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Mulally: Ford to simplify lineup


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Mulally: Ford to simplify lineup

Too many options add cost, mystify the consumer

 

Amy Wilson

Automotive News

October 29, 2007 - 12:01 am EST

 

 

DETROIT — Alan Mulally says Ford Motor Co. will dramatically reduce its vehicle complexity to cut costs and make ordering easier for customers.

 

Ford vehicles will have fewer optio......

 

http://www.autonews.com/apps/pbcs.dll/arti.../710290432/1178

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From a previous article:

Given engine choices, interior trim level choices, color choices and other packages and options, a single Ford vehicle can theoretically be available in thousands of configurations, the story noted. For example, there are currently 16,000 buildable combinations of options and color offered on the 2007 Ford Mustang V-6 deluxe model.

 

No wonder Ford wants to reduce complexity but which options do you cut out or combine?

How many buyers would that relegate to special orders?

 

If you had Mustangs available in 8 colours, 3 interior trims, V6/V8 Engine choice, Manual/Auto trans and 3 model levels

Theoretically, you have 288 combinations and that's before you start customising.

Edited by jpd80
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Mulally: Ford to simplify lineup

Too many options add cost, mystify the consumer

Old news (well, for insiders)

 

It started after Mulally arrived when he went to buy a 15 passenger van for his mother's retirement home. He freaked when he saw how many options there were and even the sales rep couldn't explain them all.

 

Fewer option mixes definitely helps cut production costs. However, some companies have figured out how to make money by exploiting options. Check out Mini. There is even an option on how to paint the outside rear view mirrors.

 

I also think the American buying public likes to choose their own options. Kind of like a custom built vehicle. Of course, then they complain because the dealer does not have it on the lot and it takes more than 2 weeks to build and deliver.

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Lincoln bundles options very neatly, but those are expensive cars and people buying Lincolns aren't penny pinching every option.

 

I'm fine with consolidating option packages, but don't remove anything for Christ sake! Next Mullaly will start removing the keyless entry pad on all Fords because Toyota doesn't have them ;).

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Personally, if Ford just gave me a $2000 coupon to go to any After-Market shop to get things like a paint job, body kits, radios, or whatever my heart desired and sold me a car for $5000 less, I'd be one happy mother- :censored: er.

 

That's how it should be...

 

That's not happening. Even with factory labor rates, it's significantly cheaper to do things at the factory than aftermarket. The savings to be had here are in the hundreds, not the thousands.

 

European factories generally handle far more build combinations than American ones. European cars to have more powertrain offerings, and they produce for international markets where different countries often have different regs and different feature levels.

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Honda and Toyota's are also getting more options now , which might explain why their reliability is suffering on new models, more stuff to go wrong.

 

I used to really like how Honda did it. You bought a DX Accord, it had certain basic features. If you wanted a few more features, you bought the LX, If you wanted a few more features like sun roof, etc, you got the EX model. Wanted Leather with a fancy drivers seat, you got EX with leather. Then you had choice of 4 or 6. So You had 3 versions, and choice of 4 or 6 engines. We always ordered 4 cylinder EX with leather model. That was it. Now they have some special models, but basically still the same i believe.

 

Toyota is a lot more compicated in their ordering, I think, because here in Florida, there is another middleman (SE Toyota) who sometimes adds options at the dock.

 

My mother in laws Milan was simple. Standard and Premere versions, either 4 or 6. Just like Honda.

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From a previous article:

No wonder Ford wants to reduce complexity but which options do you cut out or combine?

How many buyers would that relegate to special orders?

 

If you had Mustangs available in 8 colours, 3 interior trims, V6/V8 Engine choice, Manual/Auto trans and 3 model levels

Theoretically, you have 288 combinations and that's before you start customising.

 

 

Ford needs to figure out a way to make the Mustang Pony option so that you do not have to be subjected to the ugly spoiler on the back that is different from the one on the GT. It sucks when you get on to the car lot and they are on every single car.

 

The nice thing about the Mustang is that you can get interior colors other than biege or gray. Of course my favorite is black with red contrast but I would love to see blue added for blue, white and silver cars. They could also introduce a very western Mustang on-the-ranch theme with saddle browns.

