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Ford inventory issues


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I just looked up the Focus's days supply its not pretty.

 

as of jully 1st it was at 21 days supply vs 20 days on June 1st

with a supply of 17,600 units

 

on may 1st it was 34 days.

 

the fiesta is at 38 days supply vs 28 in June.

9500 in the system

 

fusion 44 vs 29 days supply in June.

 

35,000 in the system.

 

 

compared to the Cruze

38 days in july 29 days in June.

36,000 in the system.

 

What does ford need to do to take advantage of the opportunities in the market?

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People who are in a better situation in these times are looking for "opportunity" themselves. The ones who are smart know that a new car is not an investment. Given recent news on the economy (and the likelihood of the trend continuing at least in the short term), peoples' purchases are (or will be) based either on price or perceived value.

 

Ford should stress value (similar to the way Hyundai does). Could that mean similar warranty, "assurance", or some other program? I'm not saying Ford should copy Hyundai word-for-word, but the Hyundai dealer looks busier when you drive by. Unless they're giving away free food (or using some other gimickry) they must be doing something right.

Edited by RangerM
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The Focus inventory is actually pretty good considering how many they're selling. It's a hot new product and the supply channels haven't had anytime to catch up, it's going to be awhile before you see 40+ day supplies. The Explorer is much worse, it's a much lower volume product but they can't even remotely catch-up to demand.

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The Focus inventory is actually pretty good considering how many they're selling. It's a hot new product and the supply channels haven't had anytime to catch up, it's going to be awhile before you see 40+ day supplies. The Explorer is much worse, it's a much lower volume product but they can't even remotely catch-up to demand.

 

the explorer is at 36 days right now or 14,300 units. there is a difference between the D3/D4 supplier network vs the All new C2 supplier network. It was much easier to ramp up prodcution for the explorer, ford simply diverted production from the Tauaurs and MKs to the Explorer, this is not posible for the Focus, there is only one plant and the network, is not delivering the quantity of parts to keep the plant at capacity.

So having a tight inventory and selling what you can produce isn't pretty? finger.gifredcard.gif

 

there is difference between tight and constrained, we are constrained when the dealer only has 4 cars to sell. in a car that comes in 11 colors, 4 trim levels and 2 bodystyles. dealers are spending money shipping cars around to meet the needs of the customers, and alot of customers as you can witness here and on FJ are having to order their cars, how many less passionate buyers will simply buy a Cruze or an Elantra.

 

the mix of vehicles is also not right for the market, we have too many s and low end SEs on the lots and not enough titaniums and SELs. Ford has to smooth out the bumps in the network before they would add more variants to the mix.

a good supply level would be 30-40 days bad is >50. for comparison GM full size P/U are at 110 days supply.

 

Not necessarily. I think Biker16 is referring to opportunity cost as it applies to increased Ford Focus production.

 

correct.

 

 

what would be nice is if we cold supplement US production with EU production until we get our supply up.

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the mix of vehicles is also not right for the market, we have too many s and low end SEs on the lots and not enough titaniums and SELs. Ford has to smooth out the bumps in the network before they would add more variants to the mix.

This I feel is part of the problem with Explorer sales in my market. Most dealers are way over-stocked with Limited units, with a very rare (at least locally) XLT model here and there. Think they'd move much quicker here if they had a little more variety on their lots.

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This I feel is part of the problem with Explorer sales in my market. Most dealers are way over-stocked with Limited units, with a very rare (at least locally) XLT model here and there. Think they'd move much quicker here if they had a little more variety on their lots.

 

Funny, it is just the opposite here. A 4WD Limited can barely get unloaded from the truck before it is sold. There is no shortage of XLT and FWD. I bought a loaded Limited 4WD and it has only rolled of the factory line 2 weeks before and had only been at the dealer for a couple of days.

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Our lot is terrible. There are only 2 new cars on the lot, a 2011 Mustang and MKS. 0 Fiesta, 0 Focus, 0 Fusion, 0 Taurus. They will send F-150's. 3 Escapes, 1 Explorer, 0 Edges. I feel for the people that have to make a living with these inventory levels I don't see how it's possible. We can't figure out what the issue is.

 

There has never been a steady stream of Explorers since they started shipping them last November. It has been a record year for dealer trades. Great vehicles they are making, but they can't sell what they don't have, and I am sure they lose a steady stream of people to other brands.

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Our lot is terrible. There are only 2 new cars on the lot, a 2011 Mustang and MKS. 0 Fiesta, 0 Focus, 0 Fusion, 0 Taurus. They will send F-150's. 3 Escapes, 1 Explorer, 0 Edges. I feel for the people that have to make a living with these inventory levels I don't see how it's possible. We can't figure out what the issue is.

 

There has never been a steady stream of Explorers since they started shipping them last November. It has been a record year for dealer trades. Great vehicles they are making, but they can't sell what they don't have, and I am sure they lose a steady stream of people to other brands.

DEALER TRADES SUCK!...I fully feel your pain...

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the mix of vehicles is also not right for the market, we have too many s and low end SEs on the lots and not enough titaniums and SELs. Ford has to smooth out the bumps in the network before they would add more variants to the mix.

 

Stupid question coming :): Who usually dictates the vehicle mix to sell? I thought the dealer had most say in the matter, unless someone at Ford vetoed it...

 

I do agree with the overall mix being not right. I wasn't able to find anything on the lots that had my desired configuration (even with my dealer looking for my other colour choices).

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Stupid question coming :): Who usually dictates the vehicle mix to sell? I thought the dealer had most say in the matter, unless someone at Ford vetoed it...

 

I do agree with the overall mix being not right. I wasn't able to find anything on the lots that had my desired configuration (even with my dealer looking for my other colour choices).

 

ultimately it is the dealers choice, the dealers were hedging against the anticipted sticker shock of the new model so they ordered too many value leaders, and not enough premium models.

 

Ford does advise dealers on what to order., but thye cannot force them to order that mix.

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", we have too many s and low end SEs on the lots and not enough titaniums and SELs."

 

Even more proof that the know-nothings from a few months ago were wrong again about "Nobody will pay over $20K for a Focus!" Same with the ones who said 'Hatches won't ever sell again', "Focus back seat is too small, it will flop like the Contour", "I like my 2003 SVT, the new ones are too ugly to sell, bring back the old ones", and my least favorite: 'Focus is supposed to be a cheap, sporty car for kids just out of HS"

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ultimately it is the dealers choice, the dealers were hedging against the anticipted sticker shock of the new model so they ordered too many value leaders, and not enough premium models.

 

Ford does advise dealers on what to order., but thye cannot force them to order that mix.

 

I dunno about that, its been my observation that dealers in NJ are very supply limited since 2008 or so...my parents had a problem finding a Milan, and instead bought a Sable (which they really didn't want) instead. My GF had a hard time finding the Escape she wanted, but the dealership she got it from (and the salesman was a friend of a family friend) got her what she wanted in a dealer trade. There are barely any Mustangs on the lots, a very small selection of Foci and at the time I was looking last year...Fiestas where in decent supply, but thats has changed recently.

 

I was at two dealerships in MD the past couple weeks with a co-worker, and the one dealership (tiny) was lucky to have a total of dozen cars on the lot it seemed like. The other dealership in Bel Air was prob the best stocked Ford dealership I've seen in years...they had 5 new Foci, tons of F-150s, 3-4 new Explorers, but not much in the way of Fusions or Tauri.

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