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Ford Motor Company 2020 2Q Quarterly Sales Report


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10 minutes ago, bzcat said:

The 1.5 EB is fine. I don't think it is the reason why Escape sales seems to be treading water.

 

I think this breaks down to a couple of things combined:

 

1. Ford let the old Escape and C-Max linger on too long so it lost a significant portion of return buyers with 36 months lease. Some might have taken up on the mid cycle refresh model but they are not going to come back a 3rd time for the same basic model. Those lost sales in year 6 and 7 of the model cycle can really cripple the sales or next gen. Think of all the previous C-Max owners now driving RAV4 hybrid...

2. Competition step on Escape's throat the last 2 years with much better and improved products. Compact CUV is the most intensely contested segment now and everyone was playing their A game here. Once you fell down from the top 2 or 3 position in a segment, it's hard to climb back.

3. The redesign doesn't look premium enough. This is obviously subjective opinion but I question Ford's decision to put a black plastic rear bumper on the Escape and a bunch of little styling details that make the car look cheap. I'm sure that saved money but it didn't make a good first impression. This is an easy fix.

4. There is some questionable use of low grade plastic inside. Some people don't mind but if you sat in Mazda CX-5 and Escape back to back, you may be wondering why Escape is more expensive. So the car is sending some mixed messages on value proposition.

5. Ford is clearly trying to control volume. Hackett is all about increasing margin which is fine but you can't continue to limit volume to try to improve margin because the high fixed costs. At some point, the bills will need to be paid. I think Ford is exporting Escape from Louisvelle to most of the Americas... For example, the new Kuga just went on sale in Argentina and it is imported from the US instead of the previous one from Spain. So maybe Ford is doing ok on utilization overall... hard to get a clear read unless you have access to better data. 

 

I think your right and once the Bronco Sport hits the market (which should be A game material) that will impact the direction that Ford will take with the Escape...

 

 

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40 minutes ago, silvrsvt said:

 

I think your right and once the Bronco Sport hits the market (which should be A game material) that will impact the direction that Ford will take with the Escape...

 

 


What direction do you think ford will take with the escape?

 

I think most people will find the sport to be the better looking vehicle of the two, there are a few question marks about the sport that I think could affect its sales though, size and price. I think one of the issues for the escape sales is price and with sport supposedly being more expensive, that could affect its sales. Size is also another concern, for me at least. All the auto websites have been comparing it to the renegade or compass. Some on these forums have compared it to the size of the previous gen escape. All of those seem too small. One of the biggest complaints about the old escape was rear seat legroom and that’s why the current escape has the sliding rear seat. Not having the same legroom and sliding seat seems like it could be a big mistake for the sport. I personally would have liked to see the sport being slightly larger than the current escape.

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7 minutes ago, akirby said:

First quarter Escape sales weren't bad at all.  I wonder if that was mostly fleet sales or if something else happened this quarter? 


they were down 20% in Q1, which was the worst of any ford suv not named flex, but definitely not bad compared to this quarter. Maybe Q1 sales were bolstered by heavily discounted previous gen escapes? For reference, Q1 had 48k sales and Q2 was 36k.

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Quote

"Ford Posts Best Retail Share In Five Years"

 

This is great news. With fleet sales unlikely to return to levels prior to the Covid-19 induced downturn anytime soon, hopefully Ford will continue ramping up its efforts selling non-commercial vehicles to real, retail consumers.

Edited by rperez817
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11 minutes ago, T-dubz said:


they were down 20% in Q1, which was the worst of any ford suv not named flex, but definitely not bad compared to this quarter. Maybe Q1 sales were bolstered by heavily discounted previous gen escapes? For reference, Q1 had 48k sales and Q2 was 36k.

 

Adjusted for the Covid-19 dropoff in March, Escape was on target to sell 55K 1Q2020.   That's 220K/yr.   In 2018 Ford sold 272K Escapes.   That's not terrible considering all the complaints about prices being too high.

 

We know you hate the Escape styling and prefer the Sport but there are hundreds of thousands of buyers who will think just the opposite.   Having both is a win/win for Ford if they play it right.

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25 minutes ago, akirby said:

First quarter Escape sales weren't bad at all.  I wonder if that was mostly fleet sales or if something else happened this quarter? 

 

This only applies to my dealer, but he had nine Escapes on his lot back in April. He now has one.  Hard to buy a new Escape if there aren't in any stock.  I wonder if it's the same for other rural dealers.

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39 minutes ago, T-dubz said:


What direction do you think ford will take with the escape?

