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Ford's hot-selling Fusion struggles to meet demand


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Ford's hot-selling Fusion struggles to meet demand

 

Ford Motor Co.’s 2013 Fusion became an instant hit with consumers and has thrust the Dearborn automaker into the middle of a four-car race atop the lucrative midsize segment.

But Fusion sales, up nearly 22 percent this year, may soon be stuck at current levels because Ford can’t make enough to meet growing demand, particularly in markets such as Los Angeles, San Francisco and Miami. And if car shoppers can’t get a Fusion, Ford may lose them to a competitor -- especially one of the strong-selling Japanese midsize cars.

“Inventory is going to be real tight during the summer months,” said Erich Merkle, Ford’s U.S. sales analyst, in a telephone interview.

That tightening already has begun. Ford has a 39-day supply of the car, according to automotiveicon1.png data and news site WardsAuto.com. That means if production were to stop today, the automaker would have enough Fusions to last about 5 1/2 weeks.

Inventory benchmarks vary by vehicleicon1.png and season, but typically a healthy average is about 60 days.

The midsize car segment is the largest segment in the industryicon1.png; sales of midsize cars in May were 17.3 percent of all vehicle sales, according to data compiled by automotive researchers at Kelley Blue Book.

Ford is struggling to maintain normal inventory levels of the Fusion, particularly on the East and West coasts, regions where Ford sales have historically lagged.

But the Fusion, along with the Fusion Hybrid, have connected with coastal consumers better than Ford had anticipated.

Ford has doubled its coastal retail market share, Merkle said, and pointed out that the strongest areas of growth are in Los Angeles, San Francisco and Miami.

Ford manufactures the Fusion at its three-shift assembly plant in Hermosillo, Mexico, and this year will add a shift of production at the Flat Rock Assembly Plant.

“Clearly, it's a matter of getting more stock out to those regions of the country and that's what we plan to do in the fall when we get Flat Rock on line,” he said.

The Hermosillo plant can produce about 300,000 Fusions annually; the new Flat Rock shift will be able to make another 100,000, or more than 8,000 per month.

An extra 8,000 sales a month would allow Ford to challenge perennial midsize players Toyota Motor Corp., with its Camry, and Honda Motor Co., with its Accord, and fend off Nissan Motor Co.’s Altima, which is fourth in the segment. But if Ford can’t catch up with demand, the Japanese automakers may convince new car buyers to look at their offerings.

“Although midsize is still the best-selling segment, in terms of growth, things have stabilized,” said Alec Gutierrez, senior analyst at Kelley Blue Book. “With such competitive products from the four automakers, it's going to be a very, very tight race to try and own the segment outright.”

Toyota last year sold more than 400,000 Camry cars and Honda and Nissan both surpassed 300,000 with their offerings. Ford sold about 241,000 Fusions in 2012.

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Mazda really did Ford a huge favor by getting out of Flat Rock... Those extra Fusions are all cheery on top the cake in terms of marginal revenue.

 

 

Its even more then that...after the Fusion gets spun up, its going to be the first time that the plant will be near capacity...and then add in the MKS and Taurus volumes and its going to be a hopping place for the first time ever...

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Ford's sales volume makes a mockery of articles questioning whether quality and recalls have affect its reputation.

Clearly, early problems with Fusion, Focus Escape are not impacting on their contributions in Ford's super segment.

Edited by jpd80
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Mazda really did Ford a huge favor by getting out of Flat Rock... Those extra Fusions are all cheery on top the cake in terms of marginal revenue.

without Ford's steadying hand, Mazda is already off the rails and heading for continuing losses.

It was almost inevitable that Mazda would royally screw up with the 6 and lose sales volume,,,,

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without Ford's steadying hand, Mazda is already off the rails and heading for continuing losses.

It was almost inevitable that Mazda would royally screw up with the 6 and lose sales volume,,,,

 

They tell me that the previous 6 was the one that was screwed up... the one closer in size to the previous Fusion. I can't find sales numbers of the first two generations of the 6 to compare.

 

I will say that only offering a NA I4 and (soon) a diesel is hurting sales. They've never gone this long without having an engine upgrade.

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without Ford's steadying hand, Mazda is already off the rails and heading for continuing losses.

It was almost inevitable that Mazda would royally screw up with the 6 and lose sales volume,,,,

Not that it matters much to what you're saying, but the new Mazda6 just beat the Accord in a comparison test over at Car and Driver. The first time anything's beat the Accord for them, at least as far as I can remember.

 

And (to stray even further afield). . . . I still haven't driven a Ford with a V-6 in it I'd trade my Mazda-designed KL for :)

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Not that it matters much to what you're saying, but the new Mazda6 just beat the Accord in a comparison test over at Car and Driver. The first time anything's beat the Accord for them, at least as far as I can remember.

The 6 is a good effort but accolades from the press don't necessarily convert into sales success,

buyers tastes and perception of brand are powerful influences in the decision making process..

And I don't think Mazda has convinced the right people, potential buyers.

 

 

And (to stray even further afield). . . . I still haven't driven a Ford with a V-6 in it I'd trade my Mazda-designed KL for :)

Agree, I love the baby 1.8 V6 KL, they seem so torquey, smooth and purposeful in a small car like Mazda Astina

and the 2.5 in the Mazda 6 was sensational, the early Mondeo 2.5 V6 was just as nice IMO...

Edited by jpd80
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Taurus won't be going to Flat Rock.

Its even more then that...after the Fusion gets spun up, its going to be the first time that the plant will be near capacity...and then add in the MKS and Taurus volumes and its going to be a hopping place for the first time ever...
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Taurus won't be going to Flat Rock.

 

What makes you say that? if the MKS moves to Flat Rock, why wouldn't the Taurus?

 

The Police Interceptor and Police Interceptor Utility will be built along side the Explorer at Chicago till 2018 or so, but the Consumer version of the Taurus is moving over to a new platform based on a extended Fusion platform (along with the MKS) with in the next 24 months or so.

 

2015-lincoln-mks-spy-photo-photo-511225-

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Don't quote me on this, but I believe MKS is going on a different platform, but Taurus (for now) will remain on modified version of current platform.

What makes you say that? if the MKS moves to Flat Rock, why wouldn't the Taurus?

 

The Police Interceptor and Police Interceptor Utility will be built along side the Explorer at Chicago till 2018 or so, but the Consumer version of the Taurus is moving over to a new platform based on a extended Fusion platform (along with the MKS) with in the next 24 months or so.

 

2015-lincoln-mks-spy-photo-photo-511225-

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What makes you say that? if the MKS moves to Flat Rock, why wouldn't the Taurus?

 

The Police Interceptor and Police Interceptor Utility will be built along side the Explorer at Chicago till 2018 or so, but the Consumer version of the Taurus is moving over to a new platform based on a extended Fusion platform (along with the MKS) with in the next 24 months or so.

 

2015-lincoln-mks-spy-photo-photo-511225-

Oh dat long ass :happy feet:

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Don't quote me on this, but I believe MKS is going on a different platform, but Taurus (for now) will remain on modified version of current platform.

 

That makes zero business sense unless they are going a RWD model based on the Mustang?

 

Still doesn't add up even with the information (the attribute mule I've posted) and the fact that the Taurus/Explorer/PI and PIU volume isn't enough keep Chicago busy for 3 shifts.

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