Fusion/Fiesta/Taurus Officially Cancelled - Page 23 - Ford Inside News Community
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post #221 of 510 (permalink) Old 04-30-2018, 07:13 PM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

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Originally Posted by steffy44 View Post
I know nothing about the auto industry in terms of margins or costs but it does amaze me that they are exiting a market where they sold almost a half a million cars. I guess they believe that enough of those customers will transition to SUVs to make up that lost profit, and allow Ford to invest in EV developmet
That transition has already begun, and a ton of sedan sales are to rental fleets...which sully the numbers, somewhat.

The good news is that the new architectures seem equipped with the kind of flexibility that could allow Ford to respond to changing trends more quickly than before. That said, some long-time Ford fans like myself are dealing with some PTSD as we're told-AGAIN-that our market doesn't need some cool vehicles they sell elsewhere.

It gets a bit maddening.

If GM can justify Buick, and if Honda can justify Acura, we can damned well have Mercury back.
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post #222 of 510 (permalink) Old 04-30-2018, 07:46 PM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

Ford says cars lose money, so they're gone
AutomotiveNews
- Nick Bunkley - April 30, 2018


DETROIT — Alan Mulally told Ford Motor Co.'s leadership team in 2008 that the automaker wouldn't have a sustainable business if it didn't reduce its dependence on big pickups and SUVs.
Ford's CEO today, Jim Hackett, is taking the company in the opposite direction
...

...UBS analyst Colin Langan estimates that Ford loses $800 million a year selling small cars in North America.
[ = not all that much ]
In contrast, Ford indicated that it made more than $3 billion [ie 3-thousand-million] in the first quarter alone on the "high performing" parts of its business, which Shanks described as "trucks and most utilities."...

...Light trucks accounted for 68 percent of U.S. sales in the first quarter of the year. LMC Automotive expects that number to be nearly 73 percent by 2022 — with trucks making up 84 percent of GM's U.S. volume, 92 percent of Ford's and 97 percent of FCA's.

And actual consumer demand for many cars might be even weaker than recent sales numbers suggest. Polk registration data obtained by Automotive News show that a third of the Fusions sold in 2017 went to fleet buyers, with 19 percent ending up on rental-car lots.

Dealer reaction**
Despite that trend, losing the Fusion and other sedans will be tough for dealers to stomach, said Chris Lemley, owner of Sentry Auto Group near Boston. Lemley called the decision "a short-sighted overreaction to a shift in the market" that "will become a self-inflicted wound that wastes decades of hard work."

He said such a reaction a decade ago would have meant gutting Ford's lineup of pickups and SUVs, which weren't selling amid projections that gasoline could soon be $6 a gallon or more. "But Ford's leadership demonstrated the good judgment to hedge its bets," he said in an email, "recognizing that not all predictions of the future will come true."...

...Past mistakes
Mulally plotted Ford's pivot toward small cars after gasoline prices spiked and Ford's pursuit of fat profits during the SUV boom of the 1990s and early 2000s resulted in losses that compounded as the economy worsened.

Farley insists that Ford is not repeating the mistakes that ultimately plunged two of the Detroit 3 into bankruptcy and took the Blue Oval right to the brink. He said the industry has "fundamentally changed" since then, in a way that makes traditional cars a bad bet.

"Customer view and experimentation on the utility side is so much more broad," Farley said. "Utilities are the preferred body style. This wasn't the case before the downturn."

Another difference, Farley noted, is how much the fuel-economy gap between sedans and crossovers has closed, due to technology such as Ford's turbocharged EcoBoost engines. The 2018 Fusion has a combined EPA rating of 27 mpg, compared to 26 mpg for the Escape, which has considerably more cargo space and versatility.

But he also conceded that getting out of some segments that still represent high volumes — automakers sold 1.8 million midside cars in 2017 — carries some risk for the company and its dealers, especially among entry-level buyers.

"We think we can tempt some of those customers with an image upgrade," Farley said. "Where Ford does best is where we play to our strength of emotional products."

GM said it's not planning to follow Ford's lead, though it reportedly is studying whether to eliminate some slow sellers, such as the Chevrolet Sonic and Impala. A GM spokesman, Jim Cain, said Ford's abandonment of mass-market sedans "gives us an incredible opportunity to further narrow our gap to Ford in the profitable commercial vehicle segment. It will also make us and the remaining competitors much stronger by weeding out weaker competitors."

Lemley, the Massachusetts Ford dealer, said he's experienced other vehicle lines being killed and is skeptical that customers will remain as loyal as management seems to expect.

"Eight years ago, Ford Motor Co. announced it was killing Mercury," he said. "It assured us not to worry, because there would be no problem taking care of Mercury customers at Ford dealerships — those customers would just buy Tauruses and Fusions."

