Ford October 2006 Sales Figures

[robertlane]

How about some commentary on Chrysler's sales:

 

Chrysler Oct. Sales

[kyle]

Hmm...have to say I missed that at first too. Interesting to see that the Fusion will exceed their projections from last year of 130,000 total this year. How quickly some people forget.

 

As for flexing ANOTHER plant to build Fusions, what would be the point? As it appears now, volume at the Hermosillo point is around capacity. Why over-produce them and end up having to incentivize the heck out of them or dump the remainder in fleets for the sake of "prettier" sales numbers? This is precisely what Ford DOESN'T need to do and it's EXACTLY what led to the Taurus's demise.

 

 

I agree.....short term gain which they clearly are do not need-although it would be good news for all of 6 months until they slap a $4k rebate on the hood.

 

Besides the camry you are probably never going to see a mega volume car produced in multiple plants..it is just way to hard to sustain.

 

Too bad they are not hitting the target with the milan....that is not the trend that anyone who wants mercury to survive to see.

 

I too see very little national advertising from ford. Some of that may be due to the high inventory of dealer's and their marketing efforts are given (co-op) to the dealer's who push the deal before the product-not that I would have a problem with that if I was sitting on $5million in inventory

[old_fairmont_wagon]

Come on people, we all know why the Fusion isn't selling 15K a month...

 

<SARCASM>

They don't have a freaking V8 available for it! IT should have a 500 hp V8 with Rally quality AWD and tires with so much grip that the concrete below the vehicle gives way before the vehicle slides!

</SARCASM>

 

 

My main comment was that I remember the Milan have a VERY sluggish start. Though, now that the MkZ is selling in the same room with a Milan, why would you buy the Milan when a MkZ is available for a bit more with a much better engine and a nicer interior. Me feeling is that, for however much the MkZ exceeds its projections, its likely that the Milan will fail to meet its projections. The thing that should help the Milan is the availability of the i4 value leader, but, anyone shopping in that price range may not be going to a L/M dealership in the first place. So, that may be a falicy in and of itself. It would be interesting to see the spicific mix that Mercury is managing to move off the lots and which models have the highest times sitting on lots before they move. The other obstacle may be that L/M dealerships are not stocking the cheaper models and are instead loading up on the higher end ones.

[Michael Reynolds]

Alright, I give....I give.....

 

I just hope that these numbers continue to stay consistent, as it would be nice to see Ford get every last penny out of these vehicles that they can.

 

I am starting to notice quite a few of them on the road, non-rental car versions at that.

[RichardJensen]

Me feeling is that, for however much the MkZ exceeds its projections, its likely that the Milan will fail to meet its projections.

Which is probably why you'd flex the two, and build them at the same plant.

 

It's also worth observing that at varying times, in the $25k price range (give or take a grand or so), the Five Hundred or Fusion will present the better deal. This could cause volume to swing one way or the other.

 

Next year, for around $25k you'll be able to buy a base 265hp Five Hundred with AWD, or you can buy a 221hp Fusion with AWD, leather, dual zone EATC, and a few other goodies. We might see a volume shift toward the Five Hundred next year.

 

Bottom line is that the two vehicles in tandem will steal sales from each other (across a certain price range), but combined, they will bring in more retail volume than either product would separately.

 

You can say the same thing about the Explorer/Expedition, Edge/Escape/Freestyle, etc.

 

In the past, Ford was probably hesitant to build a too big C/D entry in part to protect the two plant's worth of Taurus volume, but since they are moving to a more market driven approach (a stance which was being tiptoed towards before Fields came along), this idea of being willing to cannibalize some sales to expand the appeal of your lineup makes sense.

[DCK]

Hmm...have to say I missed that at first too. Interesting to see that the Fusion will exceed their projections from last year of 130,000 total this year. How quickly some people forget.

 

As for flexing ANOTHER plant to build Fusions, what would be the point? As it appears now, volume at the Hermosillo point is around capacity. Why over-produce them and end up having to incentivize the heck out of them or dump the remainder in fleets for the sake of "prettier" sales numbers? This is precisely what Ford DOESN'T need to do and it's EXACTLY what led to the Taurus's demise.

I thought projections were from 130k -180k?

[RichardJensen]

I thought projections were from 130k -180k?

Highest number I ever saw was 150k.

 

Pipas said today that sales of 140-150k would be 10-20k units in excess of projected volume.

[old_fairmont_wagon]

Having finally looked at the number for L/M for October, it looks to me, when compared to a year ago, that they're getting similar total sales volume, and that the Mariner is taking volume away from the Sedans that it shares a price range with. Milan volume today matches (roughly) Sable+Milan volume from a year ago. The Montego is faultering and the GM is just floating along about where it always does.

