Ford to Reduce Focus Options in Next Gen

[Biker16]

 

I only say it when it's obvious that you didn't read something.

 

Do you?

[RichardJensen]

 

Do you?

 

yep.

 

Like in this most recent instance, you cherry-picked a single element in Ford's overall profit forecast and took it entirely out of context.

[Biker16]

 

yep.

 

Like in this most recent instance, you cherry-picked a single element in Ford's overall profit forecast and took it entirely out of context.

 

Ok

[RichardJensen]

 

Ok

 

Exactly. You can either admit that you read the whole article and cherry-picked an irrelevant detail to score a point, or you can admit that you didn't read the whole article.

 

Or you can concede the point, as you did with the colors-are-in-build-combinations argument.

Edited September 14, 2016 by RichardJensen

[Biker16]

 

Exactly. You can either admit that you read the whole article and cherry-picked an irrelevant detail to score a point, or you can admit that you didn't read the whole article.

 

Or you can concede the point, as you did with the colors-are-in-build-combinations argument.

 

Like using an article from 2014 to infer something about a 2017 model, right?

 

Are you ready to move on from this yet?

 

I only have another 20 months to watch Ford cars sales continue to decline from neglect,and watch other automakers take marketshare and profits.

[RichardJensen]

 

Like using an article from 2014 to infer something about a 2017 model, right?

 

That would be an example of constructing an argument out of reliable data sources observe how it works:

 

DATA:

 

1) The sedan market is softening

 

2) GM is selling a lot of vehicles to subprime customers (data elsewhere)

 

3) In 2014, in a stronger sedan market, Cruze customers had the lowest FICO score in a survey of car purchases

 

INFERENCE:

 

IF GM is selling many cars to subprime customers, and those customers included a significant number of Cruze sales in a stronger overall market, then it is likely that GM is still selling a high percentage of Cruzes to subprime customers.

 

See how that works? You take facts and construct an argument about something which cannot be demonstrated directly.

[RichardJensen]

Again, do not confuse my inferences with your unwillingness to read.

[jpd80]

http://www.reuters.com/article/us-ford-investors-idUSKCN11K1D0

 

Last week, Ford lowered its 2016 pretax profit forecast to $10.2 billion from at least $10.8 billion because of a charge in the third quarter for an expanded vehicle recall.

 

 

Ford said it "plans to achieve cost efficiencies averaging $3 billion annually between 2016 and 2018 and is adding new processes like zero-base budgeting to further its business transformation."

 

 

This will "offset the vast majority of costs being added to strengthen Ford’s business," but will not be enough to offset higher regulatory and vehicle development costs for what it calls emerging opportunities, such as electric vehicles.

 

 

I think Biker was selectively quoting but when we see the full picture it makes a lot more sense.

 

 

The automaker said automotive capital expenditures will rise to 5.6 percent of automotive revenue in 2018, from 4.9 percent in 2016. It will decline after 2018, Ford said.

 

Most of the capital allocation will be for vehicle development and be returned to shareholders. Ford said it will be able to maintain cash from automotive operations at or above $10 billion in a downturn and continue to pay regular dividends.

 

In July, Shanks said the automotive sales boom in the United States since the 2008-2009 downturn was over, but that sales would not crater as they did during the last recession.

 

So Ford expects to maintain around $10 Billion cash from automotive operations in a down turn,

that is digging deep and keeping the cash coming in spite of increasing investment.

 

The only negative is a hit Ford is taking this quarter which pulls back 2016 to $10.2 Billion,

down for the earlier prediction of $10.8 Billion.

Edited September 14, 2016 by jpd80

[RichardJensen]

 

 

I think Biker was selectively quoting but when we see the full picture it makes a lot more sense.

 

Yeah. He posted more of the article elsewhere.

[fuzzymoomoo]

 

I don't care to argue with you about something so pointless like the number of paint colors, you are obviously still sore about our previous interactions.

 

The predicament Ford has put itself in is its own making, the market For compact cars has contracted mostly at the expense of weaker entrant like the Focus and Dart, while stronger and newer products like the civic and Cruze have had major increases in market-share, volume and Pricing.

