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Ford CEO Jim Farley Indirectly Says Ford Escape Facing Cancellation


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Commodity products have little to no margin for profit.  Profit is purely off of how cheaply you can make the minimum acceptable product.  Buyers are brand agnostic on commodity products.  Ford will move that class of vehicle (small to midsize cuv) to EV's where there is more room right now for product differentiation.  The ICE cross-over segment will have to be designed for particular lifestyles in order to break out of being a commodity item.

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“The first step is you cannot ask everyone to do everything,” Ford CEO Jim Farley said while speaking at the Bernstein Strategic Decisions Conference. “You have to say: Blue team, be the cash cow. You heard it in the video. Our job is to fund the future. And we’re going to have passion brands; we’re not going to have commodity products like Edges and Escapes. Mustangs and Broncos…good stuff.”

 

Personally wouldn't read anything more into this than that the ICE team (Ford Blue) will not be building new Escapes.  ICE will be reserved for "passion brands" like Mustang and Bronco.  Others like Edge and Escape will be replaced by EV (whether those brands live on in some form, they haven't officially said.  Which really isn't anything new, since we know that Farley plans to transition over to EVs.  Don't really see a reason why Escape can't live on as BEV only for next gen.

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I wondered over at GMI if part of it has to do with Bronco Sport being in the same class as Escape.  Granted the 2 different styles probably bring in different customers but is it worth it to have 2 very different styled vehicles in the same class?  I think it works the way it is but maybe not.

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40 minutes ago, Andrew L said:

I wondered over at GMI if part of it has to do with Bronco Sport being in the same class as Escape.  Granted the 2 different styles probably bring in different customers but is it worth it to have 2 very different styled vehicles in the same class?  I think it works the way it is but maybe not.


It would be if Escape was bringing in higher profit margins.  Escape is larger and appeals to a different demographic but competes head on with high volume sellers like RAV4 and CRV.

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So here’s my thought - I get the whole icons and non-commodity idea.

 

but why can’t they elevate the Escape product to a higher level to where it stands out above the crowd and thus isn’t a commodity?

the answer IMO, can’t be “slap Bronco or Mustang on every product” - at some point you dilute those brands and make them commodities by doing that too excessively.

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32 minutes ago, rmc523 said:

So here’s my thought - I get the whole icons and non-commodity idea.

 

but why can’t they elevate the Escape product to a higher level to where it stands out above the crowd and thus isn’t a commodity?

the answer IMO, can’t be “slap Bronco or Mustang on every product” - at some point you dilute those brands and make them commodities by doing that too excessively.

 

I guess Farley wants to turn Ford into a Jeep and Tesla copy brand in some respects. Big risk IMO when you consider the Escape and Edge nameplates have been big part of Ford brand for last 20 years or so. And looks like Corsair will end up like Escape and Edge. Any replacements may get all new names which makes no sense. Ford has spent a lot of time and money building those nameplates.

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40 minutes ago, FordBuyer said:

 

I guess Farley wants to turn Ford into a Jeep and Tesla copy brand in some respects. Big risk IMO when you consider the Escape and Edge nameplates have been big part of Ford brand for last 20 years or so. And looks like Corsair will end up like Escape and Edge. Any replacements may get all new names which makes no sense. Ford has spent a lot of time and money building those nameplates.


Does Jeep or Tesla have a Maverick, Mustang, F150, Super Duty or commercial van?   Your opinions are so narrow minded and completely out of touch with reality.

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1 hour ago, rmc523 said:

So here’s my thought - I get the whole icons and non-commodity idea.

 

but why can’t they elevate the Escape product to a higher level to where it stands out above the crowd and thus isn’t a commodity?

the answer IMO, can’t be “slap Bronco or Mustang on every product” - at some point you dilute those brands and make them commodities by doing that too excessively.

If they were going to go that route, they'd have to give the escape far more expressive styling to stand out. I could also see them focusing on making it a really good street performance crossover, kinda like a baby mach-e. Would allow them to make the escape more unique, without stepping on the toes of the off-road oriented bronco sport. 

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1 hour ago, rmc523 said:

So here’s my thought - I get the whole icons and non-commodity idea.

 

but why can’t they elevate the Escape product to a higher level to where it stands out above the crowd and thus isn’t a commodity?

the answer IMO, can’t be “slap Bronco or Mustang on every product” - at some point you dilute those brands and make them commodities by doing that too excessively.