 

I think most people will find the sport to be the better looking vehicle of the two, there are a few question marks about the sport that I think could affect its sales though, size and price. I think one of the issues for the escape sales is price and with sport supposedly being more expensive, that could affect its sales. Size is also another concern, for me at least. All the auto websites have been comparing it to the renegade or compass. Some on these forums have compared it to the size of the previous gen escape. All of those seem too small. One of the biggest complaints about the old escape was rear seat legroom and that’s why the current escape has the sliding rear seat. Not having the same legroom and sliding seat seems like it could be a big mistake for the sport. I personally would have liked to see the sport being slightly larger than the current escape.

 

It's essentially the Escape with a boxy body.  So it'll presumably be the same size inside as the latest Escape.

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With the demise of the Fiesta, Focus, and soon the Fusion, Ford really needs to step up and do what it takes to massage the new Escape into a decent seller.

 

As an owner of a new Escape, I do believe the Escape has the capability to be a decent seller. I would guess Ford is coming up with some tweaking for the 2021 MY after some feedback from dealers and others. The launch seemed to go well, I can attest to good build quality, and no recalls so far.

 

There is hope when you consider the RAV4 gas tank and suspension issues, and now the CRV hybrid is delivering fuel economy 3-4 mpg below EPA and more than 10mpg below what I get with my Escape hybrid. And the 2.0 turbo motor on the Escape is better than anything RAV4 or CRV offers excepting the 300hp Prime that costs over $40,000.

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21 minutes ago, mackinaw said:

 

This only applies to my dealer, but he had nine Escapes on his lot back in April. He now has one.  Hard to buy a new Escape if there aren't in any stock.  I wonder if it's the same for other rural dealers.

 

My local dealer (rural) has 8 new Escapes in stock. They’ve been there all spring. Three are three black SE’s that are so bland and drab that whoever buys them will have to check their pulse when getting out of them to see if they’re still alive. I agree that a little effort from Ford in the way of wheels and exterior bright work for the SE models would help a lot. It’s too bad the styling is what it is - apparently the new platform provides a good driving experience and  the drivetrains are much improved- complaints about the 1.5 NVH not withstanding.

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9 minutes ago, Trader 10 said:

 

My local dealer (rural) has 8 new Escapes in stock. They’ve been there all spring. Three are three black SE’s that are so bland and drab that whoever buys them will have to check their pulse when getting out of them to see if they’re still alive. I agree that a little effort from Ford in the way of wheels and exterior bright work for the SE models would help a lot. It’s too bad the styling is what it is - apparently the new platform provides a good driving experience and  the drivetrains are much improved- complaints about the 1.5 NVH not withstanding.

 

When I put my Escape up against an SE, the differences are dramatic in a big way. I get it...I paid $34,500 for mine including FL sales tax and licensing fees with the 0%72 month loan.

 

But man, the differences shouldn't be that stark. It's as if Ford went out of it's way to make the SE as unattractive as possible. I don't think the SE is competitive right now. We will see what appearance packages are offered for 2021. Seems to.me Ford did a nice black appearance package on the previous SE and I see them all over the place, and they look good. 

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I think a lot of it has to do with getting people through the door in the first place.

With so many vehicles on the market to choose from, aggressive advertising is

everything in getting those deals done and I'd imagine that you wouldn't have to

be "off" by much to affect sales flow, it could even be lousy finance rates.

 

Whatever is causing Escape's sales contraction will only worsen with the arrival of Bronco Sport,

Ford seems to be wounding itself with entry level or volume  trims  not selling as they should

and I wonder if the issue is now down to cross shopping before people set foot in dealerships.

Edited by jpd80
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5 minutes ago, jpd80 said:

I think a lot of it has to do with getting people through the door in the first place.

With so many vehicles on the market to choose from, aggressive advertising is

everything in getting those deals done and I'd imagine that you wouldn't have to

be "off" by much to affect sales flow, it could even be lousy finance rates.

 

In the U.S., it's a regional thing. Here in central FL, Ford offers noncompetitive lease deals compared to Toyota and Honda. In Metro Detroit, Ford offers very competitive lease deals, and I bet the new Escape does much better there. 

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9 minutes ago, FordBuyer said:

 

In the U.S., it's a regional thing. Here in central FL, Ford offers noncompetitive lease deals compared to Toyota and Honda. In Metro Detroit, Ford offers very competitive lease deals, and I bet the new Escape does much better there. 

And that's what I'm getting at, maybe it doesn't even get to any perceived faults with the vehicle

if buyers are seeing more attractive deals from competitors.

