Hackett's remedy for sticker shock

[Trailhiker]

On ‎12‎/‎5‎/‎2019 at 1:10 PM, rperez817 said:

 

Motor Trend's remark is correct. This has actually been the case for a long time. MSRPs of most Fords have been a lot more "premium" than the vehicles themselves. As a result, Ford continually resorts to offering massive rebates and other incentives.

 

A better approach would be the following.

1. Improve build and materials quality inside and out, redesigning as needed so they don't look and feel so cheap. This could mean an "emergency refresh" on models like 2020 Escape and 2020 Explorer.

2. Take out features that few customers want. This is part of the "reductive design" approach Hackett is talking about.

3. Add features that customers do want.

 

This will allow Ford to keep MSRPs stable, while reducing rebates and the like. Better for Ford, better for customers. 

It would be a whole lot cheaper just to buy more adds and therefore get better reviews.

[.I.]

On 12/5/2019 at 3:55 PM, rperez817 said:

"Reductive design" = "decontenting". Ford has lots of experience with that.

 

Hopefully, Hackett can figure out a way where "reductive design" allows Ford to improve the materials quality, fit, and finish of its vehicle interiors. This is an area where Ford continues to lag behind the rest of the industry.

 

 

Yes. Decontenting the vehicles, maybe designing it with unispiring style and almost identical as the old model, interiors with a lot of black hard plastic and horribles air vents and screens, with an body structure that cant pass the safety test....    Oh.....  That vehicle already exist... is the new Ford Explorer!

[jcartwright99]

22 minutes ago, falconlover 1 said:

 

 

Yes. Decontenting the vehicles, maybe designing it with unispiring style and almost identical as the old model, interiors with a lot of black hard plastic and horribles air vents and screens, with an body structure that cant pass the safety test....    Oh.....  That vehicle already exist... is the new Ford Explorer!

 

While some hate hard plastics, as a parent it's much easier to clean when your four year old has a tantrum and decides to launch his chicken nuggets with sauce. Just saying.  Not concerned about the ever change crash ratings but Ford will most likely add anything additional needed for next model year so it's on the recommended list. 

 

I think with the horrible launch, increase in price, and comparo's with the luxury wannabes from Korea, the Explorer has had some bad press. However, in a year I think they will be selling like hot cakes. At least that's my take. I think it's better than what's being portrayed right now.

[akirby]

28 minutes ago, jcartwright99 said:

 

While some hate hard plastics, as a parent it's much easier to clean when your four year old has a tantrum and decides to launch his chicken nuggets with sauce. Just saying.  Not concerned about the ever change crash ratings but Ford will most likely add anything additional needed for next model year so it's on the recommended list. 

 

I think with the horrible launch, increase in price, and comparo's with the luxury wannabes from Korea, the Explorer has had some bad press. However, in a year I think they will be selling like hot cakes. At least that's my take. I think it's better than what's being portrayed right now.

 

Even with those issues and higher prices they're selling almost as well as last year.  And I think you're right - within a year it will be outselling the old one.

[mpcmotorsports]

24 minutes ago, akirby said:

 

Even with those issues and higher prices they're selling almost as well as last year.  And I think you're right - within a year it will be outselling the old one.

The new Explorer is selling very well at my dealership, with the ST being the most popular model by far.

[rperez817]

2 hours ago, Trailhiker said:

It would be a whole lot cheaper just to buy more adds and therefore get better reviews.

 

Motor Trend's parent company just cancelled 19 of their print magazines. Probably best for Ford to spend their advertising dollars elsewhere. https://www.foliomag.com/ten-publishing-shuttering-19-print-magazines/

[silvrsvt]

1 hour ago, rperez817 said:

Motor Trend's parent company just cancelled 19 of their print magazines. Probably best for Ford to spend their advertising dollars elsewhere. https://www.foliomag.com/ten-publishing-shuttering-19-print-magazines/

 

RIP Muscle Mustangs & Fast Fords 

 

 

[papilgee4evaeva]

On 12/5/2019 at 1:32 PM, rmc523 said:

I use mine daily.  But obviously if you don't have a garage door, you don't need a homelink thing.  I'd be incredibly disappointed if they got rid of it.

 

That said, I wonder if they could integrate that system into the SYNC screen - instead of the physical button on the visor, you'd have "homelink" buttons on a menu in the center screen.

 

THAT'S thinking!    Someone write Hackett and get him on this!

At the house we moved into earlier this year, the garage only came with 1 remote.  We drive 3 vehicles and routinely use the garage doors, so of course Homelink is a necessity for us.