- - - - - - -

** Dealer hearsay from B0N:
Just got off the phone with my local Ford dealer. I bought several cars from the sales manager when he was a salesman and we developed a relationship from that. I called to express my disappointment with FoMoCo, knowing he could pass it up the line.

Bottom line: Ford has created a wealth of bad public image from this little announcement. His words to me were that there is a 5 to 1 ratio of negative comments concerning them dropping all the cars except Mustang and that bastardized Focus thing. This very well could be regional; but just like in an election, we count too.

He towed the company line with "Just keep an open mind at what's coming up in the future", but he knew as the words were coming out of his mouth that would probably not be the case.

.
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post #223 of 510 (permalink) Old 04-30-2018, 08:26 PM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

Same news different wording...
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post #224 of 510 (permalink) Old 04-30-2018, 09:50 PM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

My local Ford dealer has 273 new vehicles in stock. Only 6 Fiestas, 7 Fusions, and 10 Tauruses. Losing those vehicles won't hurt it too much.
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post #225 of 510 (permalink) Old 04-30-2018, 10:18 PM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

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Originally Posted by ehaase View Post
My local Ford dealer has 273 new vehicles in stock. Only 6 Fiestas, 7 Fusions, and 10 Tauruses. Losing those vehicles won't hurt it too much.
And it really does go back to profit, not volumes. Fiesta, Fusion and now Taurus are so heavily discounted, that profit is min at best.
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post #226 of 510 (permalink) Old 04-30-2018, 10:49 PM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

Bringing a Sportback to replace their sedan lineup sort of sounds like the time they introduced the Transit Connect to "get back into the minivan market".
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post #227 of 510 (permalink) Old 05-01-2018, 05:52 AM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

Cutting a part of your line up that loses $8M a year sounds like a good decision.

Interested in what those 16 BEVs could be. Im guessing they are mostly variations to the range, @wingsnut, with some new nameplates. How many of each would you estimate?
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post #228 of 510 (permalink) Old 05-01-2018, 07:42 AM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

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Originally Posted by Falc'man View Post
Cutting a part of your line up that loses $8M a year sounds like a good decision.

Interested in what those 16 BEVs could be. Im guessing they are mostly variations to the range, @wingsnut, with some new nameplates. How many of each would you estimate?

16 BEVs? Really? Let me make a list of the nameplates Ford will have for 2020 in NA...

1- EcoSport
2- Focus Active
3- Baby Bronco
4- Escape
5- Edge
6- Mustang
7- Bronco
8- Explorer
9- Expedition
10- Mach 1
11- Ranger
12- F-series

13- Lincoln MKC (or whatever it will be renamed)
14- Lincoln Nautilus
15- Lincoln Aviator
16- Lincoln Navigator
17- Lincoln Continental

So... Ford needs to put some kind of electrified power plant in almost all its 17 nameplates for 2020 to achieve this goal.

P.S.: the future Ford line up looks even worse when we list and see what they will be selling in 2 years.... I still can’t believe it .
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post #229 of 510 (permalink) Old 05-01-2018, 07:48 AM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

Quote:
Originally Posted by 2b2 View Post
Ford says cars lose money, so they're gone
AutomotiveNews
- Nick Bunkley - April 30, 2018


DETROIT — Alan Mulally told Ford Motor Co.'s leadership team in 2008 that the automaker wouldn't have a sustainable business if it didn't reduce its dependence on big pickups and SUVs.
Ford's CEO today, Jim Hackett, is taking the company in the opposite direction
...

...UBS analyst Colin Langan estimates that Ford loses $800 million a year selling small cars in North America.
[ = not all that much ]
In contrast, Ford indicated that it made more than $3 billion [ie 3-thousand-million] in the first quarter alone on the "high performing" parts of its business, which Shanks described as "trucks and most utilities."...

...Light trucks accounted for 68 percent of U.S. sales in the first quarter of the year. LMC Automotive expects that number to be nearly 73 percent by 2022 — with trucks making up 84 percent of GM's U.S. volume, 92 percent of Ford's and 97 percent of FCA's.

And actual consumer demand for many cars might be even weaker than recent sales numbers suggest. Polk registration data obtained by Automotive News show that a third of the Fusions sold in 2017 went to fleet buyers, with 19 percent ending up on rental-car lots.

Dealer reaction**
Despite that trend, losing the Fusion and other sedans will be tough for dealers to stomach, said Chris Lemley, owner of Sentry Auto Group near Boston. Lemley called the decision "a short-sighted overreaction to a shift in the market" that "will become a self-inflicted wound that wastes decades of hard work."

