Jump to content

EcoBoost buyers get high mpg; gets higher revenue


Recommended Posts

"...Now, Ford is rushing to put the V-6 version of the motor in new vehicles, such as the F-150 pickup in the United States and the Ford Falcon sedan in Australia. Next year, the company plans to introduce new four-cylinder models here and in Europe. And The Detroit News has learned Ford has developed a 1.0-liter three-cylinder version that could power future versions of the Ford Focus and Fiesta.

 

"It clearly was part of our plan to distinguish us in a very crowded marketplace," said Derrick Kuzak, Ford's global head of product development. "It's doing that very well."

 

EcoBoost is also part of Ford's plan to boost revenue by increasing net pricing -- the amount of money customers pay for its cars and trucks after incentives. Here, too, Kuzak said EcoBoost is hitting on all cylinders.

 

Customers who opt for EcoBoost are paying $5,000 to $10,000 more for their vehicles than those who buy the same products without it. That is one of the drivers behind Ford's $3.8 billion net pricing gain since the start of the year, said analyst Erich Merkle of Autoconomy.com in Grand Rapids..."

 

Detroit News

Link to comment
Share on other sites

  • Replies 87
  • Created
  • Last Reply

Top Posters In This Topic

Customers who opt for EcoBoost are paying $5,000 to $10,000 more for their vehicles than those who buy the same products without it.

Hmmm ... didn't some Ford exec say the delta cost was only $700 a couple of years ago ?

 

Yep, here it is !

 

Okay, the $5-10,000 delta does include a lot of options (AWD, Sync, etc, etc), so it is not apple to apples. Some how I remember being trashed when I called BS on the $700 number !

Link to comment
Share on other sites

You can buy a diesel option for less than $5K from Mercedes and Ford cannot offer a turbocharged gasoline engine option for half that price?

 

Is that right? If so those Lincoln buyers must have money burning a hole in their pocket.

The vehicles that are currently for sale with the EcoBoost option are LOADED TO THE MAX ! If Ford can get folks to buy cars with all that extra equipment just to get the EcoBoost engine, well more power to them (both the company and the customer) !

 

And yes, most Lincoln buyers "have money burning a hole in their pocket" ! You won't see me driving an MKZ. My Milan is just fine, thank you very much !!

Link to comment
Share on other sites

Hmmm ... didn't some Ford exec say the delta cost was only $700 a couple of years ago ?

 

Yep, here it is !

 

Okay, the $5-10,000 delta does include a lot of options (AWD, Sync, etc, etc), so it is not apple to apples. Some how I remember being trashed when I called BS on the $700 number !

 

Yes, and let's hope Ecoboost will not become a $5,000 option when it appears in 4 cylinder form. I remember the $700 figure also when Ecoboost was introduced to the public. If Ford expects to sell a lot of Ecoboost engines, the cost will have to come way down to $700 area. Right now it's an expensive option for those with big bucks and want a lot of power. I initially didn't think of it as a toy for the rich. GM is doing a lot of DI engines on high volume vehicles like the new Equinox, and Ford needs to do same or will lose customers. I believe the new Chevy Cruze gets DI also. If Ford can offer Ecoboost I4 engines on their high volume cars like Focus and Fusion for about a $1,000 option, then Ford will remain best in segment over competition.

Link to comment
Share on other sites

Wow, talk about missing the point...

 

This; "Customers who opt for EcoBoost are paying $5,000 to $10,000 more for their vehicles than those who buy the same products without it."

 

Does not mean this; "ecoboost cost $5000-10,000"

 

One clue; "That is partly because the engines are packaged with other options like all-wheel-drive and premium wheels"

 

In other words, people buying a non-ecoboost car are buying bare bones or limited optioned cars. The people who get the ecoboost are also THE TYPE TO SPEND MORE ON OTHER OPTIONS.

 

Or put another way, buy your ford for $30,000 and decide on a couple options if you think you can afford it.

or,

Buy your ford for $40,000 with the best stereo, best seats, power everything and include the top engine package as well.

 

Is that a little more clear? The ecoboost DOESN'T COST $10,000!! The people who buy an ecoboost are also likely to buy a more fully optioned car! (which translates to higher profit margin for ford)

Link to comment
Share on other sites

...

Does not mean this; "ecoboost cost $5000-10,000"

...

And Ecoboost has only been released with "performance" in mind at this point too. So just about any performance vehicle as all the goodies on it.

 

I don't see a Ecoboost Focus or Fiesta base unit costing more than a $1k tops more than a base NA engine. Probably in the $750 range if I had to guess.

