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Has Ford Overestimated Its Customers’ Loyalty? If So, They Are In Big Trouble



A Cox Automotive study cited by Automotive News reveals that Ford could have difficulty keeping some sedan customers in the United States after discontinuing the Fiesta, Focus, Fusion, and Taurus.

That’s because many Ford owners who took part in the survey said they would likely look elsewhere when the time comes to acquire their next vehicle. Half of them said they would switch to a new or used car from another manufacturer for their next purchase, and only 10 percent admitted they would pick a new Ford crossover or SUV.

https://www.carscoops.com/2018/08/ford-overestimated-customers-loyalty-big-trouble/
 

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Ford certainly understands the nature of customer attrition and how to best combat it while improving the bottom-line. It's a little like an apartment manager kicking people out of their leases because they can flip the apartments and get new tenants to pay more.
 

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Ranger pick up case. This is the same situation. And will occur the same. Ford customers will go to Toyota or GM. Ford will recognize the mistake and will reintroduce some sedans to the NA market a decade later. In between, GM , Toyota, Honda and Hyundai will enjoy a sales gain.
Ford needs to learn how to produce sedans for USA with profits, because not everyone want to buy a SUV/crossover. Not right now.
 

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My assumption is Ford believe's it can control brand loyalty through leases and captive finance.

Also assume that 98% of the North American automobile buying public has no idea that Ford is giving up the car market. By 2021 there will be lots of wondering how a "car" company can decide to quit building and selling cars.

IMO, what Ford has and is overestimating is the idea that vehicle sharing will be their saving grace. They must have a vision of one gigantic Hertz like marketplace.
 
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Here's the thing, the sedan market helps build loyal customers that will then buy the expensive SUVs and Trucks later on. Giving up the sedan market is the biggest mistake ever. It will help the bottom line in the short term and will look like genius but long term market share will erode.
 

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Ford really feels they can get their current sedan owners to move to a CUV/SUV, which I think they probably can get a good bit of them. Again Ford knows they are going lose some market share, but they feel the higher profit margins will make up for it. Just hopefully they get better on their pitch to move to a CUV because my local dealer sucks haha.
 

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Customer surveys point out Ford's problem....

"Many Ford owners surveyed said they'll likely buy their next vehicle from one of Ford's rivals. Among Ford sedan owners, half said they would switch to a new or used car from another automaker for their next vehicle. Only 10 percent said they would get a new crossover or SUV from Ford; 5 percent said they'll get a Ford Mustang and 3 percent said they will drive a new Ford pickup."

Then actual consumer sales prove it...

"For example, 53 percent of owners who trade in a Ford Fusion already go to a different brand, according to Kelley Blue Book data."

Ford sees the same data, which is why Ford is going back to the decision making drawing board like I have said they needed to do over and again...

Ford forms new group to develop more profitable, competitive vehicles
http://www.autonews.com/article/20180828/OEM/180829761/ford-forms-new-group-to-develop-more-profitable-competitive-vehicles

"The automaker this week formed what it calls an Enterprise Product Line Management group to work with marketing, engineering, mobility and product development teams to overhaul the company's vehicle portfolio. The goal is to better study what customers want and build more profitable, competitive vehicles.

It's an approach Ford has taken with its most popular vehicle: the F-series pickup. The automaker also credits its leadership in commercial vehicles and sports cars to the same obsession with understanding its buyers' specific needs."

So Ford is finally going to start asking car, suv and crossover customers what they want, and just maybe offer that? It seems like this would have been something that would happen BEFORE deciding to kill off cars. But if this is actually the case, there is really nothing under those silhouettes, because Ford is just no trying to figure out what it should be. Which is a good thing. But it's clear to Ford that they are NOT going to be successful in moving sporty and agile sedan and hatch customers into big clumsy and expensive SUVs just to get more profits.
 

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"It's organizing its products into 10 categories: F series, urban utilities, rugged utilities, family utilities, performance vehicles, commercial vehicles, electric vehicles, compact trucks, luxury vehicles and emerging-market vehicles."

Ford may have left themselves an opening back into the never ending sedan/5-door hatch market with this category. Because if Ford is reaching for the future of the sedan or consumer commuter vehicle, it will be and electric vehicle.
 

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I will be purchasing ( or hope to ) a new Taurus after the first of the year before its phased out. I'm not interested in a truck or CUV/SUV. Never was. Never will. If Ford doesn't want my money, that's their problem. If Ford can't compete with foreign sedans sales, they are in big trouble.
 

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I guess that also confirms the sedan is dead in Ford's global portfolio as well. Their de-sedanning is more aggressive than I thought, it also makes it very permanent. It also puts into question the future of Focus & Fiesta, which I know Ford has openly said is unprofitable. I guess it's a good thing they invested in these products now and ride out the crossover transition and re-evaluate those products as needed. I think Ford just needs to replace their Focus/Fiesta volume with profitable vehicles before making any decisions on their future.

And hey, Ford just confirmed they have a compact truck coming...unless Ranger qualifies as compact truck?
 

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I guess that also confirms the sedan is dead in Ford's global portfolio as well. Their de-sedanning is more aggressive than I thought, it also makes it very permanent. It also puts into question the future of Focus & Fiesta, which I know Ford has openly said is unprofitable. I guess it's a good thing they invested in these products now and ride out the crossover transition and re-evaluate those products as needed. I think Ford just needs to replace their Focus/Fiesta volume with profitable vehicles before making any decisions on their future.

And hey, Ford just confirmed they have a compact truck coming...unless Ranger qualifies as compact truck?

The Fiesta and the Focus are the core of the european line up. If Ford kill both, are killing the european operation. Without any doubt.


And that compact truck is the Focus based FWD unibody small truck (Courier?).
 

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The Fiesta and the Focus are the core of the european line up. If Ford kill both, are killing the european operation. Without any doubt.


And that compact truck is the Focus based FWD unibody small truck (Courier?).
Ford has said none of their volume products are earning profit so they have to transition away from this and I would say they have a solid 8 years to get away from their loss leaders. They have to, or they won't have a Euro business.
 
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