Mulally already shaking up Ford

[ZanatWork]

No one will know who's hit until the climb out is clearly underway. Ford is finally about to enter a year with a number of important updates (Super Duty, D3, Focus, Escape/Mariner, Shelby Mustangs) and the Edge/Aviator all coming down the pike. 2006 was a very lean year in that regard, as the CD3s were the only real "new" news in Ford land.

[RichardJensen]

Yeah thier sales are down but this is thier rock bottom, Ford hasn't hit rock bottom and over the past 5 years ford lost more than twice as many sales as GM has. I won't deny that GM definately still has a lot of crap on the dealer lots but with the redesigns and new products replacing old one, the new products are becoming highly competitive. GM has a much broader variety of vehicles due to thier many brands and I think that will help them specifically cater to certain groups of people.

 

We'll see in two years how far each has come, but I believe Ford still has rock bottom to hit.

How can you say GM has hit rock bottom?

 

Their largest division is only getting one new product between now and next fall: the Silverado.

 

I don't think that GM's sales slide has stopped.

 

Consider their oldest platforms:

 

G-body (Lucerne/DTS). I haven't scoped the DTS numbers, but Lucerne numbers are on a par with last year's LeSabre volume. Will G-body sales go up next year, or continue to trend downward?

 

W-body (Impala, Grand Prix, Lacrosse). GM's most important car architecture is also old enough to vote. Grand Prix and LaCrosse sales are both (IIRC) down year over year. GM has, apparently, nothing planned for any of the W-bodies before 2009, when apparently they're due to be replaced by the RWD Zeta. If GM goes the RWD route, they can pretty much kiss off retail sales under $27-29k. The LX cars have moved predominantly to fleets across their entry level ranges. Will sales move up for these vehicles next year?

 

Trailblazer/Envoy/Raineer/9-X. Do you see sales of these vehicles moving upwards?

 

Minivans: Are these models going to increase in volume? (Relay, Montana SV-6, Uplander, Terraza)

 

Consider their newest platforms:

 

GMT900 SUVs (Yukon, Suburban/Tahoe, Escalade). Only the Escalade SWB is showing improvement in sales, among all six of these models.

 

GMT900 flying-buttress trucks (EXT, Avalanche). Do you see sales for these units increasing next year?

 

Looking at GM, I see improvement on Delta volume, Epsilon flat to increased (strong response to Aura, vs. declining interest in G6 sedan and Malibu), declining W and G body sales, declining Sigma volume sales (ahead of new CTS).

 

On the CUV/SUV side, the new Lambdas will definitely sell, but will they offset declines on three fronts (minivans, midsize BOF SUVs, and the GMT900 fullsize SUVs)? I doubt it. Those are awfully big shoes to fill. The arguably less competitive Freestyle managed to offset declines in Explorer volume. It did not stave off declines in Explorer, Expedition, and Freestyle volume. I don't consider the Lambdas to be so much superior to the Freestyle that they will offset increased declines from three other families of products. GM's small SUVs should remain popular and hold their own (give or take).

 

On the truck side, I don't see outstanding performance by the GMT900 trucks: They match the F-Series, for the most part, and exceed it only marginally in fuel economy. The Sierra Denali offers far more HP than any F150, but both the increased performance and the six speed transmission are confined to this model--which is definitely not intended for work, and which starts in the $40k range (IIRC).

 

GMT900 volume--if they're lucky, will track performance for the end of this year (GM full size truck share of the new car market). I don't think sales volume for these products will track the first part of the year.

 

OTOH, if gas prices stay low throughout the winter, it may prompt some replacement truck buying, that had been put off through the summer months--and that may work to the advantage of GM--but not, I believe, so much that it will seriously disrupt the established Ford/Chevy/Dodge/GMC share of the market.

 

The compact trucks will continue to decline. The market, I think, is looking for a small truck replacement--something efficient, but with better passenger packaging than the typical small truck--and affordable. Think a cheaper, but more rugged Sport Trac.

 

On the whole, it's hard to predict an overall increase in sales for GM next year.

Edited September 22, 2006 by RichardJensen

[Mark B. Morrow]

This is why I think this guy will make all the difference.

 

"He's working on getting rid of his Lexus in favor of a Ford, possibly a Five Hundred sedan. He also has been familiarizing himself with Ford's lineup by driving a different model nearly every day, including the Ford Edge, the roomy crossover vehicle due on the market in November".

 

"An engineer by trade, he has already been sharing impressions of the vehicles with his team".

 

In addition he is eating in the employee cafeteria and personally answering some e-mails. Corporate execs have been too far removed from their customers and line workers. Most Ford guys at the Sr VP level have probably never sat in anything less than a Town Car and I would suspect most haven't driven the whole line.

