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Discussion Starter #1 (Edited)
Ford announced internally that it has pulled the plug on the US Ford Focus Active due to tariffs. A press release will go out. Development has stopped entirely, there are no plans to assemble Focus locally.

Ford is reassuring employees that Ford is the least vulnerable to continued tariff pressures and that Ford doesn't see a need for economy cars going forward because of SUV electrification.

It's a shame, I thought the Focus Active looked sharp and it's one less vehicle for a company that doesn't have many new vehicles to launch. Obviously this means more customer attrition than predicted.
 

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https://www.at.ford.com/en/homepage/...8/8/focus.html


DEARBORN – In light of the negative financial impact of new tariffs on vehicles imported from China, Ford will not be bringing the Focus Active crossover to North America.

Despite the change, Ford remains committed to growing its product lineup – including introducing all-new trucks, utilities, hybrids and fully electric vehicles – and returning operating margins to 10 percent in North America.

Ford’s future North American lineup will better deliver the attributes consumers indicate they value most – including higher ride height, more space, greater versatility and improved fuel economy ratings.

In 2019, the all-new Ford Ranger returns to the midsize truck segment and a new F-Series Super Duty debuts. New performance models are on the way for Ford Edge and Explorer, and off-road SUVs – like the upcoming Ford Bronco – will play a prominent role.

An all-in push on hybrid-electrics will bring new capability and features to customers of high-volume, profitable vehicles like Ford F-150, Mustang, Explorer and Escape.

By 2020, Ford will have replaced more than 75 percent of its current portfolio. By 2023, the company will have more nameplates in the U.S. than it does today.

Five all-new flexible vehicle architectures will help reduce engineering time and development costs, while supporting distinct vehicles and silhouettes for distinct customers. Cross-architecture modules will help further reduce component costs and improve quality and reuse – from sunroofs to steering columns.

In addition, Ford Motor Company continues to employ more U.S. hourly workers and build more vehicles in the United States than any other automaker, plus it is the No. 1 exporter of vehicles from the United States.
 

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Ouch. I was thinking that Active would have been a good seller, as the only vehicle close to a car that Ford brand will sell in the near term.
Dammit.
I never expected it'd be a volume seller as I expected it'd be a premium offering. Oh well, ****k em if they can't take a Trump!
 

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Ouch. I was thinking that Active would have been a good seller, as the only vehicle close to a car that Ford brand will sell in the near term.
Dammit.
Oh well, looks like the Mustang will eventually be the only Ford car in the North American lineup.
@wingsnut, with the US Focus Active cancelled, which vehicle would you recommend to those looking for a sub-$24K brand-new vehicle?



PS: Ford seems eager to give Changan Ford some new customers (to offset lower sales in China?).
The 2018 EcoSport for the Philippines is imported from China (photo below), the pre-facelift model was sourced from Thailand.

-Top Gear Philippines
 

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So is this a "flip of the switch" model if/when tariffs are reduced/go away?
 

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Discussion Starter #9 (Edited)
They have stopped development on the Focus Active for the US and reassigned/pocketed those assets. So no, Focus Active is off the books permanently. It's also unlikely that the tariff situation will be resolved to Ford's satisfaction, and they certainly can't invest further with this uncertainty anyway.

It's also probable Ford will have to further cut product plans once NAFTA 2 is finalized since they may have to reduce their Mexican output.

Either way, Ford is facing extremely stiff headwinds and uncertainty, they will have to be very flexible and just ramp up the cost cutting to balance out the tariffs.

There are always solutions out there, I could even see Ford partnering with another Automaker to make products for them, especially economy products. We may just have to move Ford into a more innovative outsourcing model, especially as the market contracts for all automakers and building cars in the US becomes more expensive and new car ownership falls out of reach.
 

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Hate to say it, but I was right about Hackett.
When I listened to Fields, literally every week in his video blogs to employees, I heard confidence, direction, strategy and complete knowledge of product and it's competition. When I listen to Hackett, I still only hear a bunch of TED talk nonsense, rarely ever bringing up product.
He may not last as long as we think.
 

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Hate to say it, but I was right about Hackett.
When I listened to Fields, literally every week in his video blogs to employees, I heard confidence, direction, strategy and complete knowledge of product and it's competition. When I listen to Hackett, I still only hear a bunch of TED talk nonsense, rarely ever bringing up product.
He may not last as long as we think.
Fields' record at Ford (and Mazda) is nearly impeccable. I find it hard to believe the same guy is responsible for Ford's current problems. You know there's another side to what went on.
 

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Rough week for Ford. First the downgraded stock rating, now another questionable change to the product lineup. I guess selling my stock Monday was the right decision after all. Feels good to be out of the circus once and for all.
 

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Oh well, there's only one more rule that Ford can possibly break, a four door Mustang......
that would be one way of spreading Mustang's DNA....
 

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Oh well, there's only one more rule that Ford can possibly break, a four door Mustang......
that would be one way of spreading Mustang's DNA....
And it should be a Lincoln and a good way to introduce Lincoln to Europe and increase exports. Hey! Pass that joint back, man.
 

