pcsario Posted July 27, 2007 Share Posted July 27, 2007 Source Ford's core North American market continues to lose money and the macro environment doesn't show many signs of improving during the back half of 2007. Some analysts don't expect the housing-market slowdown to bottom out until well into 2008, and that is causing most industry observers to predict a slowdown in the already-sagging demand for automobiles. "The bottom line is the underlying consumer for automobiles is pulling back," Mike Jackson, chief executive of No. 1 auto-retail chain AutoNation Inc. (AN), told Dow Jones Thursday, following the release of his company's disappointing second-quarter results. He said that pressure on the retail environment, which is of growing importance to Ford as it dials back rental-car sales, will continue as long as housing woes pressure the economy. In the second quarter, Ford built much of its $500 million improvement in North America on cost cuts and better pricing for its vehicles. During the second half, the auto maker will have difficulty relying on both factors to feed continued momentum. Ford's pricing power is likely to fade as the company has no major product launches slated until 2008 and it likely will need to rev up incentives soon in order to clear old inventory. :reading: Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted July 27, 2007 Share Posted July 27, 2007 Source :reading: thanks pc...we can all read articles on our own...nice try with the glum news to dampen the moment though.... Quote Link to comment Share on other sites More sharing options...
ManFord Posted July 27, 2007 Share Posted July 27, 2007 Whats funny here is that everyone realizes that the 3rd and 4th quarter will probably be disappointing. So dude, just cause people celebrate a little doesn't mean they believe Ford is out of the woods. No one is denying that Ford has a huge hill to climb. Quote Link to comment Share on other sites More sharing options...
LSFan00 Posted July 27, 2007 Share Posted July 27, 2007 Are you f'in condescending me man? (It's a movie quote, ladies). Quote Link to comment Share on other sites More sharing options...
TStag Posted July 27, 2007 Share Posted July 27, 2007 Are you f'in condescending me man? (It's a movie quote, ladies). Q2 was excellent for Ford, Q3 and 4 will be tough but if JLR go then possibly profitable (depends on price). My worry isn't Ford's survival over the next 8 years or so but beyond that. Statistically the Japanese car brands double in size with the passing of each decade. Whilst I don't think they could repeat this trick they are biting down hard into Ford's NA sales. The other fear I have for all western/ Japanese car brands is the emergence of the Chinese and Indian car brand in 5-6 years time. In a decade I predict a much more challenging environment. Western car brands like Ford will need premium car brands more than ever at this point..... Quote Link to comment Share on other sites More sharing options...
LincolnFan Posted July 27, 2007 Share Posted July 27, 2007 Western car brands like Ford will need premium car brands more than ever at this point..... They have Lincoln and Mercury. Quote Link to comment Share on other sites More sharing options...
2005Explorer Posted July 27, 2007 Share Posted July 27, 2007 The other fear I have for all western/ Japanese car brands is the emergence of the Chinese and Indian car brand in 5-6 years time. In a decade I predict a much more challenging environment. Western car brands like Ford will need premium car brands more than ever at this point..... When they start selling those Chinese cars at Wal-Mart the Ford brand will become a premium car brand. What would u rather strap your loved ones into... a 2008 Taurus or a new Chinese Brilliance BS6? The BS6 is now on sale in Europe. Will it comes to the US? Who knows. Brilliance BS6 http://www.youtube.com/watch?v=F06LjugtIUo...ted&search= Ford Five-Hundred (couldn't find a video of the new Taurus crash, but I assume structure is similar. Quote Link to comment Share on other sites More sharing options...
JW Posted July 27, 2007 Share Posted July 27, 2007 One nice thing about the BS6 - there are lots of wide openings in which to insert the Jaws of Life, so they can retrieve your maimed carcass. Quote Link to comment Share on other sites More sharing options...
