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Ford loses NYC Taxi contest to nissan


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NASHVILLE -- Nissan North America has beat out Ford Motor Co. to win a 10-year contract to supply small commercial vans to New York City for its entire taxi cab fleet starting in 2013.

 

Nissan's bid also topped a small Turkish competitor, Karsan Otomotiv Sanayii Ve Ticaret AS, for the 13,000-vehicle deal, Nissan said in a statement today. Earlier this year, Karsan -- a clear underdog in the competition -- triggered a groundswell of public support around New York when it vowed to assemble its taxis in Brooklyn from kits if selected.

 

Ford proposed to supply New York with its small Transit Connect van, which is manufactured in Turkey.

 

Although 13,000 units is a relatively meager volume for mass producers such as Nissan and Ford, Nissan plans to use the taxi deal to launch other product plans, including a new small commercial van for the United States.

 

Ford connection

 

Leading the negotiations for Nissan was Joe Castelli, a former Ford commercial vehicle executive who now is Nissan's vice president of commercial vehicles and fleet business. Only a month ago, Castelli led the launch of Nissan's first commercial vehicle in the United States, a large commercial van that competes head-to-head with Ford's E-series vans and General Motors' Chevrolet Express and GMC Savana.

 

Until then, Nissan had not been a player in the U.S. commercial vehicle market, although it sells vehicles including delivery trucks and taxis in markets around the world.

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Seems the Ford Transit Connect isn't finding the customers Ford hoped for.

 

Huh? Didn't Ford say they hoped to sell 25k a year? Didn't it sell nearly 3k this month? Sounds like they are selling over what they hoped for at this point. This taxi deal was for 13k vehicles over 10+ years which is not exactly high volume...less than half this month's volume of the TConnect per year.

 

Granted, additional sales would be great, but i wouldn't say this is a HUGE loss for Ford. Sounds like the fleets wanted it, but NYC didn't, so they probably would have had to take their margins down to about nill to get the deal.

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Hybrid drive makes alot of sense, not electric. You're still running AC in the summer and heat in the winter, not to mention the meter. Until fast-charging becomes a real thing, no cab company is going to want their fleet down for 8 hours every charge.

 

This whole contest has something wrong about it. Cab companies are already working CUVs and People-Movers into their fleets, both Hybrids and petrol-only. The idea that Saint Bloomberg is going to anoint a new vehicle was silly before, now that they've picked a vaporware Nissan it's just absurd.

Edited by Moosetang
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Hybrid drive makes alot of sense, not electric. You're still running AC in the summer and heat in the winter, not to mention the meter. Until fast-charging becomes a real thing, no cab company is going to want their fleet down for 8 hours every charge.

 

This whole contest has something wrong about it. Cab companies are already working CUVs and People-Movers into their fleets, both Hybrids and petrol-only. The idea that Saint Bloomberg is going to anoint a new vehicle was silly before, now that they've picked a vaporware Nissan it's just absurd.

 

the charge time on the focus electric is 2.5 hours.

 

I agree with your point hybrids are the way to go in NYC.

 

I am disappointed because ford has been marketing the TC to NYC for at least 5 years.

 

I can think of a few issues

north American sourcing

Ford didn't present the EV or hybrid option hard enough or at all.

Ford took this contest for granted.

Nissan wanted it more and was willing to take a loss to get it.

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the charge time on the focus electric is 2.5 hours.

 

I agree with your point hybrids are the way to go in NYC.

 

I am disappointed because ford has been marketing the TC to NYC for at least 5 years.

 

I can think of a few issues

north American sourcing

Ford didn't present the EV or hybrid option hard enough or at all.

Ford took this contest for granted.

Nissan wanted it more and was willing to take a loss to get it.

 

I'm betting on the last one.

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the charge time on the focus electric is 2.5 hours.

 

I agree with your point hybrids are the way to go in NYC.

 

I am disappointed because ford has been marketing the TC to NYC for at least 5 years.

 

I can think of a few issues

north American sourcing

Ford didn't present the EV or hybrid option hard enough or at all.

