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Jalopnik: RWD Lincoln coming, and it's a crossover


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Here's a question: Ford said that both the Edge and the Fusion were built on CD3.

 

Were they built on one platform?

 

Edge was built on a modified CD3 platform and I don't recall any compromises to either the Fusion or the Edge based on that sharing, so why can't a new platform do the same thing?

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With Explorer ATPs at or above $50K and Aviator at $60K or higher it makes the business case

 

The business case is still this:

 

AWD on a RWD vehicle is significantly more expensive.

 

RWD is more expensive, period.

 

RWD presents more packaging difficulties in obtaining the same passenger volume from the same overall length/width.

 

RWD adds *no* value to a product that sells >12k units per month.

 

Speaking in vague terms, if RWD adds an average of $1k to the bottom line of every Explorer sold, and Aviators sell at 1/6th the rate (which would make them by far and away the most popular 3-row luxury CUV), you would have to net an additional $6k in profit per Aviator JUST TO BREAK EVEN. And that's $6k in profit over a FWD derived variant.

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If people are willing to pay $50K for a FWD based Explorer then I don't see a problem with an Aviator pulling $60K-$70K.

 

You don't buy Luxury CUVs for cargo space.

 

And people will put up with the same shortcomings from Lincoln that they put up with from BMW, right?

 

After all, that strategy has worked for Cadillac.

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Edge was built on a modified CD3 platform and I don't recall any compromises to either the Fusion or the Edge based on that sharing, so why can't a new platform do the same thing?

 

No it was not.

 

The Edge was built on the Mazda MPV platform that might have started off with bits and pieces of the 626, but which was unrecognizable by the time it was finished. The Edge didn't share a single piece of stamped metal or suspension componentry with the Fusion. It was hundreds of pounds heavier, wider, longer, and used totally different suspension concepts at all four corners. The nominal name for the Edge platform was CD3s.

 

Ford boasted that the Edge had an integrated ladder frame. Have you *ever* seen such language used to describe the Fusion?

http://cpanel.tkcarsites.com/cp/document.aspx?uDid=73&uSid=137&uPgId=2446

Edited by RichardJensen
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Volume.

MATH!!

 

 

volume of explorers in 2016

170,000

 

Volume of aviators in 2016

40,000

 

Global volume of escapes and Kugas

400,000

 

ATP of kugas and escapes $26,000

 

ATP of Aviator and Explorer $45,000

 

total revenue in 2016

Escape/Kuga $10.4 billion

 

Explorer/aviator $9.45 billion

 

WOW Twice the volume but not Twice the revenue how does that work?

 

Trivia.... does anyone here believe that it costs twice as much to build an Explorer as it costs to build an Escape?

 

inevitably the more expensive vehicle will have higher margins, which makes it possible to do what you deem impossible.

Edited by Biker16
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And people will put up with the same shortcomings from Lincoln that they put up with from BMW, right?

 

After all, that strategy has worked for Cadillac.

 

I have faith in the braintrust in Dearborn to do this right...

 

They'll have their "volume" bases covered quite nicely with MKZ, MKC, and MKX: Something GM has never shored up for Cadillac before chasing niche segments.

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Yeah. Just like the CT6, CT8, etc.

 

Except for the fact that Cadillac is going that route without ANY of the groundwork that Ford has done with Lincoln, like dramatically improving the buying and owning experience, right-sizing the dealer network, and committing to first class entries in volume segments BEFORE making moves up or out.

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MATH!!

 

Volume of aviators in 2016

40,000

 

MATH!!

 

40,000 / 12 = 3,333.33

 

XC90: 1,453

GL: 2,154

Q7: 1,365

 

This new Aviator is going to outsell these vehicles? Really?

 

And sales volume on this RWD Aviator is going to be so high that it will negate all the costs associated with migrating to RWD on the Explorer?

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Except for the fact that Cadillac is going that route without ANY of the groundwork that Ford has done with Lincoln, like dramatically improving the buying and owning experience, right-sizing the dealer network, and committing to first class entries in volume segments BEFORE making moves up or out.

 

Is that all Ford needs to do to compete with the S-Class?

 

Two years of dealership improvements at *most* but certainly not *all* Lincoln dealerships?

 

And Ford can sustain $75k+ transaction prices for CUVs and sedans when cheap hack services are still running tons of old Town Cars and when one does not have to look far to find an MKX or MKZ that is barely differentiated from an Edge or a Fusion?

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The business case is still this:

 

AWD on a RWD vehicle is significantly more expensive.

these are expensive vehcles, the period. RWD ay allow for better ASP and bring more customers into the brand.

 

RWD is more expensive, period.

see above

 

RWD presents more packaging difficulties in obtaining the same passenger volume from the same overall length/width.

here is a fatal flaw in you comparison between the X5 and the edge. luxury buyer are less concerned with interior space, they can afford to have other vehicles and may have pickup truck as well as their luxury car. Understand these differences one size doesn't fit all.

 

RWD adds *no* value to a product that sells >12k units per month.

In your opinion.

 

but a Crossover with V8 power is an attractive upgrade over the Explorer.

 

Speaking in vague terms, if RWD adds an average of $1k to the bottom line of every Explorer sold, and Aviators sell at 1/6th the rate (which would make them by far and away the most popular 3-row luxury CUV), you would have to net an additional $6k in profit per Aviator JUST TO BREAK EVEN. And that's $6k in profit over a FWD derived variant.

Who cares if RWD costs $1000 more on a $50-60 thousand dollar vehicle. I cannot fit a V8 on a FWD/AWD vehicle without paying penalty in weight and and performance. if you want a V8 you go RWD. and even with Eco-boost as an option it is less expensive to offer a V8 than a EB3.5.

 

Your numbers are off the development costs of the platform would be spread evenly among all products on the platform, the variations of each top hat would be assigned to each individual product. adding Lincoln volume to the platform would lower costs for all vehicles on the platform.

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MATH!!

 

40,000 / 12 = 3,333.33

 

XC90: 1,453

GL: 2,154

Q7: 1,365

 

This new Aviator is going to outsell these vehicles? Really?

 

And sales volume on this RWD Aviator is going to be so high that it will negate all the costs associated with migrating to RWD on the Explorer?

I'm sorry darling we are going

 

GLOBAL!!!!!!!!

Edited by Biker16
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I'm sorry darling we are going

 

GLOBAL!!!!!!!!

 

 

You really think that a 7 Row CUV that would retail at 50K in the US and even more overseas is going to sell 40K units world wide?

 

I'd like to have what your smoking.....

Edited by silvrsvt
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