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Small CUV Market and Ford


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A better question is why Ford NA knew that Ecosport was not a good fit for its market.

Bottom line is that it really doesn't compare well to Focus hatch.

 

Because maybe it thought that B-class SUV market wasn't going to take off in North America/EU and it already had the Escape which more or less fills the C range SUV market? From what I saw Trax and Encore sales where dipping the last few months in NA.

 

Seems like the Ecosport was done with the thinking it was just going to be for emerging markets like China, Brazil, and India, like Figo...the but the Figo/Escort have more refinement since they are based on last gen products made for 1st world markets.

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Because maybe it thought that B-class SUV market wasn't going to take off in North America/EU and it already had the Escape which more or less fills the C range SUV market? From what I saw Trax and Encore sales where dipping the last few months in NA.

 

Seems like the Ecosport was done with the thinking it was just going to be for emerging markets like China, Brazil, and India, like Figo...the but the Figo/Escort have more refinement since they are based on last gen products made for 1st world markets.

 

Encore sales is slowing because it is a 3 year old car now... it's supposed to slow. Trax sales is probably negatively impacted by Honda HR-V.

 

EcoSport is based on the Fiesta so it's not inherently "cheap". It's just the design and execution fell short of 1st world expectation.

Edited by bzcat
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Relevant news: Nissan will introduce SWB Qashqai to complement LWB Rouge. That makes Nissan the 4th company in the US to sell both short and long version C-segment CUVs in the US.

 

Mitsubishi Outlander Sport + Outlander

Subaru VX + Forester

Jeep Compass/Patriot + Cherokee

Nissan Qashqai + Rouge

 

http://www.autonews.com/article/20150713/RETAIL/307139917/nissan-will-boost-production-by-100k-units-add-two-variants

 

BTW, Nissan is projecting 300,000 unit sales for both Rouge and Qashqai...

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Or conversely, would an "XV" cost that much more than a Focus hatch?

 

 

It will cost more to make, but if it isn't looked at in isolation, the cost of the AWD system can and should be share with The RS, and more pedestrian AWD focus models.

 

The greatest Development cost will be in redesigning The front and rear suspension models to Jack the vehicle up.

 

Beyond cost, this variant will have a much higher ASP than the mainstream focus.

 

Does the XV Focus eliminate the need for the EcoSport? no it does not.

 

A better question is why Ford NA knew that Ecosport was not a good fit for its market.

Bottom line is that it really doesn't compare well to Focus hatch.

Great Question, how short sighted do they look now.

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What is this supposed "explosion" of cute utes based on other than sheer speculation? Given the low prices and profit levels, is Ford really missing anything by not having Ecosport available now?

 

the Trax base price is $20k, 3,000 higher than the Focus and 6,000 higher than the Fiesta.

 

having a fiesta based CUV like the Ecosport would be far more profitable than the fiesta, and likely more profitable than the Escape and the same price point.

 

this is what it always has been, CUVs are more profitable because they command a high price, than the Sedans they are based upon.

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the Trax base price is $20k, 3,000 higher than the Focus and 6,000 higher than the Fiesta.

 

having a fiesta based CUV like the Ecosport would be far more profitable than the fiesta, and likely more profitable than the Escape and the same price point.

 

this is what it always has been, CUVs are more profitable because they command a high price, than the Sedans they are based upon.

Yeah but at that same price point, there is a clear overlap with the Escape, which starts at $22,960

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Yeah but at that same price point, there is a clear overlap with the Escape, which starts at $22,960

 

Escape overlaps with Edge too... Edge overlaps with Explorer. Earth revolves around the sun. The world doesn't end... :)

 

$20k Ecosport is a step up vehicle for people coming out of a $17k Focus from a few years ago. Just like $25k Escape is similarly positioned vs. midsize sedan replacement buyers.

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Escape overlaps with Edge too... Edge overlaps with Explorer. Earth revolves around the sun. The world doesn't end... :)

 

$20k Ecosport is a step up vehicle for people coming out of a $17k Focus from a few years ago. Just like $25k Escape is similarly positioned vs. midsize sedan replacement buyers.

The difference in overlap is huge though. A fully loaded Escape Titanium overlaps with the base model Edge. The scenario Biker posed essentially made the Escape and Ecosport the same price. That will never fly. If you think the Focus is overpriced (and I have heard that complaint more than I care to), that would bring new meaning to the term.

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But a $20k eco sport would still be on the low end of the profit totem pole. Just like fiestas. The volumes would have to be huge to provide the ROI of other vehicles.

 

The Escape would be less profitable than the ECosport at the same price point.

 

so selling an EcoSport at 23k would make more monet than an Escape at 23k, because it Ecosport is based on a lower cost base architecture than the Escape.

 

The volume of the Ecosport is already huge.

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The Escape would be less profitable than the ECosport at the same price point.

 

so selling an EcoSport at 23k would make more monet than an Escape at 23k, because it Ecosport is based on a lower cost base architecture than the Escape.

 

The volume of the Ecosport is already huge.

 

It's not huge in North America which is the topic of discussion here. It's nonexistent, and Fiesta sales are nothing to get excited about either.

