PILOT SPIN
Spin Zone => Spin Zone => Topic started by: invflatspin on April 25, 2018, 04:45:08 PM
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https://www.yahoo.com/finance/news/ford-stop-selling-every-car-205243027.html
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Guess the Next Quarters earnings need a boost.
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It's an interesting move. They've obviously done the analysis and come to a determination that the market is moving away from sedans while holding strong in the SUV and truck market. With a low profit margin, it makes sense to cut where they aren't seeing a worthwhile return on investment. We'll see if the strategy pays off.
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It's an interesting move. They've obviously done the analysis and come to a determination that the market is moving away from sedans while holding strong in the SUV and truck market. With a low profit margin, it makes sense to cut where they aren't seeing a worthwhile return on investment. We'll see if the strategy pays off.
Yet Mercedes, BMW, Lexus, Infiniti, and other can sell sedans. That being said, people seem to be SUV crazy.
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Yet Mercedes, BMW, Lexus, Infiniti, and other can sell sedans. That being said, people seem to be SUV crazy.
You just named luxury car manufacturers that sell to a different market. This is one company's decision to try and address a problem they have, only time will tell if it works. They may decide to re-enter the sedan market if this doesn't work or they find a way to increase their profit margin.
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I think it’s a smart move. I’m a Ford F-150 guy, and my wife and daughter have SUVs.
SUVs are more comfortable, easier to ingress and egress, and hold more stuff. I think the days of the sedans are history.
If I ride in someone’s sedan, it’s a strain on the knees and back to step up from having your ass dragging close to the ground. (3 knee surgeries haven’t helped.) getting into and out of trucks is just easier, and the visibility is superior. Win/win.
I never understood the mid-life crisis sports car thing. These guys look ridiculous getting in and out of them. Hope they enjoy looking at my bumper.
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I can't recall the last sedan or coupe I've had, except my collector cars. Everything utility for the family and I have been either hatchbacks, or SUV or - gulp, a mini-van. Current use fleet is a Mini countryman hatch, Subie Forester hatch, and the quad-cab Dodge truck. Sedans are dead, except the rental fleet.
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You just named luxury car manufacturers that sell to a different market. This is one company's decision to try and address a problem they have, only time will tell if it works. They may decide to re-enter the sedan market if this doesn't work or they find a way to increase their profit margin.
Not in my area. They are the average person's car here, but sedan sales are down for Toyota, Honda, Nissan, as well as GM, Ford, and Chrysler. People just seem to want SUV's, and I can appreciate that. I have a Jeep, so I am guilty too.
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I'm still getting parts for my Yugo, so I'm good to go.
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I'm still getting parts for my Yugo, so I'm good to go.
The big rubber bands are still available? ;D
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I'm still getting parts for my Yugo, so I'm good to go.
Yugo? You must be rich. My Trabant is still running great though.
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Yugo, Trabant? Wow, you guys are top tier. I'm still keeping my Zaporozhets on the road by bailing wire and spit.
(google it)
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Just in time for gas prices to come up. I've seen this movie before, it never seems to end well.
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Two guys in my neighborhood just bought new Ford trucks. One told me the dealer said 85% of his sales are trucks. Personally, I feel encouraged about our country when people, especially men, buy trucks. The spindly man-bun gammas in their Priuses creep me out.
Go after me, libs! I don't care!
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The spindly man-bun gammas in their Priuses creep me out.
Love it. Got me back to my copy of Brave New World. But I submit that the Man-Buns are more like Deltas. They lack the focus of Gammas.
Deltas: Wear khaki; helicopter attendants, cold pressers, screw-cutters, package packers; are mass produced and have no individuality. Essentially, they are a human assembly line. They are capable of learning a single task and doing it repetitively, but not much more than that.
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How many of those 'men' buying trucks are trying to make up for their pussification?
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How many of those 'men' buying trucks are trying to make up for their pussification?
