BrewfanGRB Posted April 16, 2011 Share Posted April 16, 2011 It matters if you're an executive and your bonus is based on it, which is what it sounded like. However, it's unlikely they would have a market share target without a corresponding profit target. You don't want executives chasing market share with no profit. I think the broader point here is that even executives could or wanted to build share without regard to profit, they couldn't do it anyway, because the vehicles that need to be sold to capture the share literally don't exist. You could have a half-off sale, but if the vehicle doesn't exist, you can't sell it any price. It's a tough call---personally, I think profit should always be more important than share, so if you confidently, but slowly grow production that allows you to meet the demand that is willing to pay a non-incentivized price, then that is what you do and no more. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 16, 2011 Share Posted April 16, 2011 (edited) It matters if you're an executive and your bonus is based on it, which is what it sounded like. However, it's unlikely they would have a market share target without a corresponding profit target. You don't want executives chasing market share with no profit. Exactly, the rise in market percentage has been generated by GM's incentives and Ford is smart enough to offer just enough incentive to keep sales without ruining profit. If Ford makes close on 200,000 vehicles in a month and you offer just $500 less in incentives compared to GM, that's pretty much a billion dollars right there and do that for 12 months and the numbers really begin to add up. Reality is different I know but running the numbers on incentives is always a good exercise if people are really interested in seeing where profit is allowed to bleed away. Edited April 16, 2011 by jpd80 Quote Link to comment Share on other sites More sharing options...
akirby Posted April 16, 2011 Share Posted April 16, 2011 I think the broader point here is that even executives could or wanted to build share without regard to profit, they couldn't do it anyway, because the vehicles that need to be sold to capture the share literally don't exist. You could have a half-off sale, but if the vehicle doesn't exist, you can't sell it any price. But they're executives - they could easily order production ramped up. Other than the Fusion, I don't think any of Ford's vehicles are production constrained right now. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 17, 2011 Share Posted April 17, 2011 Focus & Explorer, in that you're having trouble building up a stock of inventory because they're being sold about as quickly as they can be built. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 17, 2011 Share Posted April 17, 2011 Focus & Explorer, in that you're having trouble building up a stock of inventory because they're being sold about as quickly as they can be built. If the rumors of all the down weeks we are supposed to get come true, you will be adding the F-150 to that list. Quote Link to comment Share on other sites More sharing options...
akirby Posted April 17, 2011 Share Posted April 17, 2011 Focus & Explorer, in that you're having trouble building up a stock of inventory because they're being sold about as quickly as they can be built. Temporary situation. Are those plants at 100% already? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 17, 2011 Share Posted April 17, 2011 I believe so. Quote Link to comment Share on other sites More sharing options...
Footballfan Posted April 17, 2011 Share Posted April 17, 2011 Some of the wild cards in regards to this topic... The demise of Mercury. You basically took 70-80,000 sales out of the equation right off the top. I am sure that many bought Ford or Lincoln products instead, but not all gravetated towards the remaning brands. Also, I am sure that Ford was not banking on the MKT and MKS to be such failures in the marketplace. My guess is that Ford was hoping to sell at least 50K of those two vehichles annually, not the sub-10,000 unit a year pace those two vehichles are selling at now. Quote Link to comment Share on other sites More sharing options...
MKII Posted April 17, 2011 Share Posted April 17, 2011 What is the industry average? Know of any tables/charts with most of the manufactures listed and categorized by vehicle class showing day supply? USA, car and light-truck Inventory on April 01 http://www.autonews.com/assets/PDF/CA7348747.PDF Quote Link to comment Share on other sites More sharing options...
akirby Posted April 17, 2011 Share Posted April 17, 2011 I believe so. All 3 shifts? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 17, 2011 Share Posted April 17, 2011 If the rumors of all the down weeks we are supposed to get come true, you will be adding the F-150 to that list. That would sharpen Ford's interest because even though they have around 136,000 in inventory, that's around 69 days which seems like enough but with a few lost weeks, that could really shorten up supplies of popular models... Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 17, 2011 Share Posted April 17, 2011 All 3 shifts? Theoldwizard mentioned that a lot of early stampings were rejected at the plant, maybe this was a problem that caused the plant to proceed at a more limited pace until problems were rectified.. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 17, 2011 Share Posted April 17, 2011 That would sharpen Ford's interest because even though they have around 136,000 in inventory, that's around 69 days which seems like enough but with a few lost weeks, that could really shorten up supplies of popular models... I see it another way. Just like the Mustang, you have people that have had F-150 orders in for months without even being issued a VIN. Sooner or later they are going to get tired of waiting and go elsewhere. By shutting plants down, that is just another week their vehicle will not be built. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 17, 2011 Share Posted April 17, 2011 (edited) I see it another way. Just like the Mustang, you have people that have had F-150 orders in for months without even being issued a VIN. Sooner or later they are going to get tired of waiting and go elsewhere. By shutting plants down, that is just another week their vehicle will not be built. Yeah, the market will only wear delays and excuses for so long before the opinion sways, "F Trucks are great but the waiting time is killing us, it's just easier to go buy Silverado..." but having said that, sales numbers and average transaction prices seem to be climbing... One thing about tightening up production with less plants and people, there's no margin for error and quite frankly, between Ford internal issues, suppliers and external forces like weather, I think that Ford is really going to struggle when it comes time to grow the market upwards again. You can see them starting to have issues with quality and supply already...they need to get on this. Edited April 17, 2011 by jpd80 Quote Link to comment Share on other sites More sharing options...
soupy Posted April 19, 2011 Share Posted April 19, 2011 Also, does anyone know when Q1 results are out, is it this month or May? Seems as though results will be out a little later than usual. Probably taking a couple extra days to count all the money Ford made this quarter!!!! I hope. http://finance.yahoo.com/news/Details-of-Ford-Motor-prnews-4235699035.html?x=0&.v=1 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 19, 2011 Share Posted April 19, 2011 Seems as though results will be out a little later than usual. Probably taking a couple extra days to count all the money Ford made this quarter!!!! I hope. http://finance.yahoo.com/news/Details-of-Ford-Motor-prnews-4235699035.html?x=0&.v=1 The earnings call was released today.......I believe Thursday morning, April 28. Hopefully Ford has blow out earnings, announces more debt paydown and stock shows a little life for a change as stock price has been in holding pattern for months now with trend down. It will be interesting to see what Ford offers in guidance for rest of year with parts shortages and high gas prices. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 19, 2011 Share Posted April 19, 2011 The earnings call was released today.......I believe Thursday morning, April 28. Hopefully Ford has blow out earnings, announces more debt paydown and stock shows a little life for a change as stock price has been in holding pattern for months now with trend down. It will be interesting to see what Ford offers in guidance for rest of year with parts shortages and high gas prices. Sorry, it's Tuesday, April 26th. Usually early in morning at 8 AM comes the press release and Mulally appears on WJR's Paul Smith show to go over it in detail. Mulally likes to do the weather on his show also. Smith is good at smoozing auto CEO's. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 19, 2011 Share Posted April 19, 2011 Sorry, it's Tuesday, April 26th. Usually early in morning at 8 AM comes the press release and Mulally appears on WJR's Paul Smith show to go over it in detail. Mulally likes to do the weather on his show also. Smith is good at smoozing auto CEO's. I'm predicting the analysts will underestimate Ford as usual and be "blown away" by another "surprising quarter..." Regardless of what head winds are in US or abroad, I think Ford is now clearly in the financial drivers seat and will keep powering on with debt reduction. Quote Link to comment Share on other sites More sharing options...
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