 

I guess now they will force us to buy black or an average color that is between biege and gray just so they don't have to tool up for anything more than they have to.

 

Also a big problem with option packages is not always being able to choose the wheels you want.

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Ford needs to figure out a way to make the Mustang Pony option so that you do not have to be subjected to the ugly spoiler on the back that is different from the one on the GT. It sucks when you get on to the car lot and they are on every single car.

 

Its called a spoiler delete option

 

Dealers get cars like that because your typical car buyer thinks Spoiler=fast

 

Also a big problem with option packages is not always being able to choose the wheels you want.

 

Hmm...last time I looked the Mustang GT offered 3 different wheel options two 18inchers and one 17 inch

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The nice thing about the Mustang is that you can get interior colors other than biege or gray. Of course my favorite is black with red contrast but I would love to see blue added for blue, white and silver cars. They could also introduce a very western Mustang on-the-ranch theme with saddle browns.

 

I guess now they will force us to buy black or an average color that is between biege and gray just so they don't have to tool up for anything more than they have to.

 

I would agree except with the white. Ack!! White interiors look great if you never, ever drive your car. But even after as little as a few hours of seat time, white interiors are a mess. Perhaps a lighter tan/beige than the saddle-type colors they've been offering as of late, but a pure white is a no-no.

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Personally, if Ford just gave me a $2000 coupon to go to any After-Market shop to get things like a paint job, body kits, radios, or whatever my heart desired and sold me a car for $5000 less, I'd be one happy mother- :censored: er.

 

That's how it should be...

why so ford can bleed to death??

 

people need to stop thinking the ford owes them something.

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The only problem with moving options to the dealer level is that they will gouge you to death on the prices of them...

Actually the bigger problem is inconsistent quality of aftermarket parts and installation. Also the customers forget that these options are not covered by the company warranty.

 

Related story.

 

For years Ford refused to do a remote start because of fears about lawsuits. ("I pushed the start button and the car came through the garage into the house !") When GM started offering it as a factory option, management realized that it only took 1 relay, some wiring changes and some software in the PCM for "one touch start". Almost 100% of the '08 models have one touch start. The key fob guys haven't got their act together yet, but the PCM software is ready !

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Hmm...last time I looked the Mustang GT offered 3 different wheel options two 18inchers and one 17 inch

Wheel options are incredibly profitable !

 

Personally I hate the Big Wheel look. The race car guys went to bigger wheels to accommodate bigger brake rotors and calipers. Very few productions cars increased their brakes.

 

Most people don't know that a 17" or 18" wheel and tire weighs more than a 15" wheel and tire. More mass to accelerate = slower. Those super low profile tire (50 and 40 aspect ratio) transmit every little bump into the suspension which is not capable of absorbing it (without turning the car into a rolling bathtub).

 

And look at the price difference between 15" an 17" replacement tires.

 

I'll save the 17" and 18" for the track.

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Wheel options are incredibly profitable !

 

Personally I hate the Big Wheel look. The race car guys went to bigger wheels to accommodate bigger brake rotors and calipers. Very few productions cars increased their brakes.

 

Most people don't know that a 17" or 18" wheel and tire weighs more than a 15" wheel and tire. More mass to accelerate = slower. Those super low profile tire (50 and 40 aspect ratio) transmit every little bump into the suspension which is not capable of absorbing it (without turning the car into a rolling bathtub).

 

I agree to a point...

 

And look at the price difference between 15" an 17" replacement tires.

 

Well it could be coming from 10 years of buying performance tires..but I think that $100-120 dollars for a performance tire is pretty reasonable.

 

I can get replacement 18 inch tires for my 06 Mustang GT installed from Tirerack.com for around $640...

 

Using the Edge as an example, you can get replacement tires in 17 inch size for $75 bucks and 18inchers for $90...nothing out of this world there...

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Old news (well, for insiders)

 

It started after Mulally arrived when he went to buy a 15 passenger van for his mother's retirement home. He freaked when he saw how many options there were and even the sales rep couldn't explain them all.

