Ford will only sell Mustang, Focus Active in N.A.

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DUMB MOVE! Once gas prices go back up and people are tired of paying big $$$ for gas with their clumsy SUV and pickups, people will be ready to go back to a car. AND FORD WILL NOT BE IN POSITION TO SELL ANY!
 
I can't believe they'd only sell 2 cars and the rest all SUVs/Trucks. Time will tell if they follow through with this.
 
If I didn’t know any better, this sounds like an act of desperation from a company that is in deep trouble.

I hope I’m wrong.
 
When I was in high school 30 years ago, all my friends who had cars wanted trucks and all my friends who had trucks wanted cars. The market switches as the fence always looks greener on the other side. Right now the market is SUV and pickup heavy, but it will change back. Especially when gas hits $4+ a gallon.
 
Originally Posted By: zfasts03
DUMB MOVE! Once gas prices go back up and people are tired of paying big $$$ for gas with their clumsy SUV and pickups, people will be ready to go back to a car.

Um.....No.

What you are failing to acknowledge is that oil prices aren't going to go back to $100/bbl.

The fundamental change in the oil & gas industry is that fracking is now profitable in the mid $55/bbl and producer costs are coming down every day.

When producers can be profitable at low production costs, supply will flood the market and prices will fall.

There is so much supply that the US is now an O&G exporter.

Also acknowledge that WTI is currently at $68/bbl. I would be pleasantly surprised if prices trend appreciably higher over the next 12 months. (O&G worker here)
 
Originally Posted By: Imp4
Originally Posted By: zfasts03
DUMB MOVE! Once gas prices go back up and people are tired of paying big $$$ for gas with their clumsy SUV and pickups, people will be ready to go back to a car.

Um.....No.

What you are failing to acknowledge is that oil prices aren't going to go back to $100/bbl.

The fundamental change in the oil & gas industry is that fracking is now profitable in the mid $55/bbl and producer costs are coming down every day.

When producers can be profitable at low production costs, supply will flood the market and prices will fall.

There is so much supply that the US is now an O&G exporter.

Also acknowledge that WTI is currently at $68/bbl. I would be pleasantly surprised if prices trend appreciably higher over the next 12 months. (O&G worker here)

You're not wrong, but this is not the only factor shaping energy prices, and that can change in the blink of an eye.

If they were eliminating the subcompact entirely around the world I'd say bad move, but they can always revamp it for the US market again. It's gutsy and not sure I would recommend it, but time will tell.
 
Originally Posted By: PimTac
this sounds like an act of desperation from a company that is in deep trouble

Or a company taking a calculated risk that their low volume, unprofitable models aren't worth losing more money on. Especially when the outlook is for additional declining sales within the market segment.
 
I don't like it but it kind of makes sense. The new CUV's are basically cars, get car-like MPG, and are what people want today. Americans have always liked "big" stuff, be it houses, cars, open space, etc. So now that they can get 25-30+ MPG in the CUV many are going that way vs cars.

Hopefully the new platforms are easily switchable if cars come back in style.
 
OMG. How could we have a Glut of Oil?
What about Peak oil? What about running out of oil?
Always a farce. Oil is infinite and that was the best kept secret and lie of the twenith Century.
 
Originally Posted By: Imp4
Originally Posted By: zfasts03
DUMB MOVE! Once gas prices go back up and people are tired of paying big $$$ for gas with their clumsy SUV and pickups, people will be ready to go back to a car.

Um.....No.

What you are failing to acknowledge is that oil prices aren't going to go back to $100/bbl.

The fundamental change in the oil & gas industry is that fracking is now profitable in the mid $55/bbl and producer costs are coming down every day.

When producers can be profitable at low production costs, supply will flood the market and prices will fall.

There is so much supply that the US is now an O&G exporter.

Also acknowledge that WTI is currently at $68/bbl. I would be pleasantly surprised if prices trend appreciably higher over the next 12 months. (O&G worker here)


I'm sure you'll still be willing to back that statement up in another year, after prices have exceeded $100/bbl.. right?

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... having said that, I also agree that Ford is making a monumentally bad decision axing these three sedans. If they do, then they will be 100% losing my business in the future.
 
From a NY Times article yesterday:

Quote:
They said a key goal would be lifting North America’s profit margin to near 10 percent by 2019 or 2020. Last year, Ford North America’s margin was 8 percent, well short of the 10.7 percent that General Motors achieved.


That really tells a big chunk of the story. GM was able to claw it's way back to >10% margins by doing business better. Ford is attempting to do it, in large part, by cutting it's low (or negative) margin products.

GM still sells the Spark, Sonic, Cruze, and Malibu in the States. They didn't need to dump all their car lines to get back to double digit margins.

Fundamentally, whatever GM (and Toyota and Honda) is doing, they're doing it better than Ford. This "fix" doesn't solve that fundamental issue for Ford.

https://www.nytimes.com/2018/04/24/business/ford-hackett.html
 
I agree with Ford.

When I think of a Ford car, I think of a [censored] Escort from years past....

There is nothing special about a "Ford" car, Lincoln has the cars I want, so buy a Lincoln, and save that Ford badge for the Trucks and towing vehicles.

Honda and Toyota have the sedans cornered. The Mustang is like way overproduced....
 
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Originally Posted By: MrHorspwer

GM still sells the Spark, Sonic, Cruze, and Malibu in the States. They didn't need to dump all their car lines to get back to double digit margins.


Hasn't GM hinted that all those + the Impala may be going too?
 
As a long-time Ford loyalist I'm saddened by this. The Fusion is still selling pretty well. Can't believe they won't do even a major refresh of it.

Truly the end of an era.
 
Originally Posted By: Imp4
Originally Posted By: PimTac
this sounds like an act of desperation from a company that is in deep trouble

Or a company taking a calculated risk that their low volume, unprofitable models aren't worth losing more money on. Especially when the outlook is for additional declining sales within the market segment.




The decline in sedan sales has been in progress for quite some time now. Has Ford slowed production during these past several years? Sudden decisions like this smell of panic.

Just the other day the news was that Ford was going to start producing the Focus in China and export to the US. I guess that’s off now as well?

I’m not trying to be argumentative but news like this is a bit of a shock. Yes it would make sense for Ford to pare down their model lineup but this is extreme.
 
Originally Posted By: PimTac
If I didn’t know any better, this sounds like an act of desperation from a company that is in deep trouble.

I hope I’m wrong.


Or, they they could be visionary. I read it as focusing on hybrid technology with the more profitable models. They want to be #1 in hybrid technology. That is going to take some money.
 
This begs the question of why Honda and Toyota can mint money making mid-sized cars in the US and Ford can't?
Drive a Fusion and an Accord and a Camry.
Which of these is noticeably a decade or two behind in powertrain refinement?
For Ford to put all of their eggs in a higher end, higher fuel consuming basket seems very short sighted and also illustrates that management has forgotten the last near-death experience of just a decade ago.
 
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