Ok, so how do you do that?  They tried it with titanium trim levels on cars and crossovers - didn’t work like it does on F series.  Give Bronco Sport the hybrid drivetrain and make a longer max version with more cargo and rear seat room.  Not sure what else you could do in that segment.

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1 hour ago, rmc523 said:

So here’s my thought - I get the whole icons and non-commodity idea.

 

but why can’t they elevate the Escape product to a higher level to where it stands out above the crowd and thus isn’t a commodity?

the answer IMO, can’t be “slap Bronco or Mustang on every product” - at some point you dilute those brands and make them commodities by doing that too excessively.

 

I agree with your sentiment - Ford has a good product with brand equity in Escape, but allowed the finance group to cost cut the current gen (particularly the interior) to mediocrity. Remember when Mulally said that every product would be best in its segment? The Escape fails that metric. It has very good bones - the hybrid and plug in models are good/very good from an engineering stand point, but don't "stand out above the crowd" as you wrote.

At some point, Ford will run out of niches to fill, and they will have to design, build, and sell a competitive product in a competitive segment. I wish they would not 'cut bait' here, and elevate their game on Escape - which agrees with what you wrote.

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19 minutes ago, DeluxeStang said:

If they were going to go that route, they'd have to give the escape far more expressive styling to stand out. I could also see them focusing on making it a really good street performance crossover, kinda like a baby mach-e. Would allow them to make the escape more unique, without stepping on the toes of the off-road oriented bronco sport. 

 

In Europe Ford makes the Escape ST, but for some reason not here. Ford could do a lot more dith the Escape if it was motivated enough. Time will tell, but Ford seems to barely me to mention the Escspe lately which does not bode well. However, Ford should be showing the 2023 Escape soon to get get a better idea. 

 

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20 minutes ago, akirby said:


Ok, so how do you do that?  They tried it with titanium trim levels on cars and crossovers - didn’t work like it does on F series.  

 

As DeluxeStang wrote: 

Quote

If they were going to go that route, they'd have to give the escape far more expressive styling to stand out.

 

The current Escape simply cannot represent Ford's best effort in styling, can it? I hope not. As I wrote above, it has good bones, but Ford seems to have phoned in the styling and the interior design. It certainly reeks of cost cutting inside. Jay Mays once said it doesn't cost any more to design a good looking vehicle than a poorly styled vehicle. Ford just simply tried to design this product to the lowest common denominator and it shows. I have hopes for the refresh - I intend to buy a plug in!

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21 minutes ago, Harley Lover said:

 

I agree with your sentiment - Ford has a good product with brand equity in Escape, but allowed the finance group to cost cut the current gen (particularly the interior) to mediocrity. Remember when Mulally said that every product would be best in its segment? The Escape fails that metric. It has very good bones - the hybrid and plug in models are good/very good from an engineering stand point, but don't "stand out above the crowd" as you wrote.

At some point, Ford will run out of niches to fill, and they will have to design, build, and sell a competitive product in a competitive segment. I wish they would not 'cut bait' here, and elevate their game on Escape - which agrees with what you wrote.

 

Probably my biggest problem with Ford over the years is how quickly the cut and run away from nameplates. Too many to enumerate and more than most. 

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27 minutes ago, Harley Lover said:

 

As DeluxeStang wrote: 

 

The current Escape simply cannot represent Ford's best effort in styling, can it? I hope not. As I wrote above, it has good bones, but Ford seems to have phoned in the styling and the interior design. It certainly reeks of cost cutting inside. Jay Mays once said it doesn't cost any more to design a good looking vehicle than a poorly styled vehicle. Ford just simply tried to design this product to the lowest common denominator and it shows. I have hopes for the refresh - I intend to buy a plug in!


Well it has to be more than just “Expressive Styling”.  Good looks and nice features only go so far.  You need to invoke emotion with buyers and be able to support higher end options and accessories like Bronco, Bronco Sport, Maverick and Trucks.

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51 minutes ago, akirby said:


Ok, so how do you do that?  They tried it with titanium trim levels on cars and crossovers - didn’t work like it does on F series.  Give Bronco Sport the hybrid drivetrain and make a longer max version with more cargo and rear seat room.  Not sure what else you could do in that segment.

