When will ford step up

[bigphish]

When will ford step up and offer a 5year 100,000 mile warranty. We're building world class cars but they want to gouge customers with over priced extended warranties. Its time to back up what we build.

[CD4EMAN]

When will ford step up and offer a 5year 100,000 mile warranty. We're building world class cars but they want to gouge customers with over priced extended warranties. Its time to back up what we build.

[/quote

 

I agree, when will Ford make the next step to being the best automobile maker in the world. World class cars and a world class warrantee to boot. We are already hitting homeruns now we need a grand slam!

[SheetMetalJoe]

By offering that warranty, we would show the public that we mean business, and in turn it would litterally force us to build higher quality. I think it's a great idea!

[Marginal Economist]

Couple of Questions:

1. How many additional vehicles will Ford sell due to a longer warranty?

2. What are the additional costs that will be incurred in covering the additional time/mileage?

3. How much cash and profit will Ford lose due to decreased ESP sales?

[CD4EMAN]

Couple of Questions:

1. How many additional vehicles will Ford sell due to a longer warranty?

2. What are the additional costs that will be incurred in covering the additional time/mileage?

3. How much cash and profit will Ford lose due to decreased ESP sales?

 

 

I think of the public perception of "Ford has enough confidence to back their vehicles longer", the gain will out weigh the cost in the long run. But who knows? The American car buyer is fickle.

[partsisparts]

I think of the public perception of "Ford has enough confidence to back their vehicles longer", the gain will out weigh the cost in the long run. But who knows? The American car buyer is fickle.

 

These extra warranties cost money. They are incorporated into the price of the car. Ford does not want to raise the prices of their cars by a few hundred dollars per vehicle. They give the customers the choice to spend the money to protect the vehicle. Or not. Some people do not care about extended warranties some do. At Ford you have a choice. GM and Hyundai do not lower the price of the car if you do not want a 100,000 mi warranty.

[DTP Inmate]

.

Edited January 2, 2010 by DTP Inmate

[bigphish]

Couple of Questions:

1. How many additional vehicles will Ford sell due to a longer warranty?

2. What are the additional costs that will be incurred in covering the additional time/mileage?

3. How much cash and profit will Ford lose due to decreased ESP sales?

I don't have the answers to your questions. i just think it's sad that we are building great cars and trucks and have the worst warranty in the business. Since 2000 i have bought 5 new vehicles and drove each one at least 100,000 miles 2 went in for warranty work i don't think the additional cost would be more than we would gain from more sales but what do i know

[bigphish]

These extra warranties cost money. They are incorporated into the price of the car. Ford does not want to raise the prices of their cars by a few hundred dollars per vehicle. They give the customers the choice to spend the money to protect the vehicle. Or not. Some people do not care about extended warranties some do. At Ford you have a choice. GM and Hyundai do not lower the price of the car if you do not want a 100,000 mi warranty.

I would rather pay a few hundred dollars more for my vehicle, than have the dealer trying to make an extra buck by selling me a warranty that doesn't even cover everything and they do play with the cost. one dealer will charge you more or less for the same coverage than another dealer will. when i am spending 40k plus don't try and gouge me for more

[niteeyes]

How the heck does Ford lose money on a warranty, I got an F150 with 208k miles on it never been in the shop, same with my 03 town car, 80k, never a problem. and im pretty sure my 09 F150 will be just as good. When they sell a warranty thats just extra money in the bank for them cause chances are that you will never use it.

[4600]

Couple of Questions:

1. How many additional vehicles will Ford sell due to a longer warranty?

2. What are the additional costs that will be incurred in covering the additional time/mileage?

3. How much cash and profit will Ford lose due to decreased ESP sales?

 

 

ESP generates more than 50% of FCSD profits. If we were to raise warranty limits Toyota would merely match it, and because their warranty costs are small compared to ours, we would be at a disadvantage. The HVC's are experiencing significant volume drops partly because we are building a better car and warranty work (our bread and butter) is reduced. This drop in warranty work is great for the Company but bad for our side of the business. I would love to see Ford increase their warranty levels, but also see the negatives. On a side note, for years Wall Street analysts and various credit analysts have been pressuring Best Buy to separate their extended warranty profits from their merchandise sales profits because many believe they are making all their money on the service plans and little to nothing by selling actual merchandise. That we make more than 50% of our FCSD profits on ESP was a shock to me when I first heard it a couple of years ago. When you figure FCSD profit in 2008 was about 1.8 billion you realize just how important it is in terms of profit.

 

related article - older but interesting

 

http://www.warrantyweek.com/archive/ww20060725.html

[udontkno]

Ford could offer an improved warrenty through the dealer that would improve the profits of Ford and the dealer. Many vehicles will never need any warrenty work but if Ford said the vehicle would have an extended warrenty if the owner of the vehicle had their vehicle serviced only at an authorized Ford dealership. Win-win the owner gets extended warrenty that they will probably never use and Ford and its dealers get the enhanced service revenue. After all my local Ford dealer charges $39.99 for an oil change, needless to say I would never get my oil changed from them. I have bought 10 or more new Ford vehicles and never bought an extended warrenty. I have never had any problems with any of the vehicles but If I did and the vehicle only had 50 or 60 thousand miles, I would not buy another product from a company that didnt back its product.