Link to comment
Share on other sites

Ecoboost forget the eco bit l like the boost, V6 Falcons, V6 F-150s, Enonetic diesel & return of the trusty Kent cross-flow push all the right buttons for me, Ford will be laughing all the way to the bank if $100 oil returns which it probably will do.

 

Nobody in the UK could afford to fill up their Jeeps, Land Cruisers etc when oil hit $146 last year, they became worthless garden ornaments that you could not give away. Most owners abandoned them and had to walk, cycle, bus, catch the train or just buy a small second hand cheap fuel-efficeint car. It must still be implanted in memory banks of these owners, l can't see them wanting anything other than ecoboost in the future.

Link to comment
Share on other sites

Hmmm ... didn't some Ford exec say the delta cost was only $700 a couple of years ago ?

 

Yep, here it is !

 

Okay, the $5-10,000 delta does include a lot of options (AWD, Sync, etc, etc), so it is not apple to apples. Some how I remember being trashed when I called BS on the $700 number !

 

$700 to $1000 for EcoBoost.

$4,000 for AWD, Sync, etc, etc.

$5,000 for extra profit.

 

Good for Ford. This profit won't last. People who order the 2.0L and 1.0L will not be getting the big extras. Ford won't be getting the big profits on these cars, but they will have more competitive cars.

Link to comment
Share on other sites

We've been through this before. Take an AWD Taurus Limited and an SHO and equip them with the exact same options. The price difference was $3330.

 

This is normal. Ford must make the big profits when the technology is new. In the future, Ford will have to cut the price and spend money on improving the technology.

Link to comment
Share on other sites

This is normal. Ford must make the big profits when the technology is new. In the future, Ford will have to cut the price and spend money on improving the technology.

smart.....word of mouth is one of the best sources of advertising...and its free....the more good press the current eco engines receive, the less resistance to the technology when the smaller enfgines come with similar tech......

Link to comment
Share on other sites

You can buy a diesel option for less than $5K from Mercedes and Ford cannot offer a turbocharged gasoline engine option for half that price?

 

Is that right? If so those Lincoln buyers must have money burning a hole in their pocket.

AND you can spend 55k to get it.........

Link to comment
Share on other sites

Hmmm ... didn't some Ford exec say the delta cost was only $700 a couple of years ago ?

 

Yep, here it is !

 

Okay, the $5-10,000 delta does include a lot of options (AWD, Sync, etc, etc), so it is not apple to apples. Some how I remember being trashed when I called BS on the $700 number !

How is cost equal to price? How does the $5-10k difference 'prove' that the cost of EB is over $700?

 

Ford needs to figure out the NBT, for when everybody's got TTGDI

Link to comment
Share on other sites

We've been through this before. Take an AWD Taurus Limited and an SHO and equip them with the exact same options. The price difference was $3330.

and that 3300 includes one HELL of a lot more than just the engine.....

Deanh, please explain.

 

Steven claims that if you load an AWD Taurus Limited with the exact same options as the Taurus SHO, minus the EcoBoost engine, the difference is $3300. What did he (and the rest of us) miss ?

 

(My gut says that $3,000 is probably pretty close to the retail delta cost of a V6 EcoBoost engine. I'm guessing at least a $1,000 retail delta for a I4 EcoBoost, but I hope I'm wrong.))

Edited by theoldwizard
Link to comment
Share on other sites

and that 3300 includes one HELL of a lot more than just the engine.....

 

Deanh, please explain.

 

Steven claims that if you load an AWD Taurus Limited with the exact same options as the Taurus SHO, minus the EcoBoost engine, the difference is $3300. What did he (and the rest of us) miss ?

well, just to name two how about huge suspension upgrades and suede seats, wheels are not just chrome cladthey are solid aluminum, HIDS, tires, upgraded exterior mirrors, intelligent acess with push button start....but hey....even without all that, a LOT of people pay a shite load for a 100hp bump.....

Edited by Deanh
Link to comment
Share on other sites

Ford needs to figure out the NBT, for when everybody's got TTGDI

Never happen. Some customers just are not willing to pay ANYTHING extra for it. Like the ones who still want only an AM radio. Ford will have to offer "stripper" models in order to compete.

 

Even though EcoBoost will be available on 90% of all models within a few years, the option "take rate" will be no where near 100%. I doubt it will be above 50% over the total volume of vehicles it is available on.

 

I'd love to see some "real" data on Taurus, Flex and MKS !

Link to comment
Share on other sites

Ding ding ding!! Customers buying the EB want their vehicles loaded. Let's sell 'em to 'em that way!

There's evidence flowing through that globally, Ford vehicles are moving up a level

and buyers are wanting more mid and upper series vehicles. If that trend continues,

Ford will start making healthy profits even with reduced/depressed production output.

 

Good things happen when you build quality products that buyers want.

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...