 

Focus on quality, smart design, add an ST-Line and ST model.  I’d also argue that Ford’s attempts at Titanium/Platinum models on cars/crossovers have also been seen through by customers, in that they were adding them in the later parts of the lifecycle where things weren’t changed enough (Fusion), or the interiors fall short of the competition making it hard to justify purchasing it.

 

27 minutes ago, akirby said:


Well it has to be more than just “Expressive Styling”.  Good looks and nice features only go so far.  You need to invoke emotion with buyers and be able to support higher end options and accessories like Bronco, Bronco Sport, Maverick and Trucks.


i don’t think I’d say Maverick “invokes emotion”, but rather is a very well executed product, and this is getting the attention it deserves.  That’s something the Escape is not because rather than focusing on features, they keep decontenting and playing to the lowest price, while the competition is much better.

Ford can’t continually exit every segment because there’s too much competition.

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It’s clear to me that Farley talked about Ford Blue building cash coaster to pay for the future -BEVs. As part of that, he referred to Edge and Escape and Edge disparagingly as commodity vehicles, so now they’re seen as lower level profit earners like Fusion and probably need to be displaced to make product space for say Mustang Mach E and Bronco Sport  which probably better profit earners.

 

Further proof that Ford wants to increase the profit on vehicles that Ford Blue sells in compact and mid size segments, this doesn’t even get to what names Ford has on new BEVs.

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34 minutes ago, rmc523 said:

 

Focus on quality, smart design, add an ST-Line and ST model.  I’d also argue that Ford’s attempts at Titanium/Platinum models on cars/crossovers have also been seen through by customers, in that they were adding them in the later parts of the lifecycle where things weren’t changed enough (Fusion), or the interiors fall short of the competition making it hard to justify purchasing it.

 


i don’t think I’d say Maverick “invokes emotion”, but rather is a very well executed product, and this is getting the attention it deserves.  That’s something the Escape is not because rather than focusing on features, they keep decontenting and playing to the lowest price, while the competition is much better.

Ford can’t continually exit every segment because there’s too much competition.

 

I agree Ford did a great job on Maverick, and frankly made it a category killer. Why can't Ford do the same for Escape? Does anyone in this conversation believe that Ford really tried with Escape in the same manner they tried with Maverick? No. Way.

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39 minutes ago, rmc523 said:

 

Focus on quality, smart design, add an ST-Line and ST model.  I’d also argue that Ford’s attempts at Titanium/Platinum models on cars/crossovers have also been seen through by customers, in that they were adding them in the later parts of the lifecycle where things weren’t changed enough (Fusion), or the interiors fall short of the competition making it hard to justify purchasing it.


Nope, the Titanium Fusion arrived with the 2013 model debut on CD4.  I know - I bought one.  Same for the 2014 Escape which also moved to the Euro Kumars platform a year earlier.  They were built in from day one of the new platforms.  They were just seen as too expensive for a commodity vehicle where price was the major selling point.  Fusion interior was excellent and not subpar when it debuted.  Escape was debatable.  Bottom line is not enough people were willing to pay a premium in that segment.

 

 

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44 minutes ago, rmc523 said:

i don’t think I’d say Maverick “invokes emotion”, but rather is a very well executed product, and this is getting the attention it deserves.  That’s something the Escape is not because rather than focusing on features, they keep decontenting and playing to the lowest price, while the competition is much better.


You obviously haven’t been following Maverick forums.  There are tons of customizations with wheels, suspension lifts, tonneau covers, bed storage, tents, etc etc.  Majority of conquests came from Civic.   Same with Bronco Sport.  It’s a completely different demographic than an average car buyer.

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3 hours ago, FordBuyer said:

Ford has spent a lot of time and money building those nameplates.

 

You are correct FordBuyer, but neither nameplate (Edge or Escape) currently has a great reputation. Both models get lost in the shuffle among the scores of competing models in their respective segments.

 

 

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My sister has a 2014 Escape Titanium.  It is a good vehicle, especially with the 2.0 ecoboost.  It is also worse in every respect in terms of styling when compared to the 1st gen Escape sport 4wd that she had.  I think the best looking one was the 2nd gen.  She is getting a Bronco, whenever it comes in.  The CRV and the Rav4 have that segment covered and dominated.  Bronco Sport brings something different to the table, the Escape doesn't.

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