[HotRunrGuy]

On 12/5/2019 at 12:32 PM, rmc523 said:

 

That said, I wonder if they could integrate that system into the SYNC screen - instead of the physical button on the visor, you'd have "homelink" buttons on a menu in the center screen.

 

 

With so many GDO's having WiFi connectivity (like my Chamberin MyQ) this has be a no-brainer.  Heck, my WiFi extends out of the house, the vehicle could connect to the home network if needed.

 

HRG

[silvrsvt]

55 minutes ago, HotRunrGuy said:

With so many GDO's having WiFi connectivity (like my Chamberin MyQ) this has be a no-brainer.  Heck, my WiFi extends out of the house, the vehicle could connect to the home network if needed.

 

How many people are going to upgrade their Garage door openers to have this? 70% of people don't even use HomeLink ?

 

[akirby]

What they should do is make it a plug and play module that the dealer can add to any vehicle.  You just leave a spot for it in the visor (and all visors would need power).  It would literally be plug and play.

[probowler]

3 minutes ago, akirby said:

What they should do is make it a plug and play module that the dealer can add to any vehicle.  You just leave a spot for it in the visor (and all visors would need power).  It would literally be plug and play.

This is honestly a great idea. Reminds me of few years ago at Ford Parts, I saw you can actually buy the door-mounted keypads if your car didn't have one from the factory.

 

Other ideas could be including a subwoofer wiring harness even when a car sells with a basic radio, and then offer dealer accessory subwoofers for a quick and easy upgrade. Heated mirrors sounds like an easy upgrade if the wiring is included in the door. Or maybe you add some kind of MFT connection for aftermarket seat warmers.... when connected, it enables seat heater controls in the touch-screen climate controls.  Depending on how Ford advertises and supports such features, I could see parents or spouses buying vehicle upgrades as christmas or birthday gifts.

There's a lot of possibilities if ford is willing to think outside the box.

[92merc]

What I want to see is power ports at the inside mirror, and at the back of the vehicle.  Sole function: for powering dash cams.

[Kev-Mo]

31 minutes ago, probowler said:

This is honestly a great idea. Reminds me of few years ago at Ford Parts, I saw you can actually buy the door-mounted keypads if your car didn't have one from the factory.

 

 

 

I recently added the door mounted keypad from Ford Parts to the old '98 F150 I purchased in July.  Easy add-on and inexpensive to boot!   Keypad is the single greatest feature ever put on a vehicle and I can't possibly live without it now that I have had them on my Fords for so long.

 

"Every once in a while, an executive with a sharp pencil and dull brain asks why Ford continues to offer a feature none of its competitors bother with.

The company got the answer when it launched the Focus compact without a touch pad.

“We had to add it within a year because of customer demand,” 

 

    https://www.usatoday.com/story/money/cars/2019/10/19/ford-securicode-keypad-remote-keyless-system-door/4035371002/

 

Edited December 11, 2019 by Kev-Mo

[akirby]

32 minutes ago, Kev-Mo said:

 

I recently added the door mounted keypad from Ford Parts to the old '98 F150 I purchased in July.  Easy add-on and inexpensive to boot!   Keypad is the single greatest feature ever put on a vehicle and I can't possibly live without it now that I have had them on my Fords for so long.

 

"Every once in a while, an executive with a sharp pencil and dull brain asks why Ford continues to offer a feature none of its competitors bother with.

The company got the answer when it launched the Focus compact without a touch pad.

“We had to add it within a year because of customer demand,” 

 

    https://www.usatoday.com/story/money/cars/2019/10/19/ford-securicode-keypad-remote-keyless-system-door/4035371002

 

 

They've had the add on versions for a long time.  I added one to daughter's 2012 Focus (I even painted it to match).

[probowler]

It's such a great feature! I love being able to leave my keys in the center console and lock the doors.  Very useful when you go out for a run or hike and don't want to carry keys with you.  Keyless entry or not, it's just a bit of a different function/situational item.

[fuzzymoomoo]

1 hour ago, akirby said:

 

They've had the add on versions for a long time.  I added one to daughter's 2012 Focus (I even painted it to match).

 

My Focus came from the factory with that one. I guess the one integrated into the b-pillar was TI/ST only for MY2015. 

[Assimilator]

It's amazing to me the Keypad has survived even as the PaK (Phone as Key) tech becomes widely available or standard.  I think this is a feature people who use it love, but very few people actually use it and Ford could delete.

