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MKS gets the axe....


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So how many MKTs did they sell last month ?

 

Has MKT had a monthly sales total of more than 100 this year ?

Yes, it's usually in the 200-300 range, which is more than the ELR and SS combined.

 

They sold 442 in May.

 

Killing MKS allows them to build more Explorers. Killing MKT has no such advantage.

Edited by sullynd
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Yes, it's usually in the 200-300 range, which is more than the ELR and SS combined.

 

They sold 442 in May.

 

Killing MKS allows them to build more Explorers. Killing MKT has no such advantage.

Actually it does. Killing MKT (and eventually Flex) allows more Edge and MKX production, and right now the way Egde is selling, they need all the extra production they can get.

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Actually it does. Killing MKT (and eventually Flex) allows more Edge and MKX production, and right now the way Egde is selling, they need all the extra production they can get.

 

But MKT and Flex likely have a higher ATP and profit margin than MKX and Edge I would think.

 

I'm not advocating a new MKT and Flex (though I would love to see a gen 2 Flex), just saying that killing them off at this point in order to produce more Edge and MKX doesn't necessarily equal more profit.

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But MKT and Flex likely have a higher ATP and profit margin than MKX and Edge I would think.

 

I'm not advocating a new MKT and Flex (though I would love to see a gen 2 Flex), just saying that killing them off at this point in order to produce more Edge and MKX doesn't necessarily equal more profit.

That may be true. I don't know the margins at all though.

 

That being said, depending on the difference in margin, they could conceivably make up the difference in lost margin with the gained Edge sales, especially considering the better mix of higher ATP trim options. Throw in the inevitable gains the new MKX will likely have over the old one (and IIRC higher MSRP than the old one) they could very well match or improve on profits coming out of Oakville.

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It does if you factor in the savings from getting rid of those vehicles. Building 2 is way easier than building 4 in the same plant.

 

Agreed, but at this point, since they are humming along just fine, are there big cost savings to eliminating two? Sure, it's simpler and cheaper to build 2 instead of 4, but what are the cost savings eliminating 2?

 

I don't know, would be interesting to see the differences.

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Think of all the unique parts that have to be managed at the factory - grilles, fenders, dashes, doors, etc. etc. Not to mention stamping dies, etc.

 

Then throw in order guides, brochures, crash testing, emissions testing, etc.

 

If they could replace Flex and MKT capacity with Edge/MKX I think it would be much more profitable in the long run.

 

Before now they just didn't have enough Edge/MKX demand to justify it.

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Think of all the unique parts that have to be managed at the factory - grilles, fenders, dashes, doors, etc. etc. Not to mention stamping dies, etc.

 

Then throw in order guides, brochures, crash testing, emissions testing, etc.

 

If they could replace Flex and MKT capacity with Edge/MKX I think it would be much more profitable in the long run.

 

Before now they just didn't have enough Edge/MKX demand to justify it.

 

But they don't have to crash test or emission test the Flex/MKT any more. That's done. The stamping dies are done (until they wear out). Yes, you have to manage the unique parts, but that is already set up.

 

Brochures and order guides? All they have to do is change the year and re-print! :)

 

Yeah, going forward, it will be more profitable to drop them two instead of a redesign. With MKX/Edge prices likely approaching that of the MKT/Flex, I'm sure it's only a matter of time before the other two get the ax. Will 2016 be the last model year for them?

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It's not just profit - they may need the extra Edge/MKX production to keep up with foreign demand. That would be worth a lot more than a few flex/mkt sales.

Great point, I forgot about that too

 

 

It's why I keep insisting FRAP will have a 3rd shift added by the time Continental starts production.

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2016 D385 MRD startes 06 July 2015

2016 D385 will begin 2016 MY balance out 04 2016

 

The plant is in no way operating at a level to be able to continue the D385. The D502 is pushing the limits in production and the police versions keep rolling up the total production numbers. Along with the export D502 the plant is unable to find more line space to plug in more units per hour.

 

There is discusion of taking over some parts supplers facilities (which is occuring at present) to help reduce both cost and open up more parts storage square footage.

 

CAP may need a complete revamp in production techniques along with a completely new level of management skills. The union side of the business is being left in the dust of its archic way of preforming it`s business.

 

There are those at CAP that can`t wait for the Lincoln experiment to be nothing more than history.

 

Decker

Edited by Decker
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