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Unintended consequences


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Okay.

 

So the Taurus is definitely a goner.

 

Big question: what happens to all that fleet volume?

 

Anyone think a fair amount of that gov't fleet volume will go to the Crown Vic?

 

I mean the fleet Vicky, not the PI, should sticker for just about as much as the fleet Taurus. What happens if Ford sees a boost in demand for the Crown Vic, just because it's going to be cheaper than the Five Hundred and more available than the Fusion?

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I'm suspecting they'll pick the 500 V6 more than the Crown Victorias. Crown Vics are a waste of gas in some respects.

 

How about piling the government up with Explorers?? Or, especially, Focii or Rangers? A Focus is perfectly adequate for most white collar government jobs, I'd imagine.

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The only problem with 500 fleets is the plat capacity - they do not have HUGE amount of space in Chicago - they definitely cannot take over ALL the Taurus fleet volume ....

 

But Five Hundred will probably see increase in sales in the coming months to the level where it will be running at capacity..

 

I have no idea where the Gov't and other fleet buyers will go then - maybe Focus - since Taurus was dirt cheap.. but we'll see.

 

Igor

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The only problem with 500 fleets is the plat capacity - they do not have HUGE amount of space in Chicago - they definitely cannot take over ALL the Taurus fleet volume ....

 

But Five Hundred will probably see increase in sales in the coming months to the level where it will be running at capacity..

 

 

Well from the Employee board, it seems like CAP has alot of downtime in the next couple months. I'm sure things will improve once the reskinned D3 come out next year and the MkS is added, but its not looking that great at the moment.

 

I think Ford would be wise to abandon most of the fleet sales of the Taraus if they can sell both the D3 and CD3 at both plants capasity and keeping fleet sales under 15% at the same time.

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D3s are on target for about 200k this year. That's only 40k short of capacity. Means only 40k worth of fleet volume...

 

Gas mileage is not as far off as you'd think. Crown Vic is rated at 20mpg combined, the Taurus 23mpg. It's about a $.02/mile difference. in gas mileage (@$3.00/gallon). Both are flex fuel capable, and Crown Vic would definitely be cheaper than the Five Hundred.

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If Chrysler's Sebring and Stratus doesn't connect with retail customers, it could become the darling of governmental fleet buyers, especially with the Taurus gone. However, if Ford's retail sales for the Five-Hundred don't pick up, I'd imagine they would strongly consider the temptation to push them more heavily into the fleets. With the CV, you can equip the cars with 2.73 standard rear and get really good gas mileage.

 

For Ford, obviously the short-term is to split the demand between Focus and Crown Victoria, depending on the need. Of course, two of the most reasonable assessments that will be made for the Crown Vic is the long-term durability of the Vic and the abundance of the replacement parts available on the market for them. Also, local, state and federal governmental agencies can benefit when it comes to maintaining and servicing the CV fleets with uniformity.

 

At this point, one thing that would elevate the Panthers' desirability is an alternative fuel such as an optional diesel, biodiesel, natural gas, hydrogen or hybrid gas/electric engine for light-duty fleet usage.

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If Chrysler's Sebring and Stratus doesn't connect with retail customers, it could become the darling of governmental fleet buyers, especially with the Taurus gone.

 

The only problem with this is that The Sebring and Stratus sedans are already the darlings of the Goverment fleet vechicles. The only time I see a Stratus sedan in my area it has Army TMP plates on it. I've never seen one sold retail except the coupe model.

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[i mean the fleet Vicky, not the PI, should sticker for just about as much as the fleet Taurus. What happens if Ford sees a boost in demand for the Crown Vic, just because it's going to be cheaper than the Five Hundred and more available than the Fusion?

Richard, Good point. In my mind once again its all about what Ford does from a marketing point of view.

 

There is no doubt the car is a hell of a value. Iwould also bet that its life cycle operating costs would be less then any FWD vehicle. As for mileage, again you are correct. I have one with the 41G pkg. which has 3.55 gears. It has 212,000 miles and it still averages close to 21 mpg-with 3.55's. My typical daily commute is 70 miles of which about 20 is stop and go city, 25 is x-way (75mph) and 25 is rural two lane.

 

As for the value issue, I have an 07 Sport on order. Its a co. car and trust me- I'm saving the co. a lot of money over other cars I could have had. If Ford is smart, they would take advantage of STAP's capacity. IF they were smart!

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