Edited by jpd80
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1 hour ago, Trader 10 said:

My local dealer (rural) has 8 new Escapes in stock. They’ve been there all spring. Three are three black SE’s that are so bland and drab that whoever buys them will have to check their pulse when getting out of them to see if they’re still alive. I agree that a little effort from Ford in the way of wheels and exterior bright work for the SE models would help a lot. It’s too bad the styling is what it is - apparently the new platform provides a good driving experience and  the drivetrains are much improved- complaints about the 1.5 NVH not withstanding.

 

My dealer's supply of Escapes was heavy to Titaniums and SEL's.  Even one hybrid. All are gone but one, and I'm not sure what model that is.  

 

Myself, I like the styling, and consider it both modern and contemporary.  And that front end is very unique.  When one comes my way, I know what it is.  I can't say that with most CUV's on the road.  

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1 hour ago, mackinaw said:

 

This only applies to my dealer, but he had nine Escapes on his lot back in April. He now has one.  Hard to buy a new Escape if there aren't in any stock.  I wonder if it's the same for other rural dealers.


per CarGurus.com, there are 172 2020 escapes within 50 miles of my zip code. Of those, 142 have been on dealer lots for 90 days or more. 
 

nationwide, there are 22487 escapes listed on their website with 16709 being on the lot for 90 days or more.

 

so basically 75-80% of stock has been on dealer lots for 90 days or more.

Edited by T-dubz
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Price is not the issue. Escape MSRP is right in line with the competition.

 

I already posted on all the factors that I think is leading to this result of 50% lower sales vs. last year. Even if you adjust for Covid, it is still down significantly and this is a problem for Ford because this is a growing segment - Ford is bleeding market share in the biggest segment. Bronco Sport may help but I keep coming back to this theme of mind share... Ford let the previous gen Escape rot into old age and it fell out of contention from a lot buyers in the segment. It will take time to restore that mind share. You won't be selling cars if people don't remember you have a competent model in the segment.

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31 minutes ago, bzcat said:

Price is not the issue. Escape MSRP is right in line with the competition.

Lack of competitive financing is killing sales at Ford, just ask deanh and icecapades.

 

So many people now go on line and cross shop before ever visiting a dealer and all

most of them do is compare the monthly payment.

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2 minutes ago, jpd80 said:

Lack of competitive financing is killing sales at Ford, just ask deanh and icecapades.

 

So many people now go on line and cross shop before ever visiting a dealer and all

most of them do is compare the monthly payment.


Ford's actual website shows the worst deals. Search individual dealers (which I realize average Joe idiot isn't going to do) and you can get much better deals. 

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41 minutes ago, T-dubz said:


per CarGurus.com, there are 172 2020 escapes within 50 miles of my zip code. Of those, 142 have been on dealer lots for 90 days or more. 
 

nationwide, there are 22487 escapes listed on their website with 16709 being on the lot for 90 days or more.

 

so basically 75-80% of stock has been on dealer lots for 90 days or more.

And that would be because production news stopped nearly three months ago,

It's gonna take a while to move that older stock, maybe some incentives coming

from Ford (final payment thing?) to move stubborn inventory.

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25 minutes ago, fuzzymoomoo said:


Ford's actual website shows the worst deals. Search individual dealers (which I realize average Joe idiot isn't going to do) and you can get much better deals. 

That's the thing with so many now shopping on line, they just compare deals on the main Ford website

and of course, the competition will always play much better to Ford's national pricing and rates.

I think the real issue is fewer buyers are now coming to Ford dealers in the first place and that

is something Ford needs to address.

 

I think that this is a failing in Ford's regionalised incentive strategy, good in theory to targets specific regions

but that plays so badly to online shoppers looking for lazy comparisons between brands. How long and how

much this hurts Ford depends on whether Ford prefers to see Ford credit making big profits versus lost sales.

It's the Dearborn suits playing games with figures to put Hackett in a happy place. Meanwhile dealers get shafted.

 

Edited by jpd80
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15 hours ago, silvrsvt said:

Only major disappointment given the current conditions is the Escape sales. 

 

The Ranger and Explorer are nice surprises, along with Lincoln sales dropping less then 20%. 


Im not surprised to see the Ranger sales are up.  I have been seeing a lot more of them in my area.

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39 minutes ago, tbone said:


Im not surprised to see the Ranger sales are up.  I have been seeing a lot more of them in my area.

Ranger is doing pretty well and getting close to 2nd place. I'm really surprised with Explorer with all the bad press it's got. I like the ST, but a little afraid to buy it.

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