FORD MOTOR CO. MARCH 2008 SALES FIGURES

[bb62]

Of course, missing in your gloom was the shift younger in Focus volume. Also missing was any recognition that 1) Ford's incentive spending was on a par with a year earlier, 2) Ford's market share is ahead of internal projections, and 3) E-Series and F-Series sales aren't going to vanish into thin air. It's not as though the US has never been through a recession before. I mean do any of you guys remember 2001?

 

1. Focus volume is one product among many. While it is good news that there can be a product manufactured by Ford that can appeal to younger buyers, the lack of accounted profit for the vehicle will mean little to the near term crisis. The volume for Focus (and Edge) is partly driven by the advertising that seems to be driven to those two vehicles. I hope the other vehicles aren't being forgotten.

2. Ford's internal projects are being set as much to generate some story of success for the internal troops. Otherwise morale would be off the cliff. But Ford seems to be taking the tact of "what's theirs is theirs and what's mine is negotiable"; this is no way to fight back.

3. E-Series and F-Series consumer (as opposed to business) sales are indeed going given the current and future projected price of gasoline. And given that these two vehicles were the most profit intensive vehicles in the corporation (along with Expidition and Explorer which are sales that are also disappearing), it is likely to hurt quite a bit even in the longer term when business volume recovers.

4. I also remember the recessions of 90, 87, 79-81 as well as 2001 and nothing in those recessions is remotely similar to what is being faced today. This is not a business cycle adjustment that will need to be endured, it is a fundamental shift in how the US markets in general and the US auto industry in particular deal with globalization. The European markets for years have lived with a 2% ROS as that was what was reasonable in that multi-manufacturer environment. The US has always shown about a 5-6% ROS given the strength of the economy and the market mix. Living with this lower ROS is the big challenge that Ford needs to overcome. They've never had to be efficient before and now they do during a time when the market is slowing, their products are being viewed as old people's (with some exceptions), and their individual products don't have the returns necessary to sustain them. Clearly it's a challenge.

[jpd80]

This is the best time for Ford to make all needed changes in right sizing production and bringing new products to market.

I really think Ford will survive this lean stretch far better than GM or Chrysler.

 

Proof? look at how GM's shares have fallen like stones.

[FordFanForEver]

Didn't they already get rid of the Vulcan 3.0? If not, WHY?!?!?!?!?!?!?!?

 

the vulcan is a really great engine. They last a long time...

[Edstock]

But Ford seems to be taking the tact of "what's theirs is theirs and what's mine is negotiable"; this is no way to fight back.

You're entitled to your opinion. Could you please supply corroboration? Otherwise, this is just a brain-fart.

 

Please explain how Ford's current buiness exhibits this.

[P71_CrownVic]

the vulcan is a really great engine. They last a long time...

...because they are gutless.

[jobu37]

1. Focus volume is one product among many. While it is good news that there can be a product manufactured by Ford that can appeal to younger buyers, the lack of accounted profit for the vehicle will mean little to the near term crisis. The volume for Focus (and Edge) is partly driven by the advertising that seems to be driven to those two vehicles. I hope the other vehicles aren't being forgotten.

2. Ford's internal projects are being set as much to generate some story of success for the internal troops. Otherwise morale would be off the cliff. But Ford seems to be taking the tact of "what's theirs is theirs and what's mine is negotiable"; this is no way to fight back.

3. E-Series and F-Series consumer (as opposed to business) sales are indeed going given the current and future projected price of gasoline. And given that these two vehicles were the most profit intensive vehicles in the corporation (along with Expidition and Explorer which are sales that are also disappearing), it is likely to hurt quite a bit even in the longer term when business volume recovers.

4. I also remember the recessions of 90, 87, 79-81 as well as 2001 and nothing in those recessions is remotely similar to what is being faced today. This is not a business cycle adjustment that will need to be endured, it is a fundamental shift in how the US markets in general and the US auto industry in particular deal with globalization. The European markets for years have lived with a 2% ROS as that was what was reasonable in that multi-manufacturer environment. The US has always shown about a 5-6% ROS given the strength of the economy and the market mix. Living with this lower ROS is the big challenge that Ford needs to overcome. They've never had to be efficient before and now they do during a time when the market is slowing, their products are being viewed as old people's (with some exceptions), and their individual products don't have the returns necessary to sustain them. Clearly it's a challenge.

1. New ad campaign coming out soon. Perhaps you have heard of it. "Ford. Drive One!" This is the first attempt by Farley to address the decade long absence of marketing that has taken place at Ford.