 

The focus simply isn't a Strong product at this time ,making it cheaper will not change it's fortunes, just reduce its profitability.

YOU BROUGHT IT UP!!!

[jpd80]

I guess the point of this thread was to highlight Ford saving money by reducing the build permutatons

from 200K to 300 to just 30 in the next gen. Perhaps that goes to bundling optons into certain models

as exampled by Fuzzy and Pioneer earlier - thinks like Sunroof only available on higher series.

 

I think this is where Ford really needs to have its finger on the pulse with buyers and start building

the kinds of cars these people want with the options they want.

 

Perhaps proving more standard equipment on dedicated, themed models is a better way to fly

where each Focus model has bundled options or features theme to suit that group of buyers

rather than just the usual poverty pack, mid range and high series..

Edited September 15, 2016 by jpd80

[jpd80]

 

Yeah. He posted more of the article elsewhere.

Yeah, not trying to rip him here, just trying to understand what his angle is.

 

I don't see it as all doom and gloom, more like controlling the finances ahead of the slowdown...

[ANTAUS]

Thats one of the few things I've liked about Honda's trim levels DX, LX, EX, keep it simple. If you want more toys, keep going up. Also helps in the resale market for the sale reason, you know directly what trim level you want according to your needs.

[fuzzymoomoo]

I guess the point of this thread was to highlight Ford saving money by reducing the build permutatons

from 200K to 300 to just 30 in the next gen. Perhaps that goes to bundling optons into certain models

as exampled by Fuzzy and Pioneer earlier - thinks like Sunroof only available on higher series.

 

I think this is where Ford really needs to have its finger on the pulse with buyers and start building

the kinds of cars these people want with the options they want.

 

Perhaps proving more standard equipment on dedicated, themed models is a better way to fly

where each Focus model has bundled options or features theme to suit that group of buyers

rather than just the usual poverty pack, mid range and high series..

Yeah, but no free standing options at all? That's just unacceptable no matter what way you try to spin it. I can see some of not all being unavailable on the lowest trim level but a sunroof, *insert touch screen system here*, and some kind of appearance package should be available for any customer who wants one no matter what kind of car you are buying.

[jasonj80]

Yeah, but no free standing options at all? That's just unacceptable no matter what way you try to spin it. I can see some of not all being unavailable on the lowest trim level but a sunroof, *insert touch screen system here*, and some kind of appearance package should be available for any customer who wants one no matter what kind of car you are buying.

The buying public they gravitate toward the Honda and Toyota Subaru model. Issue becomes with to many options is that you can never find the one equipped on a dealers lot the way you want. Build only a few build combinations the dealer can trade for a car because the model and color actually exists. Some Options will become dealer installed just like the civic and subarus. I do see Ford having 1 or 2 option package on each model, but the days of the $65 security package and $195 reverse sensing system are gone. it also gives the perception that you're charging for everything and nothing is really included.

[2b2]

I dunno if it would work for Ford (or Lincoln) but

for a (mid/)premium brand (no names ) I've suggested 3 trim-levels with just 2 stand-alone options: Leather & moonroof

[fuzzymoomoo]

I dunno if it would work for Ford (or Lincoln) but

for a (mid/)premium brand (no names ) I've suggested 3 trim-levels with just 2 stand-alone options: Leather & moonroof

Even this I would be ok with. I can see not having 200,00 build combinations but at the same time don't artificially limit yourself. Seems like an idea waiting to bite them in the ass if gas prices ever go back up.

[Pioneer]

I would be happy with an automatic transmission that worked correctly. Then maybe I wouldn't have to order an obscure product to get the options I want with a car that's reliable.

[akirby]

Having bought several Hondas in the late 80s early 90s I like the fewer more inclusive trim levels. Back then it was DX, LX, EX with some dealer installed options. This made it easy to find what you wanted in stock - all you had to worry about was color and transmission.

 

A MKX Reserve has the following options:

 

7 or so exterior colors

3 interior colors

FWD or AWD

3 wheel choices

2 engine choices

Technology Package

Climate Package

Driver's Assistance Package

Luxury Package

Revel Audio system

Enhanced Security

Tow package

 

There were no vehicles in stock that the dealer could find like we wanted. We did not want to wait for a special order this time so we did without the DA and Tow package.

