Ford U.S change philosophy

[cavvy]

Interesting to see Ford in the U.S accept Toyota moving past them into #2 market share position.
More interesting is Ford stating they will not seek to take #2 spot back, they will be concentrating on profitability.
How will this effect the Australian approach, if at all ??

[Chucky]

No more locally made cars?

1)Import 50,000 cars from OS plant that makes 400K units a year.

2)Profit.

[Peter Nightingale]

Originally Posted by Chucky

No more locally made cars?

1)Import 50,000 cars from OS plant that makes 400K units a year.

2)Profit.

They should be maKing a PROFIT , they are not a charity, see they have off loaded JAGUAR and LANDROVER in the last few days, and gradualy shifting their attention downunder from Falcon to smaller cars, eg FOCUS........

[FPV GTHO]

I doubt it'll change the local approach. Theyve known for a while now they need to expand their locally produced range.

[Phase3]

It wont affect Ford Oz in the slightest. Locally, a profitabile Falcon is more important than regaining the No 1 spot.

If numbers were more important Ford would follow holdens lead in rebadging cheap korean made Daewoo's to make up numbers, instead Ford is following the quality over quantity philosophy, as obviously Ford US have as well.

[Falcadore]

Originally Posted by cavvy

Interesting to see Ford in the U.S accept Toyota moving past them into #2 market share position.
More interesting is Ford stating they will not seek to take #2 spot back, they will be concentrating on profitability.
How will this effect the Australian approach, if at all ??

Ford Australia are looking in other directions. Toyota is not really a direct rival, they have more to be concerned about by slipping behind Honda and Mazda in Australian sales falling to fifth position which is imminent. Ford can't rival Holden until the new Falcon is ready, and when it is, it will have to be as much an improvement over the VE Commodore as the BA Falcon was over the VZ Commodore. Away from the Falcadore ranges Holden does not really compete with Ford even though they are in much the same model sectors.

Originally Posted by Phase3

It wont affect Ford Oz in the slightest. Locally, a profitabile Falcon is more important than regaining the No 1 spot.

If numbers were more important Ford would follow holdens lead in rebadging cheap korean made Daewoo's to make up numbers, instead Ford is following the quality over quantity philosophy, as obviously Ford US have as well.

The Daewoo shift has seen sales slide, particularly the Epica which is guttering in its sector. It is Holden who are now looking to follow Ford's lead, as the new Mondeo makes a splash.

Originally Posted by Peter Nightingale

They should be maKing a PROFIT , they are not a charity, see they have off loaded JAGUAR and LANDROVER in the last few days, and gradualy shifting their attention downunder from Falcon to smaller cars, eg FOCUS........

The Focus, while a nice car, sits in one of the most competitive sectors in the market, to hinge sales on this sector is... essentially surrendering a senior position in the market. The Falcon is what distinguishes Ford from the bulk of car makers in Australia, to give that up will make Ford increasingly indistinguishable from the Euro-Korean-Japanese pack, fighting on their turf by their rules. That's a fight they will lose against offers of MP3 compatible free-air Dae-Hy-odas and Honda make grounds with sidesteps into creating new niches and former region partners Mazda continues to thump them at their own game.

[FPV GTHO]

Ford arent looking to dump local Falcon production and replace it totally with the Focus. They'll be hoping for a situation where they can maybe get 3500/month for Falcon, 1500/month Falcon ute, 2000/month Territory and 1500-2000/month for Focus.

Their long term future isnt even hinged around local production, but rather research and development for Ford Global. They already developed the Fiesta derived Ikon for India, and are deep into development for the Ranger/BT-50 replacement. They'll be hoping to take a lead role in Fords global RWD plans as well that should eventually underpin Falcon, Mustang and Crown Victoria.

[SSbaby]

Considering Focus isn't setting the world on fire atm, the decision to build it locally is not a great idea methinks. Btw, I wonder where Ford's (US) profits will come from given they have a bare cupboard?

I know, GM isn't exactly in better shape financially but at least they have a better, fresher product lineup. GM have more new models in the pipeline and their design philosophy has improved since Lutz arrived.

Both Ford and GM just have to look for fresh ideas to do business. Copying Toyota's product strategy might be a good start. Sell less models but concentrate on increasing sales volumes per model. Toyota/Honda can do it will conservative vehicles, why can't Ford?

It's sad that the two giants of the US auto industry are fighting for survival while Toyota looks to steam past both its rivals in terms of sales volumes, on their home turf.

To answer the question, it's really a case of the blind (Ford US) leading the blind (Ford AUS). Whichever way you look at Ford, it's a dying brand in need of resuscitation... GM not much better.

[SSbaby]

Originally Posted by Falcadore

The Daewoo shift has seen sales slide, particularly the Epica which is guttering in its sector. It is Holden who are now looking to follow Ford's lead, as the new Mondeo makes a splash.

You are correct on both count and yes, Mondeo's sales have certainly made a splash... make that tanked! I have seen very few on the road even though its been on sale for a few months. Of the Mondeo's noticed, they just blend in with the crowd, IMHO.

Holden have proven that expensive Euro imports (like Vectra) are a difficult sell especially when the Camry/Auron is by far the better value. If I want a trendy FWD Euro, I'd either go for a cheap VW/Audi/BMW and give the Ford a miss (because I'm a badge snob).

[FPV GTHO]

Originally Posted by SSbaby

Considering Focus isn't setting the world on fire atm, the decision to build it locally is not a great idea methinks.

Well Ford arent simply adding another plant taking on Focus production. We'll be taking over from South Africa when Mk3 production begins in 2011. Considering also how well Toyota flog the Corolla, which is at best in the middle of its segment, it shows how many sales can be made with the right fleet deals.

[SSbaby]

Originally Posted by FPV GTHO

Well Ford arent simply adding another plant taking on Focus production. We'll be taking over from South Africa when Mk3 production begins in 2011. Considering also how well Toyota flog the Corolla, which is at best in the middle of its segment, it shows how many sales can be made with the right fleet deals.

Uuumm, Ford don't have the money to throw around on fleet deals like Toyota do. Neither do Holden. You cannot compare Ford/Holden small car range to Toyota's. Toyota have a stranglehold on that sector. I'd be very brave to remotely suggest that Focus sales will eat into Corolla's. Holden have somewhat of an image problem wrt their Korean sourced small cars IMO.

The Focus is still the wrong product for Australia especially if Ford maintain current sales levels. However, if Ford shift production from SA, what volumes would Ford need to sustain in order to become profitable? Small cars aren't exactly where the profits lie.