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Ford Almost Edges Out GM With Single Model, $179 Million Spending


suv_guy_19

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It couldn't have anything to do with the Edge being a mid-size CUV and the Lambda triplets being full-sized, could it? Nobody's shocked when the Fusion outsells the Avalon, or the Explorer outsells the Tahoe. The Taurus X certainly isn't outselling the triplets, although I'm pretty confident the Flex will be a huge hit.

Edited by danup
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If you guys read the article, the GM syblings didn't do poorly. The main point was that Ford could sell even more if they spent even more. Since they are only supporting one model, they can afford to advertise it more. I like the Edge, but the GM products are doing quite well.

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If you guys read the article, the GM syblings didn't do poorly. The main point was that Ford could sell even more if they spent even more. Since they are only supporting one model, they can afford to advertise it more. I like the Edge, but the GM products are doing quite well.

 

 

Actually, it seems to say that GM has the wrong idea:

 

"GM, with three different models, is diluting their marketing dollar," said Kevin Tynan, auto analyst at Argus Research. With one model, he said, Ford could spend more.
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It couldn't have anything to do with the Edge being a mid-size CUV and the Lambda triplets being full-sized, could it? Nobody's shocked when the Fusion outsells the Avalon, or the Explorer outsells the Tahoe. The Taurus X certainly isn't outselling the triplets, although I'm pretty confident the Flex will be a huge hit.

thinker.gif

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Well,

 

As bad as I thought the early Edge's ads were, at least they let people know if existed...

 

The Tarus X is a very nice 7 passenger vehcile that very few know exists. I honestly think that Ford should advertise it a more unless they are going to kill it off when the Flex arrives. It's only real draw back is that is it only rated to tow 2000lb. It is the main reason I did not consider one... I suspect that the Fex will also have this limitation. I think that the GM group can tow 4000lb. I think both the Flex and Tarus X will be more of a "soccer mom" vehicle and towing capacity will not be very importiant, but it will hurt sales among people who need a little more towing capacity for boats, campers....etc...

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Actually, it seems to say that GM has the wrong idea:

 

GM's products aren't doing poorly though. It isn't all gloom and doom for these GM models. I'm pretty sure the Buick Enclave, for example, commands a higher price than the Edge - and you read about its turn-around time on the lots too, right? Let's be honest .. the Edge is a huge hit for Ford. But, it really isn't a direct comparison to these Lambda vehicles. They are larger.

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Actually, it seems to say that GM has the wrong idea:

 

GM's products aren't doing poorly though. It isn't all gloom and doom for these GM models. I'm pretty sure the Buick Enclave, for example, commands a higher price than the Edge - and you read about its turn-around time on the lots too, right? Let's be honest .. the Edge is a huge hit for Ford. But, it really isn't a direct comparison to these Lambda vehicles. They are larger.

 

The Tarus X is a very nice 7 passenger vehcile that very few know exists. I honestly think that Ford should advertise it a more unless they are going to kill it off when the Flex arrives. It's only real draw back is that is it only rated to tow 2000lb. It is the main reason I did not consider one... I suspect that the Fex will also have this limitation. I think that the GM group can tow 4000lb. I think both the Flex and Tarus X will be more of a "soccer mom" vehicle and towing capacity will not be very importiant, but it will hurt sales among people who need a little more towing capacity for boats, campers....etc...

 

I keep hoping that the lack of advertising on the Taurus X and Taurus is because they are stop-gap products. We got our hopes up that it would be shown at Chicago, but now Igor seems to have quieted these ideas. Too bad :(.

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there is one problem with the article:

 

Ford spent $170 million on one model and sold less than GM sold of three models - and spent $126 million to advertise those three models. So GM Spent less money to advertise, and sold more units, of more expensive models .... that is not exactly a "loser" position.

 

However there are 2 factors to keep in mind:

1) the Lambdas are arguable better executed - which alone makes them more likely to sell

2) we should keep in mind the future - how will the cars sell in the coming years - if you ask a Joe Schmo on a random street whether they know what a Ford Edge is, you have a great changce he will know EXACTLY what it is .. if you ask him what Saturn Outlook, GMC Acadia, or Buick Enclave are, chances are he will have no clue. We all know what happens to vehicles no one knows about - after the people who WAITED for the car had bought theirs, the Joe Schmoes will go to Toyota/Honda/ wherever and buy the car they know about ( see Ford Five Hundred, Ford Freestyle etc)

 

Igor

Edited by igor
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Well, a limitation of the Edge is a lack of a third row as compared to the Lambdas. I'm NOT saying the edge should have one, just that, in comparison to the Lambdas, it doesn't. Ford has a product that should much better compete against the Lambdas. The relative success of the Buick Enclave is PROOF POSITIVE that ford should have had a higher end version of the Freestyle/Taurus X on the Lincoln/Mercury lots. They had a nice mockup in the Mercury Meta One (excluding the unobtanium powerplant) that was visually striking and well appointed in the interior and chose not to produce it. I blame ford for having the product at hand, a plant that was ready to produce it (both capacity and flexibility) a dealer base that was desperate for almost anything to sell, and a market that was obviously beginning to shift from full-sized BOF SUVs to crossovers and not taking a shot at it. Yes, we're not talking about pocket change here, but, given the costs of other programs, this one would have been trivial.

 

The only reason I can see them not doing it was a fear of the market deterioration that the Mountaineer was seeing and could have seen in higher amounts with a Meta One product on the show-room floor. The other problem is that Ford was probably loath to have yet another product that they might actually have to market, of, wait, they don't hardly market any of the other products that don't have the letter F and some numbers in its name. Heck, I've seen more Mercury ads on TV lately than I've ever seen adds for the Ford D3s.

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GM's products aren't doing poorly though. It isn't all gloom and doom for these GM models.

 

The GMC Acadia and Buick Enclave are selling very well, but the Saturn Outlook isn't, from what I've read. GM's makeover of Saturn appears to be going about as well as the makeover of Oldsmobile did...

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there is one problem with the article:

 

Ford spent $170 million on one model and sold less than GM sold of three models - and spent $126 million to advertise those three models. So GM Spent less money to advertise, and sold more units, of more expensive models .... that is not exactly a "loser" position.

 

However there are 2 factors to keep in mind:

1) the Lambdas are arguable better executed - which alone makes them more likely to sell

2) we should keep in mind the future - how will the cars sell in the coming years - if you ask a Joe Schmo on a random street whether they know what a Ford Edge is, you have a great changce he will know EXACTLY what it is .. if you ask him what Saturn Outlook, GMC Acadia, or Buick Enclave are, chances are he will have no clue. We all know what happens to vehicles no one knows about - after the people who WAITED for the car had bought theirs, the Joe Schmoes will go to Toyota/Honda/ wherever and buy the car they know about ( see Ford Five Hundred, Ford Freestyle etc)

 

Igor

I think what the author was talking about is the effectiveness of $170 Mil advertising one model as opposed to $126 mil across 3 models.

Already, the Edge is up 5,000 on last years figures and with more advertising again this year could see some serious numbers.

Edited by jpd80
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