 

Fewer option mixes definitely helps cut production costs. However, some companies have figured out how to make money by exploiting options. Check out Mini. There is even an option on how to paint the outside rear view mirrors.

 

I also think the American buying public likes to choose their own options. Kind of like a custom built vehicle. Of course, then they complain because the dealer does not have it on the lot and it takes more than 2 weeks to build and deliver.

I't's O.K. to cut the options list as long as the most popular ones are available and become standard!

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Good Mulally is doing the right thing keeping costs down, leave the extra options to the aftermarket car accessory shops and retail outlets.

 

Yeah. Why would Ford want that profit, when they can just give that business away too. :rolleyes:

Edited by Pioneer
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If you give me a bare bones car and say "this is our premium model; if you want more go to xxxxxx aftermarket," I would be unhappy to have to hop through another hoop after the dealership experience.

 

I doubt this is going to be their train of thought when it comes to this, if anything it means options like wheels or nav systems might be dealer installed options, not whole different trim levels.

 

Remember, there are a lot of people who don't buy directly from the factory.

 

Personally I rather order what I want and get what I want instead of kicking myself later when I don't have an option on a car since I bought it off the dealer lot. Plus you have to pay a lot fee since it was taking up space...:rolleyes:

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From a previous article:

No wonder Ford wants to reduce complexity but which options do you cut out or combine?

How many buyers would that relegate to special orders?

 

If you had Mustangs available in 8 colours, 3 interior trims, V6/V8 Engine choice, Manual/Auto trans and 3 model levels

Theoretically, you have 288 combinations and that's before you start customising.

 

Surely the Mustang should have thousands of combinations? BMW didn't make the MINI the sucess it is today by knocking out as many as they could with as few options as possible. They took the view that they would sell a mere 250,000 MINI's a year at a massive premium over other small cars. To do this they invested in a paint shop that could do all kinds of weird and wacky things. They came up with lots of neat little toys for it and offered them as options. A MINI can go for between $22000 and $50,000 dollars as a result. BMW actually make most of their money on the accessories for the MINI! In fact MINI is so sucessfull that they may soon start making some in the USA because the UK car plant has no more capacity left.

 

If Ford don't want to offer lots of options then I can only guess they plan to target the likes of Hertz and go back to the Ford moto "you can have it in any colour you like as long as it's black". Admittedly I don't know the full extent of the plans, but I do wonder if Mullaly has considered that the car market is made up of millions of consumers. Not 30 or so airplane companies......

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Offering consumers less choice doesn't seem like a good way to go to me. I remember when robotization starting hitting assembly plants big time, the buzz word used to be "mass customization". That was the promise that automation was going to bring us. Infinite and personalized choice. Yeah right - just like the 32 hour work-week and the paperless office.

 

Not to beat a dead horse - or rather a dead bird - but I credit the demise of the T-Bird at least partially to a lack of choice. J Mays and Jac Nasser each had themselves a T-Bird built with a 390hp supercharged Jaguar motor and BMW 6-speed manual transmission. If they had only offered these as options on the T-Bird. It would have attracted some buyers to spring for the extras, while adding luster to the entire lineup, even the base units. Instead - even though they demonstrated that it could be done - the T-Bird was brought to market with exactly one powertrain choice. (If you can call that a "choice".) How many here have wished for a manual transmission with a 6-cyl on the Fusion? Mazda can do it. How many have wished for a Fusion Wagon? Mazda can do it. Fusion Coupe? Ranger Crew Cab?

 

Lastly, and back to this "mass customization" notion, I have always hated packaged options: "You want the high end audio system, you have to get the lighting group and the alloy wheels." etc. Just give me a freaking menu please, and let me pick what I want. And I do not mind waiting 2 weeks - or 2 months - for what I want. I waited 2 years and 4 months from the time I put the deposit on my T-Bird to the time I took delivery. The only body helped by packaged options and no choice is the guy in the plaid sportcoat saying "What would it take for me to get you into this car today?" trying to shove something he happens to have on the lot down your throat. [/rant]

Edited by retro-man
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