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Ford sales collapse in July


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Ford sold less cars in July than Hyundai, Nissan, and Honda- and GM's, Nissan's, and Stellantis' sales are not even reported yet.  I know the chip shortage has been a bear for the whole industry, but Ford seems to have been absolutely slammed.  Someone appears to be asleep at the wheel.  I just wonder what the long term implications will be sales wise for Ford. 

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46 minutes ago, mackinaw said:

No surprise that Ford's sales tanked in July.  What is surprising is that transaction prices for Ford SUV's was $42,000 in July, a $6,200 increase from last year.

 

I imagine most every manufacturer's ATP is way up. Nobody is really putting deep discounts on their vehicles right now, they don't have to.

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6 minutes ago, Anthony said:

 

I imagine most every manufacturer's ATP is way up. Nobody is really putting deep discounts on their vehicles right now, they don't have to.

 

Toyota and Honda dealers in Central Florida dealers still have a decent inventory and advertise cut rate lease deals even lower than precovid. Ditto for Hyundai and Kia. Meanwhile, Mullinax Ford has less than 290 vehicles, and some of those are in transit. Normal inventory for them is 3,000+. 

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4 hours ago, Anthony said:

 

I imagine most every manufacturer's ATP is way up. Nobody is really putting deep discounts on their vehicles right now, they don't have to.

I was seriously starting to wonder if a local Chebbie dealership was out of business until they put up "we're open!" signs. I kid you not, I saw a lot more cars at the Buc-ees in Madisonville, TX, a couple of weeks ago than they've had on their lot over the last several months. It's not the biggest dealership around, but there couldn't have been more than 30 cars on their lot at its lowest ebb. It looked like a high school parking lot at 5pm.
 

I know several people who've been looking for used cars recently, and they're going for insane prices. I can't imagine that dealers are willing to drop their drawers on a car when they know they're dang near impossible to replace...

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Local Ford Dealer down to about 10 new vehicles in stock (normal 150-200) but has about 45 used vehicles in stock. Even though more plants are back up and running, it's going to take some time for those vehicles in the pipeline to arrive at dealerships. As such, August could be worse than July and I don't expect inventory to start getting better until September. The one variable that will help is the vehicles sitting in storage that get their missing microchips installed so those vehicles can finally get shipped to Dealers. 

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18 hours ago, Anthony said:

 

I imagine most every manufacturer's ATP is way up. Nobody is really putting deep discounts on their vehicles right now, they don't have to.

They will if they want to sell a 2020 left over, like the Corsair I am currently looking at...the dealer did a decent price but, lets face it, if I order a 2021 (or 2022)...I can get more "offers"...right now, there are zero offers on the left over 2020 Corsair...odd indeed. Of course, my Lincoln dealer only has four new Lincolns on the lot, including the aforementioned Corsair I was eyeballing...

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Is completely absurd that a fire in one chip plant in Asia, cut by half the production of Ford Motor Company. Ford needs to look at other supplier for chips and for other parts. This is ridiculous. Almost the entire car industry affected by one incident in one plant?   I can’t understand it… 

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20 hours ago, akirby said:

Completely expected.  I guess you missed the Ford supplier factory fire.  It just came back online.

Wall Street was shocked, shocked! yesterday and Ford stock was down something like 5%. Good buying opportunity, and there haven't been too many of those in the last few months.

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This disaster is a good opportunity to learn something: don’t put all your eggs in the same basket. The same problem is occurring with the hard top of the new Bronco. The supplier selected by Ford to produce it can’t do it. And that is a mistake Ford can’t afford. Why one only supplier? Why not two or 3 that can compete between them and secure the production?  Ford can’t produce the hard top Bronco because the unique supplier is not capable to do it.  Who is in charge in the production department? Who is the responsable of chooses this supplier?    I can’t understand…

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6 minutes ago, falconlover 1 said:

This disaster is a good opportunity to learn something: don’t put all your eggs in the same basket. The same problem is occurring with the hard top of the new Bronco. The supplier selected by Ford to produce it can’t do it. And that is a mistake Ford can’t afford. Why one only supplier? Why not two or 3 that can compete between them and secure the production?  Ford can’t produce the hard top Bronco because the unique supplier is not capable to do it.  Who is in charge in the production department? Who is the responsable of chooses this supplier?    I can’t understand…

 

Because the per unit cost is higher if you have multiple suppliers.  Why? Because you have to have multiple sets of tooling, which has to be amortized over the entire production run.  If the production run is split between 2 suppliers the cost of tooling per unit doubles, triples if it is split over 3 suppliers.  Every part that is created by an OEM goes through a make/buy analysis where the part is put out for bid from various suppliers and those costs are compared to the cost of producing it in house.  Every supplier is going to bid the cost assuming they get the entire production run.  So if Ford said we want 50,000 units, they would bid the part based on a run of 50,000.  The winning supplier usually has a cost advantage going into subsequent rounds for extended supply because they already have the tooling and it was already amortized on the first run.  The only parts that are not single source are commodity parts that are routinely produced by several manufacturers that supply multiple OEM's. 