2. Neither you nor I know what kind of internal projections Ford has made so it is not rationale for either of us to determine whether they are sitting the bar low or high. Obviously last year they acknowledged that they did not meet internal on numerous occasions but still eked out two profitable quarters. So even when they don't meet internal goals they doing enough things right to make an impact on the bottom line.

3. Over time there will be a shift from the larger vehicles and when that shift becomes a sea change event Ford will already have the Fiesta, Euro-Focus, much-improved Fusion and very appealing CUV lineup to pick up the slack. This shift will effect all manufacturers, not just Ford. Although, there will always be a market (albeit smaller) for full size pickups for those who truly need them and Ford will continue to be a semi-dominant player in that market. Expedition type vehicles will eventually drop down to fewer players. GM has strong loyalty to the Suburban and Ford may be able to be the other who stays in that market with Expy. Dodge/Chryco, Nissan, and maybe even Toyota will exit that market within five years. Princeton, IN plant may very well shut down during next five years unless it is shifted over to car/CUV producing facility. Toyota has acknowledged that they have one plant too much capacity currently and San Antonio plant will not be shut down. That would look like failure, and the Japanese don't like to admit failure.

4. Ford and GM both are going to benefit greatly from new UAW contract which will result in better ROS along with higher margin vehicles such as Flex, MKS, New F-series, New Fusion, and a Focus that is already improving net vehicle pricing in the C-car segment. Top line growth along with reduced cost structure due to fewer unnecessary employees is perfect cure for lower ROS. When Euro Focus arrives it will move up market bringing in an additional $1500-2000 in top line revenue. The Fiesta built with cheaper SA labor will sale close to where current Focus is at so Ford has potential for incredible gains in margins starting at the end of this year.

 

So just calm down a little bit and try looking at the half of the glass that has the liquid in it instead of the half that has the air.

[TStag]

Oh yeah. Since everybody is instantly going to stop buying SUV's. For comparison, the Expedition alone outsells the entire Land Rover lineup in the US. Enough with the sky-is-falling BS.

 

I said long term not instantly. Read my post before you get on your high horse! The reason I make this arguement is because in the UK, where fuel prices are already high we have seen the likes of Ssangyong's importer go under because fewer and fewer people want a non premium SUV. The problem is that whilst people can afford 4x4's they can't always afford to run them. So the likes of Land Rover soak up sales at the top end because their customers can afford the petrol and all that tax.

 

Land Rover's boss made a very perceptive comment recently. He argued that Land Rover could shove the price of a Range Rover up to incorporate new hybrid technology that would make their vehicles much more fuel efficient. He said they could charge an extra $10,000 and their customers wouldn't mind. But try putting $10,000 on an entry level SUV and see how owners like it. The LRX is another example. Essentially Land Rover plan to charge their customers another $20,000 for a car that's smaller than an LR2! Could a mainstream brand like Toyota pull that off? I doubt that.

 

Once Land Rover, BMW and Mercedes have got the Co2 emmisions of their 4x4's down, just watch them try and put everyone else out of business by calling for high polluting SUV's to be band or taxed out of business. Unless the lower end manufacturers can get their customers to fork out $10,000 extra for their SUV models then wave goodbye to them.....

[jpd80]

Once Land Rover, BMW and Mercedes have got the Co2 emmisions of their 4x4's down, just watch them try and put everyone else out of business by calling for high polluting SUV's to be band or taxed out of business. Unless the lower end manufacturers can get their customers to fork out $10,000 extra for their SUV models then wave goodbye to them.....

And all other manufacturers are standing idle while they do that?

Not likely.

 

True a premium brand can carry hybrid options and a $10,000 sting is nothing to a high end customer.

J/LR will combine Tata's more fuel efficient cars with their fuel economy and voila, compliance to Euro CO2

 

Australia's 1 million/year national fleet for all vehicles under 3 tonnes is expected to meet 222g/klm by 2010,

in 2007 the average was 226g/klm.

[NickF1011]

1. Focus volume is one product among many. While it is good news that there can be a product manufactured by Ford that can appeal to younger buyers, the lack of accounted profit for the vehicle will mean little to the near term crisis. The volume for Focus (and Edge) is partly driven by the advertising that seems to be driven to those two vehicles. I hope the other vehicles aren't being forgotten.

2. Ford's internal projects are being set as much to generate some story of success for the internal troops. Otherwise morale would be off the cliff. But Ford seems to be taking the tact of "what's theirs is theirs and what's mine is negotiable"; this is no way to fight back.

