door long box......if I can find a properly & fully restored one !

[10aciousB]

Times have certainly changed. Gone are the days where your only SUV options were the big, gas guzzling V-8 Ford, the big gas guzzling V-8 GM, or the big gas guzzling V-8 Dodge. Even the midsized V-6 offerings in the 80's and 90's, were not great. Now that lighter uni-body SUVs get every bit as good mpg's as their sedan counterparts, and offer more versatility, usable space, and endless seating/storage configurations, make it no wonder the sedan is dying...

[Trochu]

Originally Posted by 270person

All of them have been getting their arses handed to them on a plate by Honda, Nissan, Toyota, + the Euros. Pretty easy to see why.

Thats not quite accurate. For example, there isn't a single German car currently outselling, YTD though March, the Fusion, Focus, or Mustang in the US.

Do the Accord, Camry, and Altima sell well, of course, but Ford moved over 200,000 Fusions last year, sold over 300,000 in 2014 and 2015, and its currently the fourth best selling car in its class, outselling the Jetta, Sonata, Malibu, Optima, etc. So, if one is considering incorrect info as factual, yes, its easy to see why Ford is making this move. When one considers factual information however, its a bit harder to understand.

[FCLightning]

Originally Posted by Trochu

Thats not quite accurate. For example, there isn't a single German car currently outselling, YTD though March, the Fusion, Focus, or Mustang in the US.

Do the Accord, Camry, and Altima sell well, of course, but Ford moved over 200,000 Fusions last year, sold over 300,000 in 2014 and 2015, and its currently the fourth best selling car in its class, outselling the Jetta, Sonata, Malibu, Optima, etc. So, if one is considering incorrect info as factual, yes, its easy to see why Ford is making this move. When one considers factual information however, its a bit harder to understand.

Doesn't matter how many you are selling if you aren't making money on them.

[Trochu]

Originally Posted by FCLightning

Doesn't matter how many you are selling if you aren't making money on them.

Agreed. And they likely aren't, or enough anyways, as they are cutting them. I'd be curious to see some numbers though. With a MSRP of $22,215 and 209,623 sold in the US alone last year, that's estimated sales of $4,656,774,945.00 they're walking away from. Hard to think they couldn't find some worthwhile profitability in there somewhere.

And Ford will still be selling cars, just not in North America. So they are still going to bear the brunt of the R&D costs, just removing themselves from one of the worlds largest markets.

[10aciousB]

Originally Posted by FCLightning

Doesn't matter how many you are selling if you aren't making money on them.

Bingo!!

[brslk]

Didn't they stop selling the Taurus (the best selling car at the time) for awhile?

[Tom Pullings]

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]

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]

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]

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]

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......

[Trochu]

Originally Posted by Big_Willy

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

I think some of those have already been axed.

[bobtodrick]

Can't imagine NASCAR is happy to see this.

[Redneck 7]

I’m a big ford fan, whole life and I can understand why they’re doing this, I’m not upset about it but to me having, for example, 15 vehicles in production. That’s a lot of engineering and safety testing for each one, more engineers and designers. Even more body panels to get manufactured since lots of the cars and aren’t built on similar bodies. So I think by them doing this they can cut out A LOT of over head. So they cut it down to 7 vehicles for manufacture, just have to focus on very few to improve and such.

[Trochu]

Originally Posted by Redneck 7

I’m a big ford fan, whole life and I can understand why they’re doing this, I’m not upset about it but to me having, for example, 15 vehicles in production. That’s a lot of engineering and safety testing for each one, more engineers and designers. Even more body panels to get manufactured since lots of the cars and aren’t built on similar bodies. So I think by them doing this they can cut out A LOT of over head. So they cut it down to 7 vehicles for manufacture, just have to focus on very few to improve and such.

Can you understand it if they retain all that overhead because they're still manufacturing the cars in other markets, just not selling it in North America?

[Tom Pullings]

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.

[Redneck 7]

Originally Posted by Trochu

Can you understand it if they retain all that overhead because they're still manufacturing the cars in other markets, just not selling it in North America?

Haha yeah I forgot that detail... maybe it comes down to manufacturing costs as well for North America. Cheaper to produce the extra vehicles in other countries, also probably lower safety standards too. But either way I’ll still own a ford.

[Blastoff]

This will eliminate a lot of jobs in a lot of the car market manufacturing, maybe Trudope & Trump can bail out Ford!
When we start paying big money for fuel in the coming years will these Eco cars come back, not sure?