Prolly some, but not as many as one would think. I've had a truck in my stable since I was 23 after leaving the service. They are just so gosh darn useful. Modern trucks with the crew cab are almost as comfy as a modern sedan. Why not have the giant bed for anything and everything for a few thou more? Screw fuel econ...
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While moseying around on the highway today, I've come to the conclusion that this is a tactical mistake by Ford. They are chasing profits, and when a major company starts only paying attention to the bottom line, and less to their contribution to a market, it almost always ends badly. I would say what Ford would be better doing is not to abandon the sedan market to Mitsu, Lexus, Audi and Kia but to make a better damn sedan that buyers will want to buy. I'm a died in the wool Ford supporter, and have always tried to buy Ford. Why give up a market share because you can make more profit on fewer sales of high markup segment?
I spend a modest amount of time in biz school studying this stuff, and all the case study scenarios where this market evacuation was done, eventually led to poorer sales overall. Ford needs to re-invigorate their sedan line up not kill it off. That Audi A4, and the small sedan from Lexus is a very nice car for folks who want a car with four doors. There is NO REASON Ford can't engineer something like that. I know they tried were the Merkur, and the XR4Ti, and various other products, but they never seemed to really put their imprimatur of importance on them.
So, fine - sell trucks, SUVs, and the little Focus tool. But - giving up to Camry, Altima, Sedona, Charger, etc isn't the answer. Just make a better Taurus, and don't call it a Taurus. Disassemble that A4 Audi and the Lexus and go to school. Giving up the market is bad mojo.
Edit; To add, that little Subie WRX sells like whiskey on Friday night. Why can't Ford build the same thing as the WRX? They can even give a sport mode with more ponies and AWD, and a turbo. If Subie can do it, Ford should be able to do it.
YMMV
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I drive a V6 Taco. But previous to that, only sedans or compacts. Once I bought a house, I realized the ridiculous utility of trucks. Then I got a track only 2 stroke bike. Then I got a boat. So yeah, I like trucks now.
PS - have a special fondness for the Impreza since watching them in the World Rally Championship.
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My Turbo Yugo will blow them away.
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I prefer my MG.
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You just named luxury car manufacturers that sell to a different market. This is one company's decision to try and address a problem they have, only time will tell if it works. They may decide to re-enter the sedan market if this doesn't work or they find a way to increase their profit margin.
Honda sells lots of Accords and Civics, and Toyota lots of Camrys. All three of these cars have been re-designed in the last few years. What Ford has told the market is they're not willing to invest the money to compete with these new cars and concedes that market to them. This will be fine, except gas prices are starting to inch up again. Add another Katrina and Ford is left holding the bag.
As for sedans, I like them. We have a Fusion 2.0 Ecoboost turbo and it's a very competent car. I suppose our next sedan will be an Accord. Oh well.
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I think this is a good move on Ford's part. Saying that "if others can do it, then so can Ford" is hollow. If everyone tries to build the best sedan, then each of their market shares will be reduced.
Reminds me of when Libs say that if companies like Costco can get the best employees by paying higher salaries (living wage), then everyone can get the best employees by paying higher salaries. It doesn't work that way.
It also reminds me of the advice I heard once: "In order to improve your overall results, figure out what you don't do well, then DON"T do that thing".
If Ford, GM and others decide not to compete in the sedan business, then prices and profits will rise for those remaining in the segment. If prices and profits rise in that segment, then more manufacturers will get into that segment. That is how the free market works.
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I think this is a good move on Ford's part. Saying that "if others can do it, then so can Ford" is hollow. If everyone tries to build the best sedan, then each of their market shares will be reduced.
It's fine as long as gas prices remain stable. If they don't, Ford will be 1-2 years behind getting a competitive fuel efficient small car to market.
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It's fine as long as gas prices remain stable. If they don't, Ford will be 1-2 years behind getting a competitive fuel efficient small car to market.
I don't think that is as much of an issue as it was during the last gas crisis. Trucks and SUVs are already getting much better mileage. The difference between trucks and sedans isn't all that great any more.