old_fairmont_wagon Posted July 27, 2007 Share Posted July 27, 2007 Take a good, hard look at Honda and Mitsubishi. Honda's overall size growth in the automotive market has slowed to a crawl compared to the 90s. Mitsubishi is still trying to lift itself from the ruins that it made of itself over the last decade. Mazda is growing largely as a function of its sharing with the Ford empire. Suzuki as a section of GM. Subaru isn't growing in any meaningful way. Nissan has seen its growth peak this decade and is on a little slide that even its joining with Renault isn't stopping. The only Japanese car company that still has significant growth momentum is Toyota. Their locked in a struggle to grow against two other automotive giants that are retrenching on their current market share and have gained improved focus on improving their product and gaining profitability (GM and Ford). As for the Chinese and India, unless vehicle safety regs in the US are SIGNIFICANTLY rolled back, their still going to face a base vehicle price of around $8999. That's about the floor for the cost of the raw materials for a four seat vehicle that is street legal from a equipment perspective and emissions perspective and meets minimum US crash standards and about $500 worth of labor. The Koreans already have subs that retail for $9999 with some wiggle room worked into their pricing. They aren't exactly setting the world on fire with their vehicles and they've made significant strides in their quality reputation in the last decade. Unless the chinese are willing to take a significant loss on every vehicle sold and tries to move them for $5000 or so a unit, they just aren't going to upset the US market much in the next decade. There are other hurdles for them to have to cross as well. With CAFE increasing and further emissions reg tightening, they are going to have to pour significant amounts of money into R&D and expensive gear to keep their vehicles compliant each year. The Koreans have been at it for decades and even they are having problems keeping up with the mpg requirements (ever wonder why they are only just recently debuting larger vehicles when they've had them domestically for decades?) Also, for a significant segment of the population, a new car purchase is also a lifestyle statement, a status symbol, or just a gotta-have-it reaction. None of the chinese or Indian imports are likely to have any traction in any of those areas. I'm thinking that the Chinese and Indians won't have good market penetration for at least a good 20 years or so. Just take a look at Daewoo. The parent company there is not tiny by any means. They were an established player in other markets. They came here with vehicles that were competitive at least on paper (heck, one of the vehicles had a Lotus handlig setup for what that's worth). They significantly undercut their competition on pricing. What happened to them? They went broke, got bought up in recievership by GM and shredded for profit. Now, they make the Aveo for GM and their US dealership network is gone and there are a lot of broken down Daewooos out there with warranties that weren't worth the paper they were written on. Quote Link to comment Share on other sites More sharing options...
Furious1Auto Posted July 27, 2007 Share Posted July 27, 2007 Q2 was excellent for Ford, Q3 and 4 will be tough but if JLR go then possibly profitable (depends on price). My worry isn't Ford's survival over the next 8 years or so but beyond that. Statistically the Japanese car brands double in size with the passing of each decade. Whilst I don't think they could repeat this trick they are biting down hard into Ford's NA sales. The other fear I have for all western/ Japanese car brands is the emergence of the Chinese and Indian car brand in 5-6 years time. In a decade I predict a much more challenging environment. Western car brands like Ford will need premium car brands more than ever at this point..... Well as far as I'm concerned Crystler is now a Chinese company, who if they file bankruptcy may not have to honor their warranties! What happened to Mopar? Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted July 27, 2007 Share Posted July 27, 2007 Well as far as I'm concerned Crystler is now a Chinese company, who if they file bankruptcy may not have to honor their warranties! What happened to Mopar? Cerberus Capital Management is Chinese? :huh: Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted July 27, 2007 Share Posted July 27, 2007 Unless the chinese are willing to take a significant loss on every vehicle sold and tries to move them for $5000 or so a unit, they just aren't going to upset the US market much in the next decade. That would be illegal, so you can scratch that one off the list of possible scenarios too. Quote Link to comment Share on other sites More sharing options...
Furious1Auto Posted July 27, 2007 Share Posted July 27, 2007 Cerberus Capital Management is Chinese? :huh: Didn't you read the article that said they intend on Crystler branding Chery cars to dump them on our market? If you sell Chinese cars than your a Chinese company in my book, here that Wal-Mart! Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted July 27, 2007 Share Posted July 27, 2007 Didn't you read the article that said they intend on Crystler branding Chery cars to dump them on our market? If you sell Chinese cars than your a Chinese company in my book, here that Wal-Mart! Oh yeah. Didn't put 2 + 2 together on that one. Quote Link to comment Share on other sites More sharing options...
NLPRacing Posted July 27, 2007 Share Posted July 27, 2007 Source :reading: Captian Obvious strikes again. Hasn't Ford themselves stated that they don't plan on being profitbale until 2009? Quote Link to comment Share on other sites More sharing options...