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Trump’s policy is making very difficult to sell cars (and trucks, utilities,Crossovers, SUVs...) in USA at an affordable (or at least, competitive) prices. He forced to reduce the production and import from Mexico. Put tariffs on the China imports. Is near to put new tariffs on vehicles from Europe. The unique opportunity is to made autos in USA. This will provoque a higher production’s costs for Ford, and vehicles more expensive for the Ford’s customers.

Today, Ford is in a worst shape than yesterday. The demise of the Focus is a hard hit to the automaker’s plan.

If you have Ford’s shares, is time to sell it. Until the new CEO will be announced, the shares will fall even more.



P.S.: seeing how the situation is worsening, the next Hackett’s cut will be the Lincoln entire division and the Mustang. I imagine the investors are pressing him to do this. Other cuts on the table? Close operations in SouthAmerica and Europe.
 

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Demise of the unprofitable Focus is not a hard hit to Ford's plan.

I have no problem dropping the Lincoln brand. Lincoln has no purpose after the Town Car died. (Mercury lost its purpose with the death of the Grand Marquis.) The F series is Ford's luxury car.

I predict 10 years now Ford will just have F series and derivatives, Transit, Explorer, Bronco, Ranger, Mustang, and a few electric cars to keep the granolas happy. I predict the Rav4 and CRV will do to Escape what the Camry, Accord, Corolla, and Civic did to the Focus and Fusion.
 

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Demise of the unprofitable Focus is not a hard hit to Ford's plan.

I have no problem dropping the Lincoln brand. Lincoln has no purpose after the Town Car died. (Mercury lost its purpose with the death of the Grand Marquis.) The F series is Ford's luxury car.

I predict 10 years now Ford will just have F series and derivatives, Transit, Explorer, Bronco, Ranger, Mustang, and a few electric cars to keep the granolas happy. I predict the Rav4 and CRV will do to Escape what the Camry, Accord, Corolla, and Civic did to the Focus and Fusion.

Is not a hit to Ford’s plan? Really? Ford was counting with the Focus Active to have something to offer to those customers that don’t want SUVs/Crossovers (is a hatchback on tilts) and to have something to offer to those customers that want a vehicle cheaper than the Escape but not so little as the EcoSport.

About the Lincoln brand... every automaker needs a luxury brand, because there are the money and profits... will be a big mistake if Ford do it. Anyway, if Hackett continue 6 months more as Ford CEO, Ford will be reduced to a local automaker limited to USA and China.
 

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Well this was expected, since the only reason Ford was to offer the 'Active' was to increase the price of a Focus and sell it in the US at a higher margin, but the 25% tax took that away and more...so it was a no go from that point.

Now I will repeat what I have said before. Sedans, hatch backs, 5-doors are not unprofitable, it is just Ford's design and limited production that has made it so for Ford. Other automakers are more successful and more profitable with a focus on shared platforms, higher low/mid price volume, and frequent new models. But Ford tried lower volume(even closing production capacity), attempting to move up market with higher pricing/trim levels and running older models too long, and getting their customer feedback from Europe or China.

Ford's better option would have been to create that 'team' that actually talked to American consumers and make BETTER sedans/hatch models, improve production capacity to costs down and volume up, margins up, with a renew schedule to match the competition.

Even though automakers are now launching more crossovers and SUVs, the tide is already turning with consumers, who are rediscovering the drive-ability and cost(purchase price/maintenance/fuel/insurance) savings of switching back to a sedan since they never needed the 'hauling' capacity of a suv in the first place. SUV/crossover sales will still outpace cars in some segments, but the transition back to sedans is also accelerating, with consumers not buying 'another' big midsize/large SUV expensive when they don't need it. The luxury car automakers understand this, and is why we are getting a several new small/midsize luxury performance sedans, that are near the price point of the consumer brand mid/large suv pricing, but luxury performance and much more fun to drive.

Ford is getting so many warning signs that their current 'plan' is not going to work out well, that a reverse of course as it relates to sedans should be coming any day now. And they may use the cancellation of the 'Active' as a broad excuse to continue sedans in the US.

Ford still has an opportunity to change course. They have done it last minute over and again, just as they are doing now with the 'Active'. Local production is necessary, and just maybe they need to focus more on building automobile manufacturing facilities, instead of more old buildings for office space, for employees they may not need if they keep down the current path.

Just looking at the rest of the automobile industry leaders, and the paths they are choosing with their products and are doing well sales and profit wise, it makes one wonder why Ford thinks they need to try and change the momentum of the entire industry and customer preferences at a time when they need to benefit from that same momentum.
 

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Bloggin,
do you think that if Ford reversed it's course of eliminating low to zero margin products, and instead continued forward investing millions to upgrade and attempt to gain some margin......that they would be better off? I am not talking sales volumes, that is easy, and they have been doing that for some time. But rather, increasing margins/profits.

I can't see a bright future in that direction. Not with all the headwinds coming in every direction.
 
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