Biker16 Posted June 19, 2015 Share Posted June 19, 2015 So basically Biker16 wants us to believe that he knows what's best for Ford much much better than Ford actually knows, even though Ford has information on their cost structure, market forecasts and trends, etc. that Biker16 doesn't have. They also have people who they pay large sums of money to make exactly these types of decisions. They have also proven their ability and inclination to do exactly what Biker16 wants them to do on certain vehicles, but not others. No way you're going to get us to agree with you and not Ford on this one. No way. I know this, but this is forum of ideas, and the reasoning of Ford's decisions isn't Clear at all, no matter what Richard says even he doesn't know why Ford makes the decisions Ford Makes. Quote Link to comment Share on other sites More sharing options...
Biker16 Posted June 19, 2015 Share Posted June 19, 2015 How would you know whether adding ~10% to the 2 shift output is 'doable'? They're the primary source of the C-Max, Kuga & Transit Connect. If they're building an average of 80k of each per year, they're running at about capacity for 2 shift output. Frankly, Transit Connect sourcing could very well be using up excess capacity that could be used to furnish Escapes. Secondly, Ford only circumvents some SG&A costs when they ship EU production to another business unit for sale. To the extent that EU losses are due to COGS in excess of revenue, adding cost for the same (or less) revenue per unit, you're not helping things. The difference between the Escape & the Transit Connect is, I would guess, that the TC is profitable on a per-unit basis. Parts and assembly cost in aggregate is almost certainly less than the Escape, and by a margin that likely well-exceeds the difference in revenue per unit. for a plant with a capacity of 500,000 units, making these models Fusion Fusion Wagon Fusion Hatch S-max galaxy Kuga Transit Connect LWB Transit connect SWB Add in Deisel and GAS and HEVs PHEVs, AWD and FWD. the To add an additional Kuga's shouldn't be a problem, If the variation between the Kuga and Escape are minimal. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 19, 2015 Share Posted June 19, 2015 (edited) Valencia's got two assembly lines: http://www.automotivelogisticsmagazine.com/home-page/ford-rings-the-changes-at-valencia If the "C" line is max two shifts w/Kuga and TC (and that seems a reasonable inference), you can't add Escape export volume w/o adding a third shift. Edited June 19, 2015 by RichardJensen Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 19, 2015 Share Posted June 19, 2015 (edited) Given that ~25% of Valencia's "C" line output is already being exported to NA, you can figure there's a pretty good reason why they're not sending any Escapes over. Edited June 19, 2015 by RichardJensen Quote Link to comment Share on other sites More sharing options...
Biker16 Posted June 19, 2015 Share Posted June 19, 2015 Given that ~25% of Valencia's "C" line output is already being exported to NA, you can figure there's a pretty good reason why they're not sending any Escapes over. Valencia's got two assembly lines: http://www.automotivelogisticsmagazine.com/home-page/ford-rings-the-changes-at-valencia If the "C" line is max two shifts w/Kuga and TC (and that seems a reasonable inference), you can't add Escape export volume w/o adding a third shift. I don't think the "lines is as linear as you think it is. the products can be moved between lines. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 20, 2015 Share Posted June 20, 2015 (edited) Doesn't matter. If the CD line is running two shifts max as well then either way you're looking at adding a third shift. Biker, face it, there's a reason why Ford is exporting TCs from Valencia and a reason why they are not exporting Escapes. Edited June 20, 2015 by RichardJensen Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 20, 2015 Share Posted June 20, 2015 Conversely, there's a reason why they're exporting Edges from OAC and not exporting Mondeos from FRAP. Quote Link to comment Share on other sites More sharing options...
MKII Posted June 20, 2015 Share Posted June 20, 2015 (edited) Image from Valencia showing a Tourneo Connect (Transit Connect) behind a Mondeo wagon on the assembly line. Source http://www.gettyimages.com/detail/news-photo/employees-work-on-ford-mondeo-vehicles-on-the-production-news-photo/462786816 Edited June 20, 2015 by MKII Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 20, 2015 Share Posted June 20, 2015 Point still stands: If the lines are maxed, you can't add volume for export without dramatically increasing your fixed costs via a third shift on one of them. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted June 20, 2015 Share Posted June 20, 2015 (edited) Point still stands: If the lines are maxed, you can't add volume for export without dramatically increasing your fixed costs via a third shift on one of them. Add to that FoE would prioritize its own production ahead of any external orders, waiting up to four months is unacceptable for Nth American customers but other parts of the globe are expected to fall in line.. Transit Connect production for Nth America is probably kept to particular models and equipment levels that fleets usually buy where as building Escape over flow would require too much variability in product mix for mostly retail customers. Edited June 20, 2015 by jpd80 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 20, 2015 Share Posted June 20, 2015 Well, they could limit Valencia exports to a single trim to simplify the builds, but I don't think Ford can responsibly add export volume until they've got enough justification for another shift. It would not surprise me in the least if one or two proposals for a third shift have been pitched w/Escape export volume in the mix, but the math apparently doesn't work yet. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
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.