 

De-contenting is usually not about lowering prices, it has always been about raising margins.  This is one of those areas that's hard to compare to the competition because it's so complicated.  But you could argue what Hackett wants to do is fairly industry normal.

 

What bugs me about Ford in particular is that they seem to go out of their way to make sure their budget models are as visually unappealing and conspicuously cheap as possible. Prominent Black filler strips in the fascia, black plastic door handles and trim, even unique budget-only fascia designs.  Ford isn't the only one that does this, but other manufacturers spend less time on design differentiation to de-incentivize the lower models.  Ford has been off and on with this technique, right now it's full-on.

Edited December 11, 2019 by Assimilator

[jpd80]

50 minutes ago, Assimilator said:

It's amazing to me the Keypad has survived even as the PaK (Phone as Key) tech becomes widely available or standard.  I think this is a feature people who use it love, but very few people actually use it and Ford could delete.

 

De-contenting is usually not about lowering prices, it has always been about raising margins.  This is one of those areas that's hard to compare to the competition because it's so complicated.  But you could argue what Hackett wants to do is fairly industry normal.

The process is that the premium or fully loaded model is developed first, then the lower trims with less equipment. It is decontenting in engineering development terms but probably not in terms of the expected requirements of each trim level. The only thing open to debate is what features then become option instead of standard equipment, I think that's where EPLs come in and get real world feedback on current vehicles to fine tune areas where customers are unhappy.

 

Quote

What bugs me about Ford in particular is that they seem to go out of their way to make sure their budget models are as visually unappealing and conspicuously cheap as possible. Prominent Black filler strips in the fascia, black plastic door handles and trim, even unique budget-only fascia designs.  Ford isn't the only one that does this, but other manufacturers spend less time on design differentiation to de-incentivize the lower models.  Ford has been off and on with this technique, right now it's full-on.

It's hard because Ford wants to sell the richest trim mix it can and actively limits how many builds are planned, passive pressure to go up a trim level and get better value at purchase time and resale. I don't think they've got the options exactly right in the lower trims but maybe that perception is not shared by actual buyers. Indeed, Ford needs those EPLs to get to work on customer feedback and sort frivolous complaints from genuine gaps in customer wants and needs.

Edited December 12, 2019 by jpd80

[silvrsvt]

4 hours ago, Assimilator said:

It's amazing to me the Keypad has survived even as the PaK (Phone as Key) tech becomes widely available or standard.  I think this is a feature people who use it love, but very few people actually use it and Ford could delete.

 

The thing is that alot of people are technophobe and there are other people who are fine with the way things work the way they have it already.  Not everyone is a techy and it gets to the point that some things change just to change, without an appreciable increase in usability.  

Even though I have remote access system when I have my keys in my pocket, I still use the keypad to at least lock the car if I forget to and I don't have my keys on me. My wife uses it all the time to lock her keys in her Escape and many other people do the same. 

Edited December 12, 2019 by silvrsvt

[jpd80]

On 12/6/2019 at 2:55 AM, Deanh said:

decontenting will  only save trivial amounts...going to take new, cheaper lineups...ie the baby truck being released. This subject mirrors what I have said all along...you cant just continually raise pricing and rave about ATPs, the higher the price of a vehicle the smaller the market and the bigger the dependence on leasing programs, leaving out some frivolous features and saving maybe $1000 from MSRP wont solve this issue. So, it will come down to what features are deemed necessary in a more basic lineup...Ill be curious how this pans out...

Ford is painting itself into a corner here

[SoonerLS]

On 12/5/2019 at 12:32 PM, rmc523 said:

I laugh at a lot of new construction "2" car garages.  Maybe if you had 2 Smart cars.

Ford isn't the only one to raise prices and de-content. 

[jpd80]

3 hours ago, SoonerLS said:

Ford isn't the only one to raise prices and de-content. 

But not to the same degree,  Ford  is going way beyond the sweet spot in Mulally's business strategy

in order to attain Hackett's higher profit percentages. While that sounds like a great plan there will be

collateral damage that Jim hasn't anticipated.  We're already seeing it with Explorer where its sales

are not matching  production and inventory has now soared to over 67,000 going into winter.

 

Production of 2020 Escape is now two shifts at 18K/mth and matching USA/Canada/Mexico sales  but that's also way down from last year's three shifts and 27K/mth production....

 

 

 

 

Edited December 14, 2019 by jpd80

[akirby]

50 minutes ago, jpd80 said:

But not to the same degree, 

 

He was talking about home builders.....

[pictor]

 I just read today the Honda was de contenting the Fit, removing sensor packages for  the lower model lines, everybody does it. They did not reduce the price.