 

A nicely equipped Escape at 27K is a better comparison to a fully loaded Ecosport at 23K. Don't assume people buy solely on price.

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The difference in overlap is huge though. A fully loaded Escape Titanium overlaps with the base model Edge. The scenario Biker posed essentially made the Escape and Ecosport the same price. That will never fly. If you think the Focus is overpriced (and I have heard that complaint more than I care to), that would bring new meaning to the term.

 

:stop: Stop, you are making silly contradictory arguments. $23k EcoSport will be either SE AWD with options or Titanium FWD while the $23k Escape is the base S FWD model. So how is any different than a $30k Escape Titanium vs. Edge SE?

 

 

Ecosport will probably start at $19k (S FWD) and goes up to $26k (Titanium AWD) - see MSRP for Honda HR-V or Chevy Trax for comparison

 

Escape base MSRP starts at $23,450 (S FWD) and goes up to $31,485 (Titanium AWD)

 

Edge base MSRP starts at $28,100 (SE FWD) and goes up to $40,095 (Sport AWD)

 

Explorer base MSRP starts at $30,700 (base FWD) and goes up to $52,600 (Platinum AWD)

Edited by bzcat
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:stop: Stop, you are making silly contradictory arguments. $23k EcoSport will be either SE AWD with options or Titanium FWD while the $23k Escape is the base S FWD model. So how is any different than a $30k Escape Titanium vs. Edge SE?

 

 

Ecosport will probably start at $19k (S FWD) and goes up to $26k (Titanium AWD) - see MSRP for Honda HR-V or Chevy Trax for comparison

 

Escape base MSRP starts at $23,450 (S FWD) and goes up to $31,485 (Titanium AWD)

 

Edge base MSRP starts at $28,100 (SE FWD) and goes up to $40,095 (Sport AWD)

 

Explorer base MSRP starts at $30,700 (base FWD) and goes up to $52,600 (Platinum AWD)

You and I are in agreement dude. What I was commenting on was Bikers ridiculous notion that because the Trax and Encore both START at 23k (edit: sorry 20k), the Ecosport should too. Edited by fuzzymoomoo
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It's not huge in North America which is the topic of discussion here. It's nonexistent, and Fiesta sales are nothing to get excited about either.

 

 

 

But a potential Ecosport with proper US market friendly execution and designs could sell a lot more...

 

Honda sold almost 8,000 HR-V last month (and 14k in 45 days since mid May). We are on pace to see this segment boom to 300,000 units on annualized basis by September (~4,000 monthly sales from each of the volume competitors: Buick, Chevy, Jeep, Fiat, Honda, Mazda; ~2,000 monthly sales each from Nissan and Mini). When I made that prediction last year in another EcoSport thread, let's just say there were plenty of doubters.

 

YTD sales

Buick Encore 30,549

Chevy Trax 24,815

Nissan Juke 14,647

Jeep Renegade 14,431 (since April)

Honda HR-V 14,141 (since Mid May)

Mini Countryman/Pacman 9,116

Fiat 500X 332 (just went on sale)

Mazda CX-3 (on sale mid summer)

 

Total B-segment CUV YTD 108,031

 

Not counting Kia Soul (67,986), which is sort of the same thing as the others but lacks AWD option.

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That's what I was asking - are we seeing sales numbers that back up the "exploding segment" claim? I don't count Juke, Soul, Fiat or Mini - those are niche products on their own. But that's a pretty strong showing from Trax, Renegade and HR-V.

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That's what I was asking - are we seeing sales numbers that back up the "exploding segment" claim? I don't count Juke, Soul, Fiat or Mini - those are niche products on their own. But that's a pretty strong showing from Trax, Renegade and HR-V.

 

Soul is not niche anything... it has sold over 100,000 units for several years now (145k in 2014). It's a force to be reckon with when you are talking about B-segment CUVs (since most of them are FWD like Soul). I'm guessing the next generation Soul will have AWD option.

 

Juke is very much in the segment, although on the sporty end. Mini is the god father of the segment and they will be back with stronger push next year when the new Countryman arrives.

 

FCA has said they expect about similar volume with 500X and Jeep Renegade twins. We'll see if that happens. For sure 500X will be the biggest seller for Fiat.

 

The one to watch is Mazda CX-3...

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I meant niche from a styling perspective. The fact that they're B size CUVs is almost irrelevant - it's the styling that attracts buyers. I don't see the Ecosport or HR-V competing directly with a Juke or Soul and vice versa. They appeal to totally different customers.

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Lots of older buyers love these small utes, and are moving away from 'traditional' big cars. Buick's #1 seller is the Encore.

 

Honda Civic and Accord onwers are trading in for HR-V.

 

So, time to roll out a [uS spec] Ford B size ute, but not call it "Eco-Sport".

Edited by 630land
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Lots of older buyers love these small utes, and are moving away from 'traditional' big cars. Buick's #1 seller is the Encore.

 

Honda Civic and Accord onwers are trading in for HR-V.

 

So, time to roll out a [uS spec] Ford B size ute, but not call it "Eco-Sport".

 

I agree... leave that name in Brazil and India. It's not that great.

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