3. E-Series and F-Series consumer (as opposed to business) sales are indeed going given the current and future projected price of gasoline. And given that these two vehicles were the most profit intensive vehicles in the corporation (along with Expidition and Explorer which are sales that are also disappearing), it is likely to hurt quite a bit even in the longer term when business volume recovers.

4. I also remember the recessions of 90, 87, 79-81 as well as 2001 and nothing in those recessions is remotely similar to what is being faced today. This is not a business cycle adjustment that will need to be endured, it is a fundamental shift in how the US markets in general and the US auto industry in particular deal with globalization. The European markets for years have lived with a 2% ROS as that was what was reasonable in that multi-manufacturer environment. The US has always shown about a 5-6% ROS given the strength of the economy and the market mix. Living with this lower ROS is the big challenge that Ford needs to overcome. They've never had to be efficient before and now they do during a time when the market is slowing, their products are being viewed as old people's (with some exceptions), and their individual products don't have the returns necessary to sustain them. Clearly it's a challenge.

 

None of that explains:

 

1. that the GDP still doesn't indicate recession in the U.S. economy. So by that measure, it has been far LESS damaging than past recessions, imagined or not....at least so far.

 

2. that Ford has continued to INCREASE revenue while losing sales from its main profit centers.

 

The only Fords even I could even REMOTELY consider to be labeled as "old people cars" by the general public would be the Town Car, Grand Marquis, Crown Victoria, and possibly the Taurus and Sable.

 

Focus, Mustang, Fusion, F-series, Ranger, Edge, Escape....these are "old people cars"???

Edited April 2, 2008 by NickF1011

[NickF1011]

I said long term not instantly. Read my post before you get on your high horse! The reason I make this arguement is because in the UK, where fuel prices are already high we have seen the likes of Ssangyong's importer go under because fewer and fewer people want a non premium SUV. The problem is that whilst people can afford 4x4's they can't always afford to run them. So the likes of Land Rover soak up sales at the top end because their customers can afford the petrol and all that tax.

 

Land Rover's boss made a very perceptive comment recently. He argued that Land Rover could shove the price of a Range Rover up to incorporate new hybrid technology that would make their vehicles much more fuel efficient. He said they could charge an extra $10,000 and their customers wouldn't mind. But try putting $10,000 on an entry level SUV and see how owners like it. The LRX is another example. Essentially Land Rover plan to charge their customers another $20,000 for a car that's smaller than an LR2! Could a mainstream brand like Toyota pull that off? I doubt that.

 

Once Land Rover, BMW and Mercedes have got the Co2 emmisions of their 4x4's down, just watch them try and put everyone else out of business by calling for high polluting SUV's to be band or taxed out of business. Unless the lower end manufacturers can get their customers to fork out $10,000 extra for their SUV models then wave goodbye to them.....

 

That's an awful lot of conjecture on your part, especially considering the popularity of the SUV is mostlyconcentrated in North America where none of the regulations you are speaking of exist, and likely won't anytime soon.

[Edstock]

Once Land Rover, BMW and Mercedes have got the Co2 emmisions of their 4x4's down

 

:hysterical:

[FordFanForEver]

...because they are gutless.

 

Well, i don't expect you to know anyways since you do not drive a ranger.

[FordFanForEver]

In what parallel universe are you living where the Ranger gets good gas mileage? The Ranger gets shit for mileage with both the 3.0 and 4.0 V6.

 

Ranger 4WD:

3.0 - 14/19 annual fuel cost $3,056

4.0 - 14/17 annual fuel cost $3,262

 

F-150 4WD

4.6 - 13/17 annual fuel cost $3,491

5.4 - 13/17 annual fuel cost $3,491

 

So, for an extra $435 dollars a year, you can have a 4.6/5.4 F-150 over a 3.0 Ranger. OR, for an extra $229 dollars a year, you can have a 4.6/5.4 F-150 over a 4.0 Ranger.

 

Clearly, you need to study the engines the Ranger has in it. Most of the ranger sales come from the 2.3 I4

[P71_CrownVic]

Well, i don't expect you to know anyways since you do not drive a ranger.

 

No, I just ride in one every other week for 30 miles a day. Hard to talk over the straining 3.0

 

 

Clearly, you need to study the engines the Ranger has in it. Most of the ranger sales come from the 2.3 I4

 

Clearly I don't...all of my info came from Ford.com

[old_fairmont_wagon]

Doesn't the Cologne V6 cease production soon?