[Tony Alonso]

The outside view just might be the thing that is needed to spark the momentum. I wish Alan the best of luck. As a side note, I find the Bill Ford/Mark Fields animated GIF amusing.

[Edgey]

In addition to the Sierra, isn't the new Malibu coming in a year? Chevy also has the new Aveo and Tahoe. But of course, GM is more than Chevy so we are really looking at a far more new product than just the Malibu and Sierra. Chevy is also a fairly well revamped line of vehicles reletive to Ford so there is less immediate need for a rush of all new vehicles. The difference with Ford is that they are putting all their new vehicles on the debt diet so no more goring themselves at the fleet and rebate buffets.

Edited September 22, 2006 by Edgey

[RichardJensen]

In addition to the Sierra, isn't the new Malibu coming in a year? Chevy also has the new Aveo and Tahoe. But of course, GM is more than Chevy so we are really looking at a far more new product than just the Malibu and Sierra. Chevy is also a fairly well revamped line of vehicles reletive to Ford so there is less immediate need for a rush of all new vehicles. The difference with Ford is that they are putting all their new vehicles on the debt diet so no more goring themselves at the fleet and rebate buffets.

Malibu is fall next year. New Aveo is new like the Expedition is new.

 

Also, GM is mostly Chevy. It's (I think) 75% of their total volume.

 

Further, Chevy sales are down more than Ford this year, so having newer vehicles is not the end-all/be-all.

[Edgey]

Malibu is fall next year. New Aveo is new like the Expedition is new.

 

Also, GM is mostly Chevy. It's (I think) 75% of their total volume.

 

Further, Chevy sales are down more than Ford this year, so having newer vehicles is not the end-all/be-all.

 

It would help if Chevy traded fleet sales for retail sales like Ford has been doing. So declining sales also isn't a bad thing if your retail sales are going up.

 

The new truck will make a monumental difference for Chevy next year, however Ford will be losing the Taurus so we will probably see Chevy easily overtake Ford as the bestselling brand in the states...I think!

 

Come to think of it...when was the last time any carmaker discontinued a car that carried MASSIVE volumes in order to save money? This has to be a first! 2007 is going to be a very tough year and I wish Ford would do a better job preparing people for some very bad numbers. However, 2008-2009 should be a boom year for Ford if everything falls into place.

Edited September 23, 2006 by Edgey

[RichardJensen]

The new truck will make a monumental difference for Chevy next year

I just don't see that happening. I don't see it producing even double digit gains in sales volume. It's a decent pickup, but it's not going to halt the slide away from pickups as personal vehicles.

[156n3rd]

Would this be a good time to ask if Ford will build something to compete against PTC and HHR?

[waymondospiff]

Would this be a good time to ask if Ford will build something to compete against PTC and HHR?

I don't know if it's ever a good time to ask that question...

 

...however, Ford won't be doing a heritage wagon. I know, those are famous last words, but instead, Ford has the Focus Hatchbacks & Wagon and will be introducing a crossover SUV thingy on the B chassis (Like the SynUS & Bronco concepts.) I'd expect the B-Class Bronco to be more of a Scion xB type competitor, but I really don't see the need for ANOTHER heritage compact wagon. Besides, the Focus Wagon is roomier than either the PT or HHR.

 

Scott

[DSenstad]

Would this be a good time to ask if Ford will build something to compete against PTC and HHR?

I hope not. although those things do make me smile.

[J-150]

They deserve to fail and go bankrupt for all their sins.

 

:rip:

 

 

 

then by that logic you deserve to die a painful death by cancer for your sins

[Eel]

Priceless also is the fact that if we would say: "Register to become a member of our forum and get a free Toyota T-Shirt" ..... you'll be the first one online to register....

 

 

Hey Lemon, go squeeze yourself!

[Hemiman]

They deserve to fail and go bankrupt for all their sins.

 

:rip:

 

 

"For we have ALL sinned and fallen short of the glory of God."

 

"For the wages of sin is death. But the gift of God is eternal life through Jesus Christ, our Lord."

 

"For while we were still sinners, Christ died for us."

 

"That if you confess with your mouth, Jesus as Lord, and believe in your heart that God raised Him from the dead, you will be saved."

 

"For everyone who calls on the name of the Lord will be saved."

 

"Therefore, since we have been justified through faith, we have peace with God through our Lord Jesus."

 

 

 

I just couldn't help my self.

[156n3rd]

I don't know if it's ever a good time to ask that question...

