Jump to content

Ford CEO Jim Farley Says Fusion Or Focus Didn't Return Due To Cost


Recommended Posts

Basically what he's saying is there's a vibrant market for sedans and hatchbacks, but the costs of Ford cars weren't competitive, which we knew. But that if Ford finds a way to be cost competitive, they could return to those segments, which I believe we'll see in the coming years. 

Link to comment
Share on other sites

7 hours ago, DeluxeStang said:

but the costs of Ford cars weren't competitive, which we knew.

 

Quality of Ford cars wasn't competitive either, which we also knew - and Jimbo acknowledged:

 

Farley said during a recent appearance on the Rapid Response podcast, "Until our company got serious about cost and quality, we really didn't have the rights to compete."

 

 

  • Like 1
Link to comment
Share on other sites

Also, Ford has now accumulated a sizeable debt (actual and paper) from false starts on it electric vehicle programs.

Any thoughts of doubling back to safer /older vehicle sales plans is definitly off the table.


So much of Ford’s financial wounding is of its own doing, it costs a bomb trying to accelerate technology.

The upside is that while those older vehicle are non-starters, I’m curious to know how or if a newer

version of those types of vehicles are possible on CE1 or some modified gasoline-hybrid version 

Edited by jpd80
Link to comment
Share on other sites

4 hours ago, jpd80 said:

Also, Ford has now accumulated a sizeable debt (actual and paper) from false starts on it electric vehicle programs.

Any thoughts of doubling back to safer /older vehicle sales plans is definitly off the table.


So much of Ford’s financial wounding is of its own doing, it costs a bomb trying to accelerate technology.

The upside is that while those older vehicle are non-starters, I’m curious to know how or if a newer

version of those types of vehicles are possible on CE1 or some modified gasoline-hybrid version 

 

I think the issue is just company inertia for almost the past 50 years-

 

Smaller cars in the 1980s where only being built to keep plants busy and for CAFE offsets of larger more profitable products. There was really no thought given to how to make smaller products cheaper to build so they would generate a profit. You can see that with the 2013-2020 Escape-the EU Kuga was too high end for the NA market and there was growth of features to the point that the mid level product line was better equipped outside of leather/wheel size vs the top trim model from 4 years prior. 

 

The real question is how much of the assembly/engineering of the CE1 platform from the assembly standpoint can actually be applied to ICE products. EVs are inherently less complex to assemble because they have less parts. I'm not sure how the new assembly process can help cut back on how much it costs to pay UAW workers to assemble products in the USA at least. 

 

The only way that I can see less expensive products become more profitable for Ford is that they are EVs and the costs of batteries are so cheap and having a smaller battery pack won't hurt expected range or performance

Link to comment
Share on other sites

I think is all to do with return over volume, many corporations use this metric to make their business more efficient. While it is leaving sales on the table, senior management know that the real money lies with going after lifestyle and premium customer sales

 

id fall over laughing if Ford ends up making just as much profit selling batteries to major projects and retail consumers, funny how the future can be different than what we imagine 

Edited by jpd80
  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...