 

Actually, from what I've heard, the Vulcan 3.0L v6 engines out there were stockpiled a while back. I believe that someone posted a plant schedule for the engine plants and the Vulcan 3.0L was EOL by this time. As for the Cologne 4.0L, yes, its supposed to die some day, but not yet. Remember, the cologne still sees use in the Ranger, the Explorer, the Mustang and, lest we forget, the LR3 base v6 model. The MCE on the mustang is rumored to move to the D35 family. The Explorer has about two years left on this run, but they have the room to swap in a D35 at any time. As for the ranger, don't know. It would make sense to me to make the under the hood tweaks to house a D30/D35 to replace the Vulcan/cologne V6s. Ranger is the last vehicle in Ford's global portfolio to use the Vulcan 3.0L. The only sticking point here is that the D30/D35 is considerably more expensive to produce than the Vulcan 3.0L. They'd have to raise the price on the ranger to cover the extra costs, though, with a modern engine, I might actually be ok market wise.

[FordBuyer]

After all the sales figures are in from all the major players, Ford sales through the first quarter of the year don't look so bad and especially for March. Ford is doing the best of the Domestics in sales, and for March almost as good as Toyota. In such a down market where Ford was really supposed to struggle, Ford is doing better than some and hanging tough. Ford's market share has stabilized or even improved a little at around 16.7%. Ford is showing decent strength in areas where they never did before, and F-Series sales are not that bad on 4 year old truck considering how much the pickup market is struggling. Even 10,000 Explorers sold is not bad when you consider what competition is selling at. Ford truly is hanging in there through some very tough times. When the economy does improve and goes into recovery mode, Ford stands to show some nice sales increases across the board.

[blksn8k2]

I recall watching an episode of Autoline Detroit that aired just before the Edge went on sale. The host, John McElroy, was interviewing one of the editors from Motor Trend and asked him what his impression was of the Edge. The MT guy basically ripped it a new butt hole saying it was not very sporty or fun to drive. His opinion was that the RSC was too intrusive to the point that it took all the fun out of it. McElroy's response was something like "Well, I think we'll have to wait and see what the average consumer thinks of it". I guess the average CUV buyer doesn't care about skid pad G forces or slalom test speeds. Imagine that...

[RichardJensen]

1. Focus volume is one product among many. While it is good news that there can be a product manufactured by Ford that can appeal to younger buyers, the lack of accounted profit for the vehicle will mean little to the near term crisis. The volume for Focus (and Edge) is partly driven by the advertising that seems to be driven to those two vehicles. I hope the other vehicles aren't being forgotten.

2. Ford's internal projects are being set as much to generate some story of success for the internal troops. Otherwise morale would be off the cliff. But Ford seems to be taking the tact of "what's theirs is theirs and what's mine is negotiable"; this is no way to fight back.

3. E-Series and F-Series consumer (as opposed to business) sales are indeed going given the current and future projected price of gasoline. And given that these two vehicles were the most profit intensive vehicles in the corporation (along with Expidition and Explorer which are sales that are also disappearing), it is likely to hurt quite a bit even in the longer term when business volume recovers.

4. I also remember the recessions of 90, 87, 79-81 as well as 2001 and nothing in those recessions is remotely similar to what is being faced today. This is not a business cycle adjustment that will need to be endured, it is a fundamental shift in how the US markets in general and the US auto industry in particular deal with globalization. The European markets for years have lived with a 2% ROS as that was what was reasonable in that multi-manufacturer environment. The US has always shown about a 5-6% ROS given the strength of the economy and the market mix. Living with this lower ROS is the big challenge that Ford needs to overcome. They've never had to be efficient before and now they do during a time when the market is slowing, their products are being viewed as old people's (with some exceptions), and their individual products don't have the returns necessary to sustain them. Clearly it's a challenge.

2) Ford's target first half was stable market share. That doesn't correspond to "what's mine is negotiable". Furthermore, they are obviously targeting this market share in real business terms, not just pleasant sounding inhouse fluff, as they have held the line on incentives and continued to reduce rental fleet sales.

 

3) At what point in time will gas prices eliminate the need for moving anything that weighs more than 500 lbs? Or is more than 3' square?

 

4) This recession is worse than the one in 90? I mean, what difference do you want to draw between the S&L crisis back then and the mortgage market crisis today? Both involve the real estate and consumer credit markets in a vicious circle. As to net margin being in the 2% range, I think that's something Mulally's got his head around.

[NickF1011]

4) This recession is worse than the one in 90? I mean, what difference do you want to draw between the S&L crisis back then and the mortgage market crisis today? Both involve the real estate and consumer credit markets in a vicious circle. As to net margin being in the 2% range, I think that's something Mulally's got his head around.