 

...however, Ford won't be doing a heritage wagon. I know, those are famous last words, but instead, Ford has the Focus Hatchbacks & Wagon and will be introducing a crossover SUV thingy on the B chassis (Like the SynUS & Bronco concepts.) I'd expect the B-Class Bronco to be more of a Scion xB type competitor, but I really don't see the need for ANOTHER heritage compact wagon. Besides, the Focus Wagon is roomier than either the PT or HHR.

 

Scott

I beg to differ on the part about roomyness. I did not buy a Focus wagon because it could not match the utility, room and comfort of the PTC. No disrespect intended, but the front part of the Focus cabin couldn't fit me comfortably and I'm only 5'9.5" and 212. Besides, the PTC has that cheesy retro look I crave and it is a solid little beast, very tough. :D

[DSenstad]

I have to question the facts here a little. My friend is 6'3" and has no trouble fitting into his Focus, I am slightly taller and a fair amount heavier than you and have no trouble fitting in either his or my own focus. That PTC was built off of the Neon platform which was never considered a tough platform.

 

It does have more cupholders however.

[ebritt]

I really don't think GM has gotten "it".

 

Sales are off more than Ford this year, and they have not developed a true customer orientation to their business. The decision to go RWD with Zeta is a classic car-guy gamble. It might work, it might not, but I'm going to guess that market research on this subject has been geared towards producing responses that make Lutz's idea look like the right idea.

 

Then there's this ludicrous reliance on the halo-car. I still consider the Solstice and Sky to be a failed attempt to distract buyers from the truly uncompetitive Deltas, the previous Epsilon, and the W-body. Verdict is still out on the new Epsilon, as seen in the Aura. At least the Aura looks good, if somewhat Cobaltish.

Acording to the latest issue of Popular Hotrodding the 06 Solstice GXP has sold out and there is a waiting list fro the 07's. The Sky Redline is doing nearly as well. A cool 260hp two seat convertible for les than 30K? That's cool.

 

In addition to the Sierra, isn't the new Malibu coming in a year? Chevy also has the new Aveo and Tahoe. But of course, GM is more than Chevy so we are really looking at a far more new product than just the Malibu and Sierra. Chevy is also a fairly well revamped line of vehicles reletive to Ford so there is less immediate need for a rush of all new vehicles. The difference with Ford is that they are putting all their new vehicles on the debt diet so no more goring themselves at the fleet and rebate buffets.

The Malibu....blech

 

The Implala.....boring, fast! but still boring.

 

The Monte Carlo.....rolling turd.

 

The Aveo.....very small rolling turd.

 

Dull crappy cars.

 

 

 

The HHR now is a pretty cool car. Cheap, Ecotec engine (very reliable) and fat fenders.....love it.

[Guest Sixcav]

See that just shows you how two people can look at the same cars and see two different things. To me the HHR is hideous. It's a cheap hideous knock off of the hideous PT Crusier. lol The Impala may be boring to you but I think it's style overall trumps the Fusion or the 500. Speaking of boring, have you even seen a 500? lol I'm not real crazy about the Monte Carlo and I think the Malibu is safely conservative without being offensive. It's about as plain jane as a car can get. I've heard the new Malibu will be a little more edgy on the design. We'll see.

[RichardJensen]

Acording to the latest issue of Popular Hotrodding the 06 Solstice GXP has sold out and there is a waiting list fro the 07's.

Oh, undoubtedly the Solstice is selling.

 

But it's not selling Grand Prixs.... and that was the hope.

[retro-man]

Hate to equate everything to the way it used to be done, but after all, I am "retro-man": Remember how Galaxies - the good ones - used to wear T-Bird emblems to advertise what's under the hood. That presupposes two things: 1.) The existence of an aspirational (halo) car within the brand, and 2.) Something worth bragging about to put under the hood.

 

Is there any reason that approach couldn't work today? I mean besides the fact that our lineups are full of FWD transportation appliances that have nothing in common with enthusiast cars - and thus are incapable of receiving anything special under the sheetmetal even if the manufacturer were so inclined?

 

The Solstice is a beautiful car - I just had one in my rearview mirror on the way home - but the approach is back-asswards: it is a tarted up Cavalier. That halo can't shine on the rest of the lineup. We all know sh*t don't roll uphill. Especially if there's nothing but a FWD Maytag of a car waiting for it at the top.

 

For the record, I'm with ebritt on the HHR. It seems to be doing well for Chevy.

Edited September 23, 2006 by retro-man

[Guest Sixcav]

The Solstice is a beautiful car - I just had one in my rearview mirror on the way home - but the approach is back-asswards: it is a tarted up Cavalier.

