FORD REDUCES NORTH AMERICAN VEHICLE PRODUCTION 21%

[vince337]

click here for the article

[robertlane]

CNN/Money article

[2005Explorer]

Well it is better to do this then to keep increasing production and have vehicles pile up in parking lots, warehouses and fields...then use a fire sale to try and unload all of them.

[Edgey]

The media is yucking this one up, failing to see the virtues of slashing production instead of rebating to death. Of course, Ford's marketshare will suffer.

[Walt]

Of course, Ford's marketshare will suffer.

 

However, the reverse doesn't work either.

 

Last year, GM "bought" market share with employee pricing and rebates. However, once that was over, GM lost all they gained. GM execs even pointed out that "buying" market share doesn't make any sense if you can't keep it.

 

It is better to be a smaller, but profitable, company. Than a larger company heading into bankruptcy.

[voncoon]

I guess some of these "positive attitude people" would have done so on the stern of the Titanic. I believe FOMOCO will shrink to very small auto producing company. To see a new Ford Fusion around here is a very rare thing. I am seeing lot of Kias around our area suddenly, and that is strange.

[waymondospiff]

Last year, GM "bought" market share with employee pricing and rebates. However, once that was over, GM lost all they gained. GM execs even pointed out that "buying" market share doesn't make any sense if you can't keep it.

 

Very true. I think everyone sat around the table and said, "2007 sales are already going to suck, let's take the HUGE hit now so we won't see the slide continue into 2008." And that really makes sense. Analysts will scream in the short term, but if you keep the board & the Ford family in-the-know and on your side, you can suffer the short-term setbacks.

 

What isn't good is that Chicago is being idled. The D3s have to start selling! Ford cannot continue to invest in these large sedans that no one wants. If fuel economy is so important why haven't I seen a single ad stating "Large, roomy interior. Huge trunk. Comfortable upright seating. And 29 mpg highway!" Or, "More front & rear space than a midsize SUV. Similar Command Seating. AWD for any weather. 24 mpg highway!"

 

I've stated time and again that Ford has absolutely NO idea how to market the Freestyle. The old viewpoint was every Freestyle sale was one less Explorer sale. But now with the Explorer in a tailslide should protecting its image be the number one priority? I don't think so. CVT, seven ADULT passenger seating, huge cargo area, flexibility, command seating, quiet ride, oh, yeah, and 27 mpg!

 

Scott

[range]

Well it is better to do this then to keep increasing production and have vehicles pile up in parking lots, warehouses and fields...then use a fire sale to try and unload all of them.

 

 

you mean like Chrysler is doing?

[RichardJensen]

Ford cannot continue to invest in these large sedans that no one wants.

I see it the other way around: Ford must continue to invest in these sedans until they get it right. They're off the mark now, but at least they're not pushing fleet volume to make the numbers work out.

[ZanatWork]

I wonder how much real ad campaigns could help? I've seen one Freestyle commercial this whole year, and the Five Hundred is seemingly forgotten.

[silvrsvt]

I guess some of these "positive attitude people" would have done so on the stern of the Titanic. I believe FOMOCO will shrink to very small auto producing company. To see a new Ford Fusion around here is a very rare thing. I am seeing lot of Kias around our area suddenly, and that is strange.

 

 

I'm sorry but basing your views on just on your limited demographic area isn't a true representation of how well a product is selling. In my area, I see tons of Fusions and for example when I was at the hospital today, I saw a Zeypher and Milan in the parking lot...

 

Just because its not selling your area, doesnt mean its not flying off the lots in other areas...and keeping in mind the Heromislo plant running at 3 shifts must mean the CD3 cars are selling.

[RichardJensen]

I wonder how much real ad campaigns could help? I've seen one Freestyle commercial this whole year, and the Five Hundred is seemingly forgotten.

The Five Hundred does not, erm, integrate well into the "Bold Moves" platform. The Freestyle does.

 

Expect the refreshed Five Hundred to get more attention, as right now you'd be hyping a 2 year old product. Ford also dropped the marketing support for the Five Hundred after the first year, something they're not doing with the Fusion, and something they'll probably not do going forward.

 

The new Five Hundred will get more of a Fusion-esque interior look, with contrasting stitching, contrasting leather inserts, and black, as well as beige and charcoal for the interior. A more 'expressive' face will also allow it to slot in better as the Fusion's 'big brother', although--overall--the vehicle will still be more conservative, sedate, and appeal to an older segment of the population.

 

--

 

p.s. the large car segment is down for the year. Avalon and 300 sales are disappointing as well.

[YoungFordMan]

I'm sorry but basing your views on just on your limited demographic area isn't a true representation of how well a product is selling. In my area, I see tons of Fusions and for example when I was at the hospital today, I saw a Zeypher and Milan in the parking lot...

 

Just because its not selling your area, doesnt mean its not flying off the lots in other areas...and keeping in mind the Heromislo plant running at 3 shifts must mean the CD3 cars are selling.

 

I agree...we went to colorado on shut down and nuthin but hondas hundai and a few ford a dodge trucks

-only saw two navigators drivenby old retirees

 

so you cant base it like that....with this new newsit will only let the dealerships sell what they got and make room for the new models that we are gonna make when the launches start to become successfull and we go to full production.

 

just keep the faith y'all

[jasonj80]

Very true. I think everyone sat around the table and said, "2007 sales are already going to suck, let's take the HUGE hit now so we won't see the slide continue into 2008." And that really makes sense. Analysts will scream in the short term, but if you keep the board & the Ford family in-the-know and on your side, you can suffer the short-term setbacks.