 

I know one BIG difference between the S&L crisis and the mortgage market crisis today: The S&L crisis actually had a corresponding drop in GDP. So far, we haven't even experienced negative growth in GDP. When we see a couple quarters of drops in GDP, THEN I'll finally admit to calling this a recession. So far, this entire 'recession' exists only in the eyes of the media and perception of the public.

[Ford Jellymoulds]

3) At what point in time will gas prices eliminate the need for moving anything that weighs more than 500 lbs? Or is more than 3' square?

 

High fuel prices don't seem to be abating Richard, you can laugh at T-Stag buzzing when Jaguar sales rise 5.1% 85 extra sales, but when the F-Series drops 5% you are talking a lot of revenue lost for Ford, Pick-ups and SUV's are big revenue makers for Ford how much longer will Ford ignore the fact that high fuel prices are not going to go away, how much longer will Ford sit back watching sales decline month on month before they act and do something about making more fuel efficient pick-ups (Fuel efficent Escape sales are up 12% ), sitting back and do nothing can't be an option for Ford surely, and see another 23,500 high profit sales disappear down the swanney since January.

Edited April 3, 2008 by Ford Jellymoulds

[NickF1011]

High fuel prices don't seem to be abating Richard, you can laugh at T-Stag buzzing when Jaguar sales rise 5.1% 85 extra sales, but when the F-Series drops 5% you are talking a lot of revenue lost for Ford, Pick-ups and SUV's are big revenue makers for Ford how much longer will Ford ignore the fact that high fuel prices are not going to go away, how much longer will Ford sit back watching sales decline month on month before they act and do something about making more fuel efficient pick-ups (Fuel efficent Escape sales are up 12% ), sitting back and do nothing can't be an option for Ford surely, and see another 23,500 high profit sales disappear down the swanney since January.

 

Let's see.

 

Diesel going into the F-150. 6-speed transmissions going into the F-150. Increases in fuel economy across the entire F-150 lineup for '09.

 

New small car in the Fiesta. New small delivery vehicle in the Transit Connect. New small pickup in the redesigned Ranger.

 

Yep. Ford is definitely ignoring fuel economy. :rolleyes:

 

The point Richard is making (and it's a good one) is that fullsize pickups will ALWAYS exist. Yes, their volume will decline some, but it will ALWAYS be a very large market, no matter what happens to fuel prices.

[Ford Jellymoulds]

Let's see.

 

Diesel going into the F-150. 6-speed transmissions going into the F-150. Increases in fuel economy across the entire F-150 lineup for '09.

 

New small car in the Fiesta. New small delivery vehicle in the Transit Connect. New small pickup in the redesigned Ranger.

 

Yep. Ford is definitely ignoring fuel economy. :rolleyes:

 

The point Richard is making (and it's a good one) is that fullsize pickups will ALWAYS exist. Yes, their volume will decline some, but it will ALWAYS be a very large market, no matter what happens to fuel prices.

 

Trouble is Nick Ford are like a Oil Tanker they need 30 miles to turn around something they should have bad weatherproofed everything years ago it should be built in, then they would not be enjoying declining sales when you hit a storm, they have got the Escape well sorted why not the F-Series 2009 is a long way off as high fuel price maggots starts eating away at Ford sales.

[NickF1011]

Trouble is Nick Ford are like a Oil Tanker they need 30 miles to turn around something they should have bad weatherproofed everything years ago it should be built in, then they would not be enjoying declining sales when you hit a storm, they have got the Escape well sorted why not the F-Series 2009 is a long way off as high fuel price maggots starts eating away at Ford sales.

 

Umm...the new F-series comes out this fall.

 

Fiesta is just over a year away as well.

 

Sure, they should have been updated already, but it's not like they aren't just around the corner with new product to address it and it's not like Ford is the only automaker in the same situation.

[Ford Jellymoulds]

Umm...the new F-series comes out this fall.

 

Fiesta is just over a year away as well.

 

Sure, they should have been updated already, but it's not like they aren't just around the corner with new product to address it and it's not like Ford is the only automaker in the same situation.

 

It's good news Nick, but looking in at the sales at the moment is becoming is like a trip to the dentist painful.

[NickF1011]

It's good news Nick, but looking in at the sales at the moment is becoming is like a trip to the dentist painful.

 

Eh, the sales have their bright spots. And it's not like F-series sales are GONE by any means. It's still the best-selling vehicle in the US. All said and done, it will probably remain the best-selling vehicle in the US too. Yes, there are spots where Ford needs to attack, but they are taking the right approach and will be in those critical markets soon.