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GM bows out; Ford takes over value-price role


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I think Autoweek's portrayal of Ford moving in as the price-value leader is a little misleading.

 

Read this:

"In the 2006 model year, Automotive News found that GM stickers went down an average of $1,293, or 4.6 percent. Ford's dipped an average of $546, or 1.9 percent. All figures in this report are sales-weighted.

 

For the 2007 introduction, the shoe is on the other foot. Ford sticker prices have been slashed an average of $239, and GM's labels are up an average of $288. That is a difference of about 1 percent for each company."

 

GM's slashing and later upping equals an average of $800 off 2005 prices; Ford's slashing (largely on their truck models) is just $200 from 2006 to 2007.

 

It will be a story, though, if Ford lowers prices more in '07.

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I think Autoweek's portrayal of Ford moving in as the price-value leader is a little misleading.

 

Read this:

"In the 2006 model year, Automotive News found that GM stickers went down an average of $1,293, or 4.6 percent. Ford's dipped an average of $546, or 1.9 percent. All figures in this report are sales-weighted.

 

For the 2007 introduction, the shoe is on the other foot. Ford sticker prices have been slashed an average of $239, and GM's labels are up an average of $288. That is a difference of about 1 percent for each company."

 

GM's slashing and later upping equals an average of $800 off 2005 prices; Ford's slashing (largely on their truck models) is just $200 from 2006 to 2007.

 

It will be a story, though, if Ford lowers prices more in '07.

Check yer math. Ford dropped an average of $546 from '05 to '06, and then another $239, for a total decline of $785, GM's $1,293 - $288 = $1,005. The difference: $220, is about 1% of average MSRP.

 

Also, this analysis fails to include the fairly low MSRPs of the Fusion and Five Hundred, because both were new launches.

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The Expedition is going down considerably more then $3000. And the Fusion/Focus are priced against Korean competiors well below japanese equivilents. 500 and Freestyle are incredible values for their price point. Pretty impressive for a lot of new platforms, its one thing if they were still selling the Taurus and discounting the MSRP like it was a Malibu or something...

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Check yer math. Ford dropped an average of $546 from '05 to '06, and then another $239, for a total decline of $785, GM's $1,293 - $288 = $1,005. The difference: $220, is about 1% of average MSRP.

 

Also, this analysis fails to include the fairly low MSRPs of the Fusion and Five Hundred, because both were new launches.

 

Mea culpa -- I forgot to include the 05-06 drop for Ford when calculating their 05-07 numbers versus GM's 05-07 numbers.

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