I’m just a data point of one, but I sure as hell remember when gas prices spiked. I even remember shortages in the 70s when I was a kid. Since I have no use for a larger vehicle, I’ve never even consider anything other than a small car.
I don’t expect everyone to think the way I do, but I still don’t understand why so many people want such big vehicles. So I have a hard time seeing this as anything other than a company making a reasonable decision based on demand, and that demand being pretty foolish.
I feel same way when people (of any political stripe) blame “the media” for whatever is on their minds. If there wasn’t a strong demand for bullshit, it wouldn’t be so readily available.
I’m confused: Up above I posted about the Focus ST advertised fuel economy (city 22, highway 30, combined 25). Is that what passes as good MPG in 2018? My Subaru gets better mileage. Of course, no one would every call my Subaru fun through the twisties And it’s 0-60 in a couple minutes won’t get bragged about either.
But for one thing there’s far from any certainty gas prices will ever be as high in the US (or Canada, where taxes aren’t that much higher than the US) as Europe. Second the two markets aren’t necessarily the same otherwise even so. The effective degree (tariff and non-tariff) protection isn’t necessarily the same either, from lower cost producers outside North America and EU respectively. As everyone can see who compares prices on the same upscale cars sold in the US and EU they are cheaper in the US correcting for shipping cost, sometimes outright cheaper, a more competitive market demands that. Plus the protectionist idea nowadays, somewhat oddly, tends to put special focus on (nominally) US makers not shifting production outside the US, more than it does against non-US makers selling cars in the US made elsewhere.
Two different kettles of fish. And generally as a first approximation if Ford, doing business in both places, concludes it can’t make money on small sedans in the US but can elsewhere, that’s probably a more reliable indicator than an off the cuff estimate from somebody who isn’t in an executive at a car company. And based on any reading IMO it’s accepted that the Detroit makers don’t believe they can make money on small cars in the North American market, or at least they’re would be no point in them being in business if that’s all they did.
And though in reality corporate executives have mixed motives because they want to remain employed, they really shouldn’t be looking for ways to perpetuate their companies no matter what. But rather, to deliver value to shareholders. So they really should’t emphasize unlikely prospects like trying to be profitable in North American market conditions in the unlikely event the market came to be dominated by small sedans. They should probably pack it in in that case and let investors put their capital to work elsewhere.
Tesla’s sales (or not, they were estimates) wasn’t the interesting bit I took away from the tables. The most shocking thing is that the best selling mid-size luxury SUV, the Lexus RX, sold 23,790 units, which alone is more than all large luxury cars, which only totaled 19,995 units combined.
Is it a capacity thing, too? I recently read an article (sorry, no link) saying Ford couldn’t make enough Expeditions to meet demand. That is a very profitable model. If they can sacrifice some Fiesta sales to sell more Expeditions, they’d be crazy not to.
Until tastes change again, sedans are niche vehicle, and are going the way of the station wagon.
All the business gurus say that you should focus on your strengths, instead of trying to be everything to everybody.
And that’s exactly what Ford is trying to do with this decision. Among other considerations, the F-series has been the top-selling truck for a LONG time.
Do you think that Home Depot should start selling groceries to compete more with Walmart?
What will they do with the plants now producing passenger cars in North America (both in the states, especially MI, and in Mexico)? Just shutter them and the employees all fired? Or do they get repurposed for the other segments, inclusive of their plans for fleet autonomous vehicles?
Michigan Assembly (where the Focus and C-Max were built) is shut down for retooling to build the upcoming Ranger and Bronco. Chicago Assembly (where the Taurus is build) already builds the Explorer so they’ll be fine. Not clear yet on Hermosillo (Fusion) or Cuautitlan (Fiesta.)
Thank you. Still while they also build the Explorer at Chicago Assembly do they expect to ramp up its volume? Or do the Taurus lines get shut down?
Obviously some jobs will be lost. Any informed estimates on how many?
And the Flat Rock plant is planned for a planned new autonomous vehicle, yes?
Any guesses if the new tariffs on steel and aluminum were of any impact on the timing of this decision? (Note, not the root cause of, the decision seems destined to have happened at some point.)
Will this have any impact on Ford’s eligibility to continue to support teams in NASCAR? I know stock cars ceased being stock decades ago, but is there still some regulation that the cars bear some superficial resemblance to a commercially-available vehicle from that manufacturer? I wonder if that was part of their rationale for continuing the Mustang.
Mustang will be the body style going forward.
At any rate, I doubt NASCAR would bristle too much. It’s not 1966; NASCAR needs the car companies way more than the car companies need them.
So why did the idiots at Ford can the Econline van after 2013? That was by far the best service and delivery van ever sold. In production over 35 years.
They replaced it with a tiny transit van. It’s nice but can’t carry as much equipment or packages. Service contractors outfit their vans with storage bins. Every part they carry and tool has a home. The transit van just can’t carry what they need for service calls.
If Ford cares about commercial customers they’ll bring back the E250 Econoline.
What are you talking about? The smallest Transit (the med. wheelbase low-roof) is as big as the smallest E-Series was. And you can get the Transit in three different roof heights which you could not do with an E-Series from the factory. if you wanted an E-Series with the raised roof, you had to get one through an upfitter who would butcher it.
huh, so that woman I talked to who owned a home renovation business and had a Transit outfitted as a rolling workshop didn’t actually exist, then?
And it’s 0-60 in a couple minutes won’t get bragged about either.
And based on any reading IMO it’s accepted that the Detroit makers don’t believe they can make money on small cars in the North American market, or at least they’re would be no point in them being in business if that’s all they did.