Furious1Auto Posted July 27, 2007 Share Posted July 27, 2007 Captian Obvious strikes again. Hasn't Ford themselves stated that they don't plan on being profitbale until 2009? The fact is that Ford saved nearly 500 million over last years losses. We will be profitable again! Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted July 27, 2007 Share Posted July 27, 2007 Captian Obvious strikes again. Hasn't Ford themselves stated that they don't plan on being profitbale until 2009? yes but see...there was a glimmer of hope...so he had to remind himself that things would still be bad for a while yet....he needs something to get excited about... Quote Link to comment Share on other sites More sharing options...
630land Posted July 27, 2007 Share Posted July 27, 2007 And Chrysler's sale still hasn't closed yet. Fact is this quarter Ford made $ much to surprise. Nobody said 'no moe problems', yet it does mean something is working. Many online have "personal" reasons why they want to see Ford fail. "No C1 Focus", "No all nw BOF RWD V8 car", "I love Mopar/GM/Imports". "My 84 Tempo blew a tranny" So, they basically post anything negative since they didn't see their dream car made, or just are loyal to another firm. Quote Link to comment Share on other sites More sharing options...
Furious1Auto Posted July 27, 2007 Share Posted July 27, 2007 And Chrysler's sale still hasn't closed yet. Fact is this quarter Ford made $ much to surprise. Nobody said 'no moe problems', yet it does mean something is working. Many online have "personal" reasons why they want to see Ford fail. "No C1 Focus", "No all nw BOF RWD V8 car", "I love Mopar/GM/Imports". "My 84 Tempo blew a tranny" So, they basically post anything negative since they didn't see their dream car made, or just are loyal to another firm. Thats pcsario! Quote Link to comment Share on other sites More sharing options...
TStag Posted July 27, 2007 Share Posted July 27, 2007 When they start selling those Chinese cars at Wal-Mart the Ford brand will become a premium car brand. What would u rather strap your loved ones into... a 2008 Taurus or a new Chinese Brilliance BS6? The BS6 is now on sale in Europe. Will it comes to the US? Who knows. Brilliance BS6 http://www.youtube.com/watch?v=F06LjugtIUo...ted&search= Ford Five-Hundred (couldn't find a video of the new Taurus crash, but I assume structure is similar. I hate the BS6 but I recognise it as a first attempt by a Chinese car brand. The Japanese once made equally rubbish cars. But bigger Chinese car makers are using European R&D team to get their models right. Look at SAIC or Nanjing...Nanjing's MG have cars with 5 NCAP safety ratings. On sale soon with every gizmo known to man. But your right people will buy premium models, will Ford be considered a premium brand?...no, others have already cornered that market Take a good, hard look at Honda and Mitsubishi. Honda's overall size growth in the automotive market has slowed to a crawl compared to the 90s. Mitsubishi is still trying to lift itself from the ruins that it made of itself over the last decade. Mazda is growing largely as a function of its sharing with the Ford empire. Suzuki as a section of GM. Subaru isn't growing in any meaningful way. Nissan has seen its growth peak this decade and is on a little slide that even its joining with Renault isn't stopping. Read it and weep: http://www.freep.com/apps/pbcs.dll/article...1/70703027/1014 Sales growth is still in double digits. If Honda keep growing at over 10% a year then within a decade they will have doubled in size. The Japanese SADLY keep growing strongly (if only Japanese cars weren't so bland). They have Lincoln and Mercury. rebadged Ford's don't count as premium cars and Ford know this. That's why their real premium brands are allowed to sell outside their countries of origin.... Quote Link to comment Share on other sites More sharing options...
BlackHorse Posted July 27, 2007 Share Posted July 27, 2007 Oh you guys just have to understand that pcsario is one of those "cup is half empty" kind of people. Unfortunately his head is completely empty. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 27, 2007 Share Posted July 27, 2007 Unfortunately his head is completely empty. Oh, it's not empty. Sadly, for him, what's in it is not brains. Quote Link to comment Share on other sites More sharing options...
pcsario Posted July 27, 2007 Author Share Posted July 27, 2007 WTF is this? Some sort of faggot tag teaming? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 27, 2007 Share Posted July 27, 2007 WTF is this? Some sort of faggot tag teaming? It's a setup, a punchline, and a topper. Comic theory 101, and you're the butt. Moron. Quote Link to comment Share on other sites More sharing options...
TomServo92 Posted July 27, 2007 Share Posted July 27, 2007 WTF is this? Some sort of faggot tag teaming? Talking from personal experience? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.