 

I'd still be interested in data on what the dealers are ordering, and what mix stays on the lot longer. While I do see some ads for the Fusion (and some bold moves ads that include it) the only Mercury ad that I see anymore is the full line ad with Jill standing in front of a LM dealership with the full mercury line. They should do one Jill ad with her pushing the AWD Milan, emphasizing the safety aspects of AWD and the standard full set of airbags. If they ran that during some heavy female demographic programming, such as Desperate Housewives and Grey's anatomy, and other shows like those, they'd more than justify the cost of such an ad.

 

Overall, it doesn't look like FoMoCo is managing to increase foot traffic in LM dealerships in any tangible way, judging by overall sales of the two. Yes, the Zephyr/MkZ is doing well, but, that's about the only shinning beacon of the group.

 

If they weren't making so much profit per unit of the GM, they would have dropped it a long time ago at its volume level. The GM is taking sales away from the Montego, that much is fairly obvious I think. Yes, there are a few that might not voluntarily switch from one to another, but, I suggest to you that many of those getting the GM would probably have gotten the Montego if the GM wasn't available. The GM is likely selling for less than a Montego, and thusly, is getting sales through value alone. In fact, I think that, if you want the L/M dealership experience, the GM is the second cheapest vehicle that you can purchase to get it, after the 4 cylinder Milan.

 

As for the Fusion, I don't know what the magic bullet will be there. It may be that the fire sale on the Taurus is taking some sales away from the Fusion, and that once the Taurus is completely gone from inventory, you'll see more Fusion sales. But that's about it as to guesses as to why the Fusion is not outdoing its sales projections for the year.

 

I wonder if they are going to eventually give it the D35, or an upgraded D30? It could use a little more in the V6, even if that accounts for only 10% of the volume. Maybe if the v6 was better, it might account for 20% of volume. Who knows?

 

The freestlye is just sucking wind though. That thing must be invisible in the market. Yes, I see about half a dozen of them a day down here now, its remarkable that it sells as disappointingly as it does. I just got through crawling all over a brand new Honda Pilot EX that one of my co-workers just got. Compared to the Freestyle that I got in at a local dealer a few months ago, I can say that the interior of the Freestlye was no more utilitarian, was just as functional, was bigger in the third row, and looked as well put together. The engine in the pilot may be bigger, and more powerful, but its 18/24 mpg rating isn't better, and may be worse than what some are reportedly getting. The Pilot also uses VCA to get that mileage now (3 or c cylinders fire, depending). So, compared to what is supposed to be the benchmark for that segment, I don't see the Freestyle being defficient, except in power, and the performance numbers that are actually recorded put it within a few percent of the leaders anyway. I hope the upcoming refresh includes more advertising.

[Edgey]

I wonder what accounts for the weaker than expected demand for the Milan? Of all the CD3 cars, I think the Milan is the most appealing. The Fusion has a larger 'flash in the pan' personality than cars like the Milan and Zephyr so I expect demand and interest in the Fusion to fall off after the newness factors wears off. The Fusion, without rebates, isn't such a great value against cars that are offering special financing and rebates.

[RichardJensen]

They should do one Jill ad with her pushing the AWD Milan, emphasizing the safety aspects of AWD and the standard full set of airbags.

 

But that's about it as to guesses as to why the Fusion is not outdoing its sales projections for the year.

1) Ford has such a commercial in the can, you probably don't watch the right shows, though:

http://www.thefusionsource.com/index.php?c...p13_sectionid=7

 

2) The Fusion IS outdoing its sales projections for the year.

[marc-o]

Year-ago sales were in the dumps coming off the employee incentive highs and resulting inventory drought. Comparing year-ago sales #'s can be misleading (last Oct was bad for just about everyone, Big 3 especially).

 

That said, October is starting to be a good time to look at year-to-date numbers, and you know what, those aren't so bad. There's a managed slowdown in sales, pretty good considering projections, predictions, and all else with old/new models, incentives, fleet sales.

 

October (or any other month) doesn't make the year. For *anyone*.

[Bluecon]

How about some commentary on Chrysler's sales:

 

Chrysler Oct. Sales

Why would you want to discuss Chrysler sales on a Ford forum?

[Jazzhead]

The way to increase Fusion sales is to build them here as well as in Mexico. A large percentage of customers for any domestic brand are consumers who consciously choose to buy American. How can Ford compete with this segment of the customer base when its main competition (Malibu, Sebring, Aura, G6, Maxima, Accord, Camry) are ALL built/assembled here?

 

Put the Fusion in Atlanta, or Wixom. It's the smart thing to do. And it would be a helluva publicity coup. Ford invests in America Hey, that schtick works for Toyota!

