All New Fiesta ...now including Fiesta ST - Page 43 - Ford Inside News Community
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post #421 of 441 (permalink) Old 05-22-2018, 12:44 PM
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Re: All New Fiesta ...now including Fiesta ST

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Here is a fact that may play into their recent decision on shedding low-to-zero margin sedans,
if Ford only made and sold trucks, it would be more profitable.

I think that Ford is positioning itself for a serious change in the industry in the next decade, and wants to approach it from a strong vantage point. Sounds smart, and yes, pissing off a few enthusiasts is quite low on that priority list.

...aaaaand if they overdo the truck focus (har!) and over-marginalize the brand (AGAIN), Ford could find itself very guilty of ignoring huge lessons from less than two decades back.

That's far more than "pissing off a few enthusiasts", that's an utter lack of competence.
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If GM can justify Buick, and if Honda can justify Acura, we can damned well have Mercury back.
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post #422 of 441 (permalink) Old 05-22-2018, 01:37 PM
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Re: All New Fiesta ...now including Fiesta ST

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You mean not going bankrupt to please a few dozen enthusiasts?
C'mon man. Ford was not losing money on cars. They were just not making enough to please Wall Street analysts who are busy depressing Ford shares by throwing their investment money at Tesla, you know, the car company that IS facing bankruptcy.

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They are not in the business of making people excited about cars on forums.
Apparently, they are not in the business of making people excited about cars in the marketplace.

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They are in business of making money on cars. And currently, with activist investors slaughtering CEOs everywhere in the name of dividends, there is no room for "halo cars" that make no money.
So why aren't investors slaughtering Musk and Tesla?

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The market is useless for FORD cars, and *Wall Street* (not Dearborn) expects returns and dividends in down market. So here we are.
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post #423 of 441 (permalink) Old 05-22-2018, 01:43 PM
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Re: All New Fiesta ...now including Fiesta ST

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...aaaaand if they overdo the truck focus (har!) and over-marginalize the brand (AGAIN), Ford could find itself very guilty of ignoring huge lessons from less than two decades back.

That's far more than "pissing off a few enthusiasts", that's an utter lack of competence.
Ford certainly has no intentions of selling only trucks, just stating a fact.
And that is just difficult to believe, given the huge profit margins made with CUV's lately.
I do then see how selling only trucks and CUV's in NA, will become far more profitable. Which IS actually happening. That is brilliance.
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post #424 of 441 (permalink) Old 05-22-2018, 01:50 PM
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Re: All New Fiesta ...now including Fiesta ST

Quote:
Originally Posted by wingsnut View Post
Here is a fact that may play into their recent decision on shedding low-to-zero margin sedans,
if Ford only made and sold trucks, it would be more profitable.

I think that Ford is positioning itself for a serious change in the industry in the next decade, and wants to approach it from a strong vantage point. Sounds smart, and yes, pissing off a few enthusiasts is quite low on that priority list.
If Ford only made and sold trucks, it would be a one niche player. That strategy might work and it might not. Auto manufacturers who were tiny wannabes when Ford was king, like Toyota and VW, are filling every niche - and making money doing it - while Ford is signaling retreat into one niche.

Ford is not pissing off a few enthusiasts. The enthusiasts are simply voting with their dollars and buying from competing brands. It's not personal.
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post #425 of 441 (permalink) Old 05-22-2018, 02:47 PM
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Re: All New Fiesta ...now including Fiesta ST

1. Again, Ford is not planning on selling only trucks.
2. Ford profits increasing (substantially no doubt) selling only trucks and CUV's....does not hold a grudge if sedan customers take their business (or grudge) elsewhere.
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post #426 of 441 (permalink) Old 05-22-2018, 04:11 PM
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Re: All New Fiesta ...now including Fiesta ST

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...there is no room for "halo cars" that make no money...
indubitably
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post #427 of 441 (permalink) Old 05-22-2018, 04:45 PM
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Re: All New Fiesta ...now including Fiesta ST

@2b2 Soon it will become this:
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post #428 of 441 (permalink) Old 05-22-2018, 04:53 PM
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Re: All New Fiesta ...now including Fiesta ST

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Originally Posted by wingsnut View Post
Ford certainly has no intentions of selling only trucks, just stating a fact.
And that is just difficult to believe, given the huge profit margins made with CUV's lately.
I do then see how selling only trucks and CUV's in NA, will become far more profitable. Which IS actually happening. That is brilliance.
The crossover, CUV trend will continue to soften as more lower riding EV options are available. This is simply because many single, empty nester consumers driving high riding and overpriced crossovers and CUVs, will have the option of a better handling, more powerful, more energy efficient, less costly to run EV. And what I think will hit Ford in the face is the idea that the crossover/cuv/suv is an 'image upgrade', when it will be the EV that offers that upgrade.

This is already 'proven' with large luxury performance cars where the Model S outsells all it's price/segment competitors combined. Model 3 is bringing that same trend to the midsize segment for sedans.

This becomes even more true as gas prices creep up to where it now cost over $50 to fill my 3-series. Just cutting that fuel cost in half offers $100 monthly to go toward the vehicle I want, instead of the petroleum company. That's $1,200 a year back in my pocket. Crossovers/CUVs/SUVs might bring more profits to the pockets of the automaker, but EVs bring more dollars to the pockets of the consumer through ongoing savings.

However, there will still be a market for the large SUVs with ICE hybrid drivetrains for some time until the EV infrastructure is more complete.
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post #429 of 441 (permalink) Old 05-22-2018, 06:08 PM
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Re: All New Fiesta ...now including Fiesta ST

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Originally Posted by Bloggin View Post
The crossover, CUV trend will continue to soften as more lower riding EV options are available. This is simply because many single, empty nester consumers driving high riding and overpriced crossovers and CUVs, will have the option of a better handling, more powerful, more energy efficient, less costly to run EV. And what I think will hit Ford in the face is the idea that the crossover/cuv/suv is an 'image upgrade', when it will be the EV that offers that upgrade.

This is already 'proven' with large luxury performance cars where the Model S outsells all it's price/segment competitors combined. Model 3 is bringing that same trend to the midsize segment for sedans.

This becomes even more true as gas prices creep up to where it now cost over $50 to fill my 3-series. Just cutting that fuel cost in half offers $100 monthly to go toward the vehicle I want, instead of the petroleum company. That's $1,200 a year back in my pocket. Crossovers/CUVs/SUVs might bring more profits to the pockets of the automaker, but EVs bring more dollars to the pockets of the consumer through ongoing savings.

However, there will still be a market for the large SUVs with ICE hybrid drivetrains for some time until the EV infrastructure is more complete.

WHEN gas prices spike up much more than $3, then Ford will be in a great position when it starts introducing hybrids across it's entire lineup. That will be a far more attractive option, than over priced, limited use BEV's.
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post #430 of 441 (permalink) Old 05-23-2018, 03:47 AM
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Re: All New Fiesta ...now including Fiesta ST

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Originally Posted by wingsnut View Post
WHEN gas prices spike up much more than $3, then Ford will be in a great position when it starts introducing hybrids across it's entire lineup. That will be a far more attractive option, than over priced, limited use BEV's.
As long as they have a hybrid priced as much or less than the $24K base C-Max Hybrid.
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