 

I'm not sure what you mean there. The Solstice is about as uncavalier as can be. Mechancially, price wise, purpose, even target consumer, it has nothing in common with a cavalier.

[ebritt]

See that just shows you how two people can look at the same cars and see two different things. To me the HHR is hideous. It's a cheap hideous knock off of the hideous PT Crusier. lol The Impala may be boring to you but I think it's style overall trumps the Fusion or the 500. Speaking of boring, have you even seen a 500? lol I'm not real crazy about the Monte Carlo and I think the Malibu is safely conservative without being offensive. It's about as plain jane as a car can get. I've heard the new Malibu will be a little more edgy on the design. We'll see.

The malibu. Impala and Monte look like 3 sizes of the same car. smal medium and large, flat , no flare.....boring.At least the HHR has some personailty to it. The aftermarket , I'm sure will have some cool parts for . There are some awesome peices out there for the PT Cruiser. Yes I have seen the 500, looks as boring as the Impala.

[retro-man]

I'm not sure what you mean there. The Solstice is about as uncavalier as can be. Mechancially, price wise, purpose, even target consumer, it has nothing in common with a cavalier.

I mean it's got a 4-cylinder, 177hp, 166 lb. ft. ecotec motor in it. What are they going to do? Slap that motor in the Grand Prix and stick a "Powered by Solstice" badge on the fender to add luster to the lineup? My point is that the Solstice - no matter how great a car it may be - is not in a position to benefit the rest of the lineup in any way. Halo cars have to have something to give the rest of the lineup, and the rest of the lineup has to be able to recieve that gift.

 

Ford has a great organ donor car in the Mustang, but nothing in the rest of the lineup that can recieve what the Mustang has to give. T-Bird and Lincoln could have filled the donor role as well, but they are too starved and weak by now to help.

[jpd80]

I really don't think GM has gotten "it".

 

Sales are off more than Ford this year, and they have not developed a true customer orientation to their business. The decision to go RWD with Zeta is a classic car-guy gamble. It might work, it might not, but I'm going to guess that market research on this subject has been geared towards producing responses that make Lutz's idea look like the right idea.

 

Then there's this ludicrous reliance on the halo-car. I still consider the Solstice and Sky to be a failed attempt to distract buyers from the truly uncompetitive Deltas, the previous Epsilon, and the W-body. Verdict is still out on the new Epsilon, as seen in the Aura. At least the Aura looks good, if somewhat Cobaltish.

 

Richard, Zeta was given to Holden to develop the VE Commodore. The platform, which was needed anyway, cost US$750 Million to develop. The costs were born by Holden so GM in NA can't loose.

Btw, Don't tell the Camaro lovers the engineering was all done in Melbourne, that would make their halo-car un-American wouldn't it?

Not 3 weeks after release, someone turboed a manual 6.0 litre SS Commodore, seen at Melbourne drags:

Drive Review of VE SS Commodore (this is what car guys make)

Maybe Mullaly will take a closer look at Ford Australia and Orion platform(2008 Falcon)

Edited September 23, 2006 by jpd80

[Guest Sixcav]

I mean it's got a 4-cylinder, 177hp, 166 lb. ft. ecotec motor in it.

So what. What was GM supposed to do, develop an entirely new 4 cylinder version just for the Solstice / Sky platform? The 4.6 V8 at Ford is shared in the Mustang, Explorer, F150 and Crown Vic, all of which have nothing to do with one another from a "type of car" standpoint.

 

My point is that the Solstice - no matter how great a car it may be - is not in a position to benefit the rest of the lineup in any way. Halo cars have to have something to give the rest of the lineup, and the rest of the lineup has to be able to recieve that gift.

 

Says who? Is this some sort car psychology or something? The Solstice is what it is. It's a roadster. It's a small two seater that handles great, is reasonably quick and looks cool. Why does it have to "give" something to the rest of the lineup? The point is to sell cars. If the Solstice sells well it achieved the goal that GM had for it, which is to sell them. Do you really think of a Corvette and think "Gee that Impala sure is nice too."? I don't know where this line of thought came from but it doesn't work this way in the real world. If car companies only build cars with the specific purpose of "benefitting the rest of the lineup" they will not only miss out on making some really great cars they will also soon find that everything in their lineup looks the same and before you know it none of it is selling. The Solstice is a niche car. I considered buying one not too long ago but frankly the dealer just wanted too much money for it. I'd wait until the hoopla dies down if ever. But guess what, I didn't drive away in a G6 instead. It was never even mentioned as an option by any of the salesman. Nor any other Pontiac. So did they fail to do their job or is it just obvious they shouldn't try to sell a sedan to a man that came looking for a roadster?

Edited September 23, 2006 by Sixcav