But there is still a difference. If democrats regain control, then we can expect fuel prices to skyrocket again, and your prophesy may come true.
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I don't think that is as much of an issue as it was during the last gas crisis. Trucks and SUVs are already getting much better mileage. The difference between trucks and sedans isn't all that great any more.
But there is still a difference. If democrats regain control, then we can expect fuel prices to skyrocket again, and your prophesy may come true.
I'm not sure about that. The difference in gas mileage may have gotten wider (http://www.pewtrusts.org/en/research-and-analysis/fact-sheets/2011/04/20/driving-to-545-mpg-the-history-of-fuel-economy), and that disparity is the important point if gas prices skyrocket.
But hopefully we're not subject to the huge price spikes now that we're producing so much oil here in the US? Not sure.
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But hopefully we're not subject to the huge price spikes now that we're producing so much oil here in the US? Not sure.
We do produce a lot of oil, and natural gas here, but the prices are still affected by the world market. If there is a hiccup anywhere in production, even outside the U.S. our energy prices, including gasoline will go up across the board.
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I think it’s a good move. Vehicular tastes evolve. Last night I was watching the drama “The Americans” (awesome show by the way) set in the 1980s during the Cold War. My wife and I both noticed how most of the vehicles were what we now call “boats” with big, square corners, massive frames, etc.
During that time I had a Ford F-150. When I would drive down the Kennedy Expressway in Chicago, I had almost unlimited visibility over all the other cars.
Driving my current F-150 on the interstate in Milwaukee in rush hour today, I have many other trucks, SUVs, vans, minivans, and crossovers in my view.
If people wanted the big Lincoln Town Cars or Ford Crown Victorias, Ford would build them.
By the way, I used to have a Buick Regal, Mercury Capri, Pontiac Grand Am, Pontiac 6000, and a Mercury Sable before moving to SUVs and pickups. Never looked back at sedans. Yuk.
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Sedans are for carrying people, not stuff. SUVs carry people and stuff. I think that's why sedans are fading. Try getting a good-sized cooler in a sedan trunk. The changeover began with hatchbacks. So much more convenient for lifting stuff in and out. When choosing a vehicle, you want versatility, unless you're going to be just ferrying people around.
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Hey, there are plenty of mfgs making a very nice living off sedans. The Camry has been a leading sale model for decades. Plenty of people haven't caught on to the SUV/truck deal. Lots of new drivers want that typical family sedan, even though they don't have kids. I see gobs of sedans when I go into town. The high rear deck and window line, and the tall trunk are mods to the sedan to solve the 'hatchback' issue.
I bet Subie, and Toyota, and Nissan are laughing their asses off at Ford right now. Killing the segment is going to reduce lot traffic as well. The more people you can get in the door the greater chance of selling something, anything. Now - I know starting next year unless I want a Mustang or a truck, forget about Ford.
Stupid plan, and it's going to cost them.
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I'm not sure about that. The difference in gas mileage may have gotten wider (http://www.pewtrusts.org/en/research-and-analysis/fact-sheets/2011/04/20/driving-to-545-mpg-the-history-of-fuel-economy), and that disparity is the important point if gas prices skyrocket.
But hopefully we're not subject to the huge price spikes now that we're producing so much oil here in the US? Not sure.
At least not until Democrats are in power again.
All I can think of for Ford is that they must recognize that they don't have anything good except trucks and they're loosing money trying to make them. Cant' say I think this is a good strategic move. In 20 years I suspect everyone will be talking about how dumb it was for Ford to quit making cars.
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At least not until Democrats are in power again.
All I can think of for Ford is that they must recognize that they don't have anything good except trucks and they're loosing money trying to make them. Cant' say I think this is a good strategic move. In 20 years I suspect everyone will be talking about how dumb it was for Ford to quit making cars.
Car makers are process managers now. They can always have production started on a new car, with the latest engineering, sub assemblies, etc. Their assembly may say Ford on the building, but it essentially a separate entity, very similar to outsourcing.