 

Ford already has at least 3 and sometimes 4 models for each vehicle. I would like to see more bundled in the higher trim levels and fewer stand alone options. I'm sure the dealers would too.

 

I understand that some people want to cherry pick and don't want to pay for options they don't want but nothing is perfect.

 

Making wheels a dealer accessory for the same price as factory would also help. Presents some logistics issues but would make more customers happy.

[fordmantpw]

You want to see a big options list? Check out the '17 Super Duty. Everything is an option. It has to be hell for sales folks.

 

But, it's a truck, used for everything from bouncing around in an oil field to fancy Joe towing his fifth wheel cross country in his Platinum F450. I don't see any other way around it in the Super Duty trucks. Well, they could at least include Home Link in Lariat and up...

[Biker16]

 

That would be an example of constructing an argument out of reliable data sources observe how it works:

 

DATA:

 

1) The sedan market is softening

 

2) GM is selling a lot of vehicles to subprime customers (data elsewhere)

 

3) In 2014, in a stronger sedan market, Cruze customers had the lowest FICO score in a survey of car purchases

 

INFERENCE:

 

IF GM is selling many cars to subprime customers, and those customers included a significant number of Cruze sales in a stronger overall market, then it is likely that GM is still selling a high percentage of Cruzes to subprime customers.

 

See how that works? You take facts and construct an argument about something which cannot be demonstrated directly.

 

That does not mean anything other than you are assuming Something, based upon a model in its 4th year of production vs one in its 1st year. Also all Cruzes will not be sedans.

 

Your sub prime argument ignore that fact that GM's sub prime lending has decreased From 2014 not increased.

 

You drawing causation From the data not correlations form the data.

 

You don't know how much sub prime sales are driving Cruze sales, even if you did you cannot give an accurate measurement of risk to GM because this risk is being spread through Bonds, CDS, etc.

 

From the plant utilization for the focus, the Cruze looks more profitable. and in the end that is what should matter.

 

 

 

[Biker16]

I think Biker was selectively quoting but when we see the full picture it makes a lot more sense.

 

 

There isn't any real meat to the article it says very little about vision, direction or strategy other than to Use broad terms to describe a transformation. but a transformation into to what?

 

I remember the mid 2000s when Ford Would constantly go Though these "Reevaluations" which always resulted in products being canceled and scaled back and almost never any new products to spur growth.

 

This led to Cancellation of cougar, LS, Etc. and north america To continue to use C170.

 

So Ford expects to maintain around $10 Billion cash from automotive operations in a down turn,

that is digging deep and keeping the cash coming in spite of increasing investment.

 

The only negative is a hit Ford is taking this quarter which pulls back 2016 to $10.2 Billion,

down for the earlier prediction of $10.8 Billion.

 

you need to know what they Say about plans.

 

What is "zero-base budgeting"

 

http://www.bain.com/publications/articles/radical-redesign-through-zero-based-budgeting.aspx

 

 

 

 

I don't really know how This will play out, but like most tools they tend to be used to reinforce existing prejudices and policies Rather than transforming the business.

[silvrsvt]

 

I don't really know how This will play out, but like most tools they tend to be used to reinforce existing prejudices and policies Rather than transforming the business.

 

I know how its going to play out...you'll keep posting Ford is wrong and your right no matter what facts are presented to you. Why do you even bother? I guess you like negative attention then?

[Biker16]

 

I know how its going to play out...you'll keep posting Ford is wrong and your right no matter what facts are presented to you. Why do you even bother? I guess you like negative attention then?

 

Of course, it's not like I own Focus or two.

 

I HOPE FORD FIGURES THIS OUT, I Really do but all news doesn't inspire confidence, they are in recession mode before the recession while the competition is eating their lunch.

 

Ford has Strutural problems they need to resolve, I just don't like the constantly taking the Easy way out of their problems.

 

I.E. covering up structural problems with PR distractions, like the Robot car announcement.

[BORG]

When a car costs $33K+ I never understood why there are so many nickle and dime options. It's always irritating to me that I can't just find the fully-speced model on the lot, instead it's missing a $100 feature that makes it a no sale.