He said such a reaction a decade ago would have meant gutting Ford's lineup of pickups and SUVs, which weren't selling amid projections that gasoline could soon be $6 a gallon or more. "But Ford's leadership demonstrated the good judgment to hedge its bets," he said in an email, "recognizing that not all predictions of the future will come true."...

...Past mistakes
Mulally plotted Ford's pivot toward small cars after gasoline prices spiked and Ford's pursuit of fat profits during the SUV boom of the 1990s and early 2000s resulted in losses that compounded as the economy worsened.

Farley insists that Ford is not repeating the mistakes that ultimately plunged two of the Detroit 3 into bankruptcy and took the Blue Oval right to the brink. He said the industry has "fundamentally changed" since then, in a way that makes traditional cars a bad bet.

"Customer view and experimentation on the utility side is so much more broad," Farley said. "Utilities are the preferred body style. This wasn't the case before the downturn."

Another difference, Farley noted, is how much the fuel-economy gap between sedans and crossovers has closed, due to technology such as Ford's turbocharged EcoBoost engines. The 2018 Fusion has a combined EPA rating of 27 mpg, compared to 26 mpg for the Escape, which has considerably more cargo space and versatility.

But he also conceded that getting out of some segments that still represent high volumes — automakers sold 1.8 million midside cars in 2017 — carries some risk for the company and its dealers, especially among entry-level buyers.

"We think we can tempt some of those customers with an image upgrade," Farley said. "Where Ford does best is where we play to our strength of emotional products."

GM said it's not planning to follow Ford's lead, though it reportedly is studying whether to eliminate some slow sellers, such as the Chevrolet Sonic and Impala. A GM spokesman, Jim Cain, said Ford's abandonment of mass-market sedans "gives us an incredible opportunity to further narrow our gap to Ford in the profitable commercial vehicle segment. It will also make us and the remaining competitors much stronger by weeding out weaker competitors."

Lemley, the Massachusetts Ford dealer, said he's experienced other vehicle lines being killed and is skeptical that customers will remain as loyal as management seems to expect.

"Eight years ago, Ford Motor Co. announced it was killing Mercury," he said. "It assured us not to worry, because there would be no problem taking care of Mercury customers at Ford dealerships — those customers would just buy Tauruses and Fusions."

- - - - - - -

** Dealer hearsay from B0N:
Just got off the phone with my local Ford dealer. I bought several cars from the sales manager when he was a salesman and we developed a relationship from that. I called to express my disappointment with FoMoCo, knowing he could pass it up the line.

Bottom line: Ford has created a wealth of bad public image from this little announcement. His words to me were that there is a 5 to 1 ratio of negative comments concerning them dropping all the cars except Mustang and that bastardized Focus thing. This very well could be regional; but just like in an election, we count too.

He towed the company line with "Just keep an open mind at what's coming up in the future", but he knew as the words were coming out of his mouth that would probably not be the case.

.
1) Expecting non-competitive products to be profitable in a competitive market is Stupid, and feels like an Easy way for ford to Quit.
2) Allowing your car to become Worse in class efficiency, then bragging about the Small difference between their CUVs and cars is Bull$%^&

While Ford stood still the competition moved forward. Ford led with EcoBoost now every competitor has a better version of it on newer and lighter vehicles.

Launch and Abandon won't stop until Ford stops Quitting when things get tough.
Attached Images
File Type: jpg worst in class.jpg (239.5 KB, 10 views)
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post #230 of 510 (permalink) Old 05-01-2018, 09:43 AM
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Re: Fusion/Fiesta/Taurus Officially Cancelled

I really don't see a way around it. Honestly, why continue to invest in platforms that simply won't sell in any numbers 8-12 years from now? You would have to sell considerably more vehicles over a shorter period of time to recoup investment. ICE platforms are dead men walking. Ford is smart to cut investment now and move on. Ford sells, what, less than 400k sedans a year in the US? Tesla could do that with 2 models if they could get production ramped, at a considerably higher ATP. Ford is still way behind the times on the electrical front (good lord, beaten to market by FCA? How shameful), regardless of what Wings claims. They have 1 plug-in, the Fusion (they already killed the C-MAx), which they're killing, and 1 BEV, the Focus, which is also dead, and of which Ford sells fewer in a year than Tesla sells in 3 days. If they're leading, they're definitely leading from behind.

Some times drastic measures are required from massive misjudging of the market. What an absolute disaster of planning. And, it's a shame about the Mach 1. I was hoping for something stunning like a low-slung shooting-brake or wagon, more of a slightly-downsized far-more evocative hi-po Flex, but apparently, according to Wings, it is a bloated Edge EV instead, soon to join the EQC, E-Tron, iX3, and I-Pace in the battle for generic BEV CUV styling (also note that Ford is entering into the fray, instead of Lincoln, again, a mind-numbing decision).
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