 

What isn't good is that Chicago is being idled. The D3s have to start selling! Ford cannot continue to invest in these large sedans that no one wants. If fuel economy is so important why haven't I seen a single ad stating "Large, roomy interior. Huge trunk. Comfortable upright seating. And 29 mpg highway!" Or, "More front & rear space than a midsize SUV. Similar Command Seating. AWD for any weather. 24 mpg highway!"

 

I've stated time and again that Ford has absolutely NO idea how to market the Freestyle. The old viewpoint was every Freestyle sale was one less Explorer sale. But now with the Explorer in a tailslide should protecting its image be the number one priority? I don't think so. CVT, seven ADULT passenger seating, huge cargo area, flexibility, command seating, quiet ride, oh, yeah, and 27 mpg!

 

Scott

 

 

One of the 8000 reasons Ford needs to fire the marketing department and AD agency, and start from scratch. Hopefully the 6000 job cuts are in Marketing, HR, and Finance with the bean counters being especially hard hit.

[NoMoVisteon]

I guess some of these "positive attitude people" would have done so on the stern of the Titanic. I believe FOMOCO will shrink to very small auto producing company. To see a new Ford Fusion around here is a very rare thing. I am seeing lot of Kias around our area suddenly, and that is strange.

Can't argue with this post, Voncoon. Down here in Ohio, I've seen a SHITLOAD of Hondas and right with them, Toyotas. Seems like an awful lot of Ohioans go for these, too bad that Ohioans have forgotten that Ford even exists and the other domestic auto companys as well. All one has to do is look down residential streets and the shopping malls too, the driveways and shopping mall parking lots are just full of them. Not to mention that I have gotten some dirty looks from people who drive these pieces of junk......... :slap: Kinda makes you think that you are not wanted around at all, maybe if I get a buyout, I definately will be leaving

[NoMoVisteon]

Ford needs to get off their asses and build some cars people actually want. Why idle Chicago? Why not just shut it down and pull ahead the 500 re skin. It doesn't need it in a year, it needs it now. Ford spend a ton of money making Flex plants, but none are doing it. We have demand for the Mexicars, and excess capacity in the U.S. Why not build some here? What a waste.

Well said, Pioneer.

[ZanatWork]

Ford needs to get off their asses and build some cars people actually want. Why idle Chicago? Why not just shut it down and pull ahead the 500 re skin. It doesn't need it in a year, it needs it now. Ford spend a ton of money making Flex plants, but none are doing it. We have demand for the Mexicars, and excess capacity in the U.S. Why not build some here? What a waste.

 

 

Because there's an enormous financial leech that makes building in the US FAR more expensive.

 

 

It's salting time!

[jlucas10]

Ford needs to get off their asses and build some cars people actually want. Why idle Chicago? Why not just shut it down and pull ahead the 500 re skin. It doesn't need it in a year, it needs it now. Ford spend a ton of money making Flex plants, but none are doing it. We have demand for the Mexicars, and excess capacity in the U.S. Why not build some here? What a waste.

 

The new 2008 500 is a lot more than a "re skin." New 3.5L engine and 6 speed trans with a better look and interior. Ford is trying to pull it up fast with the first several production builds scheduled for next month at Chicago assy.

[Nels Nelson]

Ford sells its cars and trucks to its dealers.

 

If Ford is cutting production, it must mean they are not receiving orders from their dealers.

 

This must mean things are getting ugly on the front line.

 

Which means: "It's the economy, stupid".

[judge]

Only FORD can cut jobs, lose market share, close factory's, and call it "The Way Foward" - give me a break!!!

[ZanatWork]

Uninformed biased motorists that demand rebates, incentives, and more powerful engines in cars they have never even test driven, or intended to buy?

 

If the shoe fits, bro... :shrug:

 

 

Oh...you're saying labor/benefit costs don't enter into it at all?

[Roadrunner]

Uninformed biased motorists that demand rebates, incentives, and more powerful engines in cars they have never even test driven, or intended to buy?

 

If the shoe fits, bro... :shrug:

 

No, the leech is the UAW pension costs. Whatever is making the price of a car rise by $2,000 per vehicle means it can't compete as efficiently as the imports.

 

What should happen is we tighten the tariffs to Japan and Korea for automobiles and make the prices more for their importation, as their currencies are stronger(?) than the dollar at the moment.

[ANTAUS]

If we place import tarriffs on Japanese vehicles entering the country, there wouldn't be that many that would be affected since many of them are produced in the U.S. already.

 

What you could do, is place a tarriff on the basis that it's a company HQ's in Japan, but then the argument against would be "Well this is Toyota of NA", thats our headquarter.

 

So it's very tricky. Most importantly, you need a government that would be willing to at least look at alternatives, and unfortunately ours have said there isn't a problem...

[NoMoVisteon]

If we place import tarriffs on Japanese vehicles entering the country, there wouldn't be that many that would be affected since many of them are produced in the U.S. already.

 

What you could do, is place a tarriff on the basis that it's a company HQ's in Japan, but then the argument against would be "Well this is Toyota of NA", thats our headquarter.

 

So it's very tricky. Most importantly, you need a government that would be willing to at least look at alternatives, and unfortunately ours have said there isn't a problem...

When you have a bunch of wealthy politicians holding the greater majority of the seats in both Houses plus those on staff at the White House and other Governmental agencies, they couldn't care less if the domestic auto manufacturers go out of busniess. Afterall, we don't make relevant products, right? Now, as employees of Ford Motor Co, we are just beginning to reap the whirlwind of their national economic agenda and the policies that been enacted. No wonder life is going just great for the wealthy.......... :angry:

[Traveler]

Why couldn't Ford do more customer loyalty incentives to encourage repeat business from Ford Motor Company customers? Give the regular Ford customers better cash back, free options or better finance rate. Also, how about competitor incentives in which they would offer a cash back incentives on trade of a competitors' vehicle for a brand new Ford, Mercury or Lincoln?