Edited November 2, 2006 by Jazzhead

[Jazzhead]

Keep on preachin', Pioneer, because the case for building the Fusion here is based on the head as well as the heart.

 

Why is Ford, a domestic car company, giving up on the low hanging fruit? The customers that WANT to buy American, the ones for whom it's important, for whom it's a statement of solidarity? By all means keep the plant in Hermasillo humming - but build the Company's mainstream sedan here, too, because the competition sure is competing like mad for the community-conscious customer!

[RichardJensen]

The customers that WANT to buy American, the ones for whom it's important, for whom it's a statement of solidarity?

Well, they sure ain't buyin' Five Hundreds.

[ZanatWork]

True 'nuff...where are the "buy American" fans where the D3s are concerned?

 

IT couldn't be...omigoodness...over-hyped rhetoric, could it?!??

[630land]

The "buy American' fans usually buy used Tauruses, etc, so they can 'save bucks'. But then they expect others to buy brand new.

 

Anyway, the Expedition is rebounding, is it cuz gas went back to 2 bucks? If they can get more of those sold, it will make up for the loss of the 'penny a car profit' Taurus.

[Jazzhead]

Boy, now there's a couple of illogical responses. The issue is sales of the Fusion, not the Five Hundred. The problems that the Five Hundred have found in the marketplace have to do with a few correctible issues and Ford's lack of advertising for the vehicle. The Fusion is a winning design and, like the Malibu, Sebring, Camry, Altima and Accord, is its manufacturer's high-volume, mainstream sedan. But it's the only one in its class that isn't built/assembled here.

 

And yes, I have bought Tauruses before. Two of 'em. Brand new.

[silvrsvt]

The Fusion is a winning design and, like the Malibu, Sebring, Camry, Altima and Accord, is its manufacturer's high-volume, mainstream sedan. But it's the only one in its class that isn't built/assembled here.

 

 

Since its not made in the USA, thats the reason its not sell as well as it should? Hell if Ford can sell 120-130K a year with little to no incentives on them, thats fine with me

[Jazzhead]

My point is simply that, while the Fusion attracts plenty of buyers on its own merits, it could attract even more if it matched what all of its direct competitors can boast - built in USA.

 

Not all consumers care about buying American - that's fine, everybody decides individually how to live with themselves and their choices - but many do. And that segment of the auto-buying public ought to be low hanging fruit for FoMoCo. So why not get a U.S. plant building 'em too, and be able to compete for those buyers?

[akirby]

My point is simply that, while the Fusion attracts plenty of buyers on its own merits, it could attract even more if it matched what all of its direct competitors can boast - built in USA.

 

Not all consumers care about buying American - that's fine, everybody decides individually how to live with themselves and their choices - but many do. And that segment of the auto-buying public ought to be low hanging fruit for FoMoCo. So why not get a U.S. plant building 'em too, and be able to compete for those buyers?

 

They'd probably sell, oh let's see...............being generous............MAYBE 10 more cars per month?

 

Seriously - the vast majority of car buyers don't know and don't care where the car was made. They also don't care about HP or how many gears it has.

 

Why car enthusiasts think that the average car buyer thinks the same way they do is beyond me. Go ask 100 random people at a mall about the Fusion and Milan and I bet 98 of them don't know they're the same car underneath. And the other 2 probably know but don't care.

[NickF1011]

My point is simply that, while the Fusion attracts plenty of buyers on its own merits, it could attract even more if it matched what all of its direct competitors can boast - built in USA.

 

Yup...adding Fusion assembly to Atlanta would attract a ton more customers: Hertz, Dollar, Budget....

[Roadrunner]

Edgey:

I wonder what accounts for the weaker than expected demand for the Milan? Of all the CD3 cars, I think the Milan is the most appealing.

 

Whereas the Fusion has a polarizing design, the Milan has a polarizing brand image: Mercury is for women.

[Michael Reynolds]

Yup...adding Fusion assembly to Atlanta would attract a ton more customers: Hertz, Dollar, Budget....

 

LMAO....cause it's true.

 

That buy American mentallity should've been applied to Wal-Mart a looong time ago. It also should've been applied to companies such as Dell, HP, and Microsoft. Companies that jumped the best shore wave and sent tons of support jobs overseas.

 

I'm just saying.

Edited November 2, 2006 by Michael Reynolds

[Jazzhead]

Obsfuscation. Walmart, Dell, et al aren't the point. I'll say it again - ALL of the Fusion's direct competition are built/assembled here. The Fusion, as good as it is, lacks an important selling point for a significant portion of Ford's traditional customer base. I've had friends justify their Accord purchases by pointing to its assembly in Marysville, Ohio. Believe me, I want to buy a new Ford Fusion. Please, FoMoCo, give me a reason to do so!

Edited November 2, 2006 by Jazzhead