[westmont]

I don't have the answers to your questions. i just think it's sad that we are building great cars and trucks and have the worst warranty in the business. Since 2000 i have bought 5 new vehicles and drove each one at least 100,000 miles 2 went in for warranty work i don't think the additional cost would be more than we would gain from more sales but what do i know

 

Your building a quality vehicle. Notice who just got bailed out and offering longer warranty's.

At this time due to legacy cost's you can't offer them. A couple of things need to happen maybe for

this to happen.

1. Mercury killed (only 4 vehicles anyway)

2. New union contract

3. Tighter control on part suppliers they also have to step in this game.

 

Also would you

really gain new customers. Press is on your side with momentum.

[Marginal Economist]

Ford could offer an improved warrenty through the dealer that would improve the profits of Ford and the dealer. Many vehicles will never need any warrenty work but if Ford said the vehicle would have an extended warrenty if the owner of the vehicle had their vehicle serviced only at an authorized Ford dealership. Win-win the owner gets extended warrenty that they will probably never use and Ford and its dealers get the enhanced service revenue. After all my local Ford dealer charges $39.99 for an oil change, needless to say I would never get my oil changed from them. I have bought 10 or more new Ford vehicles and never bought an extended warrenty. I have never had any problems with any of the vehicles but If I did and the vehicle only had 50 or 60 thousand miles, I would not buy another product from a company that didnt back its product.

 

So if:

You have had repeated good experiences with a product from a company

They told you up front what was covered and for how long

They gave you the opportunity to acquire additional coverage

1 out of 10 products fail after the stated coverage has expired

 

You would never buy another product from that company.

 

I would say the company is backing its product - for the length of the warranty period and any additional time/mileage as covered by the Ford ESP. Am I missing something?

[SheetMetalJoe]

After reading all of the discussion, I have come up with a scene from one of my favorite movies, Tommy Boy. Enjoy!

 

Tommy: Let's think about this for a sec, Ted, why would somebody put a guarantee on a box? Hmmm, very interesting.

 

Customer: Go on, I'm listening.

 

Tommy: Here's the way I see it, Ted. Guy puts a fancy guarantee on a box 'cause he wants you to fell all warm and toasty inside.

 

Customer: Yeah, makes a man feel good.

 

Tommy: 'Course it does. Why shouldn't it? Ya figure you put that little box under your pillow at night, the Guarantee Fairy might come by and leave a quarter, am I right, Ted?

[chuckles until he sees that Ted is not laughing too]

 

Customer: [impatiently] What's your point?

 

Tommy: The point is, how do you know the fairy isn't a crazy glue sniffer? "Building model airplanes" says the little fairy; well, we're not buying it. He sneaks into your house once, that's all it takes. The next thing you know, there's money missing off the dresser, and your daughter's knocked up. I seen it a hundred times.

Customer: But why do they put a guarantee on the box?

 

Tommy: Because they know all they sold ya was a guaranteed piece of $#!t. That's all it is, isn't it? Hey, if you want me to take a dump in a box and mark it guaranteed, I will. I got spare time. But for now, for your customer's sake, for your daughter's sake, ya might wanna think about buying a quality product from me.

 

Customer: [pause] Okay, I'll buy from you.

[FiredMotorCompany]

After reading all of the discussion, I have come up with a scene from one of my favorite movies, Tommy Boy. Enjoy!

 

Tommy: Let's think about this for a sec, Ted, why would somebody put a guarantee on a box? Hmmm, very interesting.

 

Customer: Go on, I'm listening.

 

Tommy: Here's the way I see it, Ted. Guy puts a fancy guarantee on a box 'cause he wants you to fell all warm and toasty inside.

 

Customer: Yeah, makes a man feel good.

 

Tommy: 'Course it does. Why shouldn't it? Ya figure you put that little box under your pillow at night, the Guarantee Fairy might come by and leave a quarter, am I right, Ted?

[chuckles until he sees that Ted is not laughing too]

 

Customer: [impatiently] What's your point?

 

Tommy: The point is, how do you know the fairy isn't a crazy glue sniffer? "Building model airplanes" says the little fairy; well, we're not buying it. He sneaks into your house once, that's all it takes. The next thing you know, there's money missing off the dresser, and your daughter's knocked up. I seen it a hundred times.

Customer: But why do they put a guarantee on the box?

 

Tommy: Because they know all they sold ya was a guaranteed piece of $#!t. That's all it is, isn't it? Hey, if you want me to take a dump in a box and mark it guaranteed, I will. I got spare time. But for now, for your customer's sake, for your daughter's sake, ya might wanna think about buying a quality product from me.

 

Customer: [pause] Okay, I'll buy from you.

 

Just remember, a guarantee is only as good as the company offering it. If the company fails, your guarantee goes out with the other companies' promises to pay their employees, their vendors, their bank loans, etc.

 

Ford guarantee? Or GM guarantee? Which one is standing on their own? Which one has survived? Which one is more likely to be around in 5 years?

Do you think the government will continue to prop up GM and Chrysler for the next five years if the economy doesn't improve soon? With the deficit spending we are enduring now, will the administration continue to spend money on GM?

 

Guarantees. I promise! I'll take your money now and provide a service later. I'll be here in 5 years when you need me. Ask Bernie Madoff. Ask the retirees who worked for 30 years expecting to have a stable income and benefits like they were "promised" while they traded those promises for other wage and benefits options during the contracts negotiated during their working years.

 

How secure are you feeling that you will get the Social Security you have earned and paid into? When you retire 10-15 years from now, will SS be there? Trust the government, they know what's best for you.

Edited January 3, 2010 by FiredMotorCompany