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8 minutes ago, Flying68 said:

 

Because the per unit cost is higher if you have multiple suppliers.  Why? Because you have to have multiple sets of tooling, which has to be amortized over the entire production run.  If the production run is split between 2 suppliers the cost of tooling per unit doubles, triples if it is split over 3 suppliers.  Every part that is created by an OEM goes through a make/buy analysis where the part is put out for bid from various suppliers and those costs are compared to the cost of producing it in house.  Every supplier is going to bid the cost assuming they get the entire production run.  So if Ford said we want 50,000 units, they would bid the part based on a run of 50,000.  The winning supplier usually has a cost advantage going into subsequent rounds for extended supply because they already have the tooling and it was already amortized on the first run.  The only parts that are not single source are commodity parts that are routinely produced by several manufacturers that supply multiple OEM's. 


 

ummm. Good explanation . But the supplier designed can’t do the work assigned. And that cause Ford can’t produce the more desired product in 20 years: the Bronco.  Is that good? I thing is a big mistake to have one supplier for some parts. I know the Bronco customers can pay a little more for their trucks if the hard tops come from two supplier with higher cost.  

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2 hours ago, falconlover 1 said:


 

ummm. Good explanation . But the supplier designed can’t do the work assigned. And that cause Ford can’t produce the more desired product in 20 years: the Bronco.  Is that good? I thing is a big mistake to have one supplier for some parts. I know the Bronco customers can pay a little more for their trucks if the hard tops come from two supplier with higher cost.  

Every indication was that the pre-production parts were fine, so would have it done any good to have 2 suppliers, maybe, but both may have had issues going into full production.  People always say they would pay more for better quality, but usually that is only after the cheap one they bought broke without doing the job.  Harbor Freight wouldn't exist if people weren't willing to sacrifice quality for less expense.

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Maybe Ford could ask Hyundai or Honda to produce the Bronco, the Mach E and the Explorer… if Ford can’t do it, maybe other automakers can. ?

 

Is incredible…. When Ford have a winning line up of products, can’t produce them!   Is a horrible situation… 

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21 minutes ago, falconlover 1 said:

Maybe Ford could ask Hyundai or Honda to produce the Bronco, the Mach E and the Explorer… if Ford can’t do it, maybe other automakers can. ?

 

Is incredible…. When Ford have a winning line up of products, can’t produce them!   Is a horrible situation… 

 

Okay... enough already! As if Ford is the ONLY OEM to ever, ever have quality or manufacturing issues. 

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51 minutes ago, ice-capades said:

 

Okay... enough already! As if Ford is the ONLY OEM to ever, ever have quality or manufacturing issues. 


 

I don’t remember (I am 57 years old) that an automaker cut the production by half because problems with suppliers.  Do you? 

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31 minutes ago, Oacjay98 said:

EXACTLY! Ford will learn from this recover and move the fuck on! We don’t need no damn Korean or Japanese company to build our vehicles! 


 

Hyundai is producing their products without problems, the same can say about Toyota, Honda and Subaru….  If Ford can design a winning products like the Mach E, the Bronco, Bronco Sport and Maverick, but is unable to produce it, maybe Ford needs to commission another automaker to produce what it can’t produce…. Or maybe the Ford CEO needs to fire someone at the production department. Both solutions are OK. 

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53 minutes ago, Oacjay98 said:

EXACTLY! Ford will learn from this recover and move the fuck on! We don’t need no damn Korean or Japanese company to build our vehicles! 

 

Ford has proven that its production operations have a habit of turning new product launches into epic disasters, over and over.

 

If Korean and Japanese automakers aren't appropriate, maybe Ford can use contract manufacturers based in Canada or Europe like Magna or Valmet Automotive.

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25 minutes ago, falconlover 1 said:


 

Hyundai is producing their products without problems, the same can say about Toyota, Honda and Subaru….  If Ford can design a winning products like the Mach E, the Bronco, Bronco Sport and Maverick, but is unable to produce it, maybe Ford needs to commission another automaker to produce what it can’t produce…. Or maybe the Ford CEO needs to fire someone at the production department. Both solutions are OK. 

 

Ford is becoming the Detroit Lions......snake bit/cursed. Report out now that train derailed in Midwest full of new F150's. Something like 43 auto carriers all mangled up. Ford just can't catch a break. Also now watch quarterback Matthew Stafford win a Super Bowl now that he has left Detroit. 

 

Webastco builds tops for Wrangler for years and then forgets how to build them for Ford. Ford is the Rodney Dangerfield of auto companies. 

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32 minutes ago, falconlover 1 said:


 

Hyundai is producing their products without problems, the same can say about Toyota, Honda and Subaru….  If Ford can design a winning products like the Mach E, the Bronco, Bronco Sport and Maverick, but is unable to produce it, maybe Ford needs to commission another automaker to produce what it can’t produce…. Or maybe the Ford CEO needs to fire someone at the production department. Both solutions are OK. 


Ford does plenty of stupid things, but these really are extraordinary times. The manufactures that you mentioned may be producing more vehicles than Ford at this time, but they are far from normal production levels.  All of the different vehicle manufacturers dealerships around me have low inventory. Specifically, the Toyota lot doesn’t look much better than our Ford lots.  
 

If it were normal times it wouldn’t have taken six months to find a Sony PlayStation to buy. These chips are in everything, and pretty much everyone has been affects.  It didn’t help that one of Fords main chip suppliers had a fire, which was a double whammy.  

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