Ford took this contest for granted.

Nissan wanted it more and was willing to take a loss to get it.

 

My guess is the bolded issue. Ford is done losing money to garner fleet sales.

 

Is the Nissan going to be produced in the US? Ford is planning to bring TConnect production to the US, isn't it? And I'm sure Ford plugged the EV and hybrid as they already have hybrid taxis in NY.

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Just wait until the things start breaking down and they find out how much more it costs to repair the Nissan than it does the Ford. lol NYC Taxis are not exactly exposed to country club golf cart type treatment. It has to be a vehicle that is able to withstand the rigorous duty that it is going to get exposed to. I'm sorry I just don't think the little Nissan box is up to the task.

 

I'm here in AL and as most of you know we just got slammed with tornados recently. In the aftermath my city of roughly 300,000 people was without power for four days. I found myself wishing I had a Transit for it's versatility. I could have easily charged my phone, a laptop if needed, and been able to bring home the plethora of supplies you suddenly find yourself in need of when the power is going to be out for a week. Things like cases of water, non-perishable food and home generators fit a lot more easily in the Transit than they do in a Mustang. And all in a vehicle that has to get good gas mileage because for the first two days the closest gas station that was open was 30 miles away. lol

Edited by BlackHorse
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To me it looks like several things went into this decision. One is that Nissan wanted this as the entry point for their compact van in the US market, so they were more agressive. And it is not something new, just new to us. Nissan has been building and marketing compact vans in other markets for years, this is the latest version of that product line. Another thing is that the Nissan van looks to be a bit longer than the Transit Connect from the specs I have seen, allowing more luggage room. And that see-through roof (a throw back to the old De Soto Sky View cabs) was probably another Nissan advantage. Whatever, it is only NYC.

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Is the Nissan a FWD or it is built on the new commercial van chassis that is RWD and a direct competitor to the E series? I'm sure mpg is a huge issue but has the durability of the FWDs that are in service been an issue?

 

In any case, I'm sure Nissan bought the business.

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Some more Info

 

http://news.yahoo.com/s/ap/20110503/ap_on_re_us/us_nyc_s_new_taxi

 

Although the city was not legally allowed to make its decision based on fuel efficiency, Nissan's vehicles would double efficiency to 25 miles per gallon from the Crown Victoria's 12 to 13 miles per gallon, the mayor said. The Nissan was the most fuel efficient and the cheapest of the three finalists, and is expected to cost about $29,000 — with an anticipated $1 billion in total sales.

Looks like its going to be gas powered and possibly be upgraded to a electric motor down the road also...

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the charge time on the focus electric is 2.5 hours.

 

I agree with your point hybrids are the way to go in NYC.

 

I am disappointed because ford has been marketing the TC to NYC for at least 5 years.

 

I can think of a few issues

north American sourcing

Ford didn't present the EV or hybrid option hard enough or at all.

Ford took this contest for granted.

Nissan wanted it more and was willing to take a loss to get it.

but they do have CNG and LPG alternatives.........

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"The TLC also announced the Ford Transit Connect runner up will be added to the list of approved cab vehicles during the interim period. That means the losing Ford will be on the road as soon as next month, well ahead of the Nissan."

 

http://www.nydailynews.com/ny_local/2011/05/03/2011-05-03_new_york_picks_new_taxi_nissan_cab_is_the_big_winner.html

I love this...the TC has been out for YEARS...and is proven beyond reproach...but the BEANCOUNTERS stuck on saving a few $ here and there, would rather ( riskily I might add ) roll the dice on a newbie. I hope they have NOTHING but issues, it will serve them right...this is a direct parallel to what some Municpalities have had to cope with ( read ISSUES ) when they decided to save a few bucks and replace their PI fleet with something other than Crown Vics....I will watch this closely....

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You know I routinely see the London Taxi Cabs in Detroit, they are using them at the Airport as Shuttles. I wonder if these vehicles were ever considered.

 

In Chicago I see lots of Scion xBs and Chrysler minivans as cabs.

Edited by BORG
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