Ford is adapting to the times

[stormyseas]

Why is this so hard for GM to understand that gas guzzling cars are not what the average consumer is looking for? Ford is smart by adapting to these times
check out this artilce:

http://www.dailytech.com/Ford+Invest...ticle15075.htm

 

[Piobaire]

Originally Posted by stormyseas

Why is this so hard for GM to understand that gas guzzling cars are not what the average consumer is looking for? Ford is smart by adapting to these times
check out this artilce:

http://www.dailytech.com/Ford+Invest...ticle15075.htm

I'm sorry, but you could not be more wrong. What's the best selling Ford (and also best selling vehicle) of 2008?

http://news.pickuptrucks.com/2009/01...-series-f.html

After battling high fuel prices in the first half of the year and a terrible economy in the second, the Ford F-Series pickup finished 2008 as the best-selling vehicle in the country for the 32nd year in a row.

 

[uhurit]

Originally Posted by stormyseas

Why is this so hard for GM to understand that gas guzzling cars are not what the average consumer is looking for? Ford is smart by adapting to these times
check out this artilce:

http://www.dailytech.com/Ford+Invest...ticle15075.htm

Nonsense!

An average consumer is manipulated by sneaky advertising+stricter lending practices+economic fears.

 

[A Y]

Originally Posted by stormyseas

http://www.dailytech.com/Ford+Invest...ticle15075.htm

Originally Posted by Piobaire

http://news.pickuptrucks.com/2009/01...-series-f.html

Not sure what the F150 being the best selling vehicle in the US has to do with Ford converting truck plants to car plants. There are lots of reasons why Ford is doing the conversion:

1. They have overcapacity on F150 production. Just because something's the best selling vehicle doesn't mean they can't make enough of it.

2. Ford makes trucks other than the F150. The converted truck plants could have been producing trucks besides the F150, and in fact the article points out the Michigan plant produces SUVs.

3. Low gas prices won't last forever. Truck sales fall precipitously when gas prices rise, and it's smart for Ford to diversify its production capabilities.

--Andre

 

[Piobaire]

Originally Posted by A Y

Not sure what the F150 being the best selling vehicle in the US has to do with Ford converting truck plants to car plants. There are lots of reasons why Ford is doing the conversion:

1. They have overcapacity on F150 production. Just because something's the best selling vehicle doesn't mean they can't make enough of it.

2. Ford makes trucks other than the F150. The converted truck plants could have been producing trucks besides the F150, and in fact the article points out the Michigan plant produces SUVs.

3. Low gas prices won't last forever. Truck sales fall precipitously when gas prices rise, and it's smart for Ford to diversify its production capabilities.

--Andre

1) The OP stated the reason GM is failing is due to building gas guzzlers. Therefore, the fact the F150 is the best selling vehicle in the US, for 32 straight years, would indicate the property of gas guzzling does not indicate failure per se, in the sales department.

2) That has nothing to really do with my point.

3) I lack the power to predict gas prices. I wish I had this ability, but I don't. I'd certainly not toss away the best selling vehicle in US history, at this point, merely because it is a gas guzzler.

Of course adapting to current market conditions is smart, as well as diversifying your product line. Or is it (product line that is)? Part of GMs problem is a confusing product line, that often leads to market cannibalization for them. It's pretty complex stuff, IMO, and tossing out there the "average consumer" does not want a gas guzzler is just specious, as 32 years of sales data shows us.

 

[GQgeek]

Man wtf is with the 2 different versions of the focus? The european one looks pretty nice but the american one is ugly as sin.

 

[HomerJ]

April 2008 GM sold 119,466 cars April 2008 GM sold 136,592 light trucks April 2009 GM sold 71,085 cars (40.5% decrease) April 2009 GM sold 100,173 light trucks (26.7% decrease) YTD figures show the same trend. The way I look at it, on one hand, GM light trucks did alright. People still want trucks/SUVs, best selling F150 and all that. On the other hand, Honda car sales declined 18.2% from April to April. GM needs to offer better cars, nobody wants to buy Aveos and Impalas. Hyundai car sales only dropped 4.7% so they want value. The upcoming Chevy Cruze needs to be a good car for GM. It seems like the American consumer, by nature, wants the biggest vehicle unless prices at the pump apply too much financial pressure. Fickle bunch and stupid too judging by the people that sold their trucks at a loss at $4/gallon, got back into shiny new trucks at $1.30/gallon, and now thinking wtf as gas prices are creeping up again..

 

[DMcG]

Originally Posted by stormyseas

Why is this so hard for GM to understand that gas guzzling cars are not what the average consumer is looking for? Ford is smart by adapting to these times
check out this artilce:

http://www.dailytech.com/Ford+Invest...ticle15075.htm

What makes you think that GM doesn't understand that their cars shouldn't be gas guzzlers? They make a number of cars that are very competitive in terms of fuel consumption.

 

[Piobaire]

Originally Posted by HomerJ

April 2008 GM sold 119,466 cars
April 2008 GM sold 136,592 light trucks

April 2009 GM sold 71,085 cars (40.5% decrease)
April 2009 GM sold 100,173 light trucks (26.7% decrease)
YTD figures show the same trend.

The way I look at it, on one hand, GM light trucks did alright. People still want trucks/SUVs, best selling F150 and all that.

On the other hand, Honda car sales declined 18.2% from April to April. GM needs to offer better cars, nobody wants to buy Aveos and Impalas. Hyundai car sales only dropped 4.7% so they want value. The upcoming Chevy Cruze needs to be a good car for GM.

It seems like the American consumer, by nature, wants the biggest vehicle unless prices at the pump apply too much financial pressure. Fickle bunch and stupid too judging by the people that sold their trucks at a loss at $4/gallon, got back into shiny new trucks at $1.30/gallon, and now thinking wtf as gas prices are creeping up again..

Very good post. And I think the Hyundai sales really shows part of the problem. GM and Ford can't build a small car, cheap enough, to compete with what other makers are bringing to market. I think that has more to do with legacy costs, etc., at GM and Ford than anything else. And yeah, they tend to build fugly small cars.

 

[unjung]

Nobody is going to buy a car called the Cruze.

 

[Asterix]

Originally Posted by HomerJ

It seems like the American consumer, by nature, wants the biggest vehicle unless prices at the pump apply too much financial pressure. Fickle bunch and stupid too judging by the people that sold their trucks at a loss at $4/gallon, got back into shiny new trucks at $1.30/gallon, and now thinking wtf as gas prices are creeping up again..

The statement above summarily sums up the average American consumer!

 

[FidelCashflow]

Originally Posted by Piobaire

I'm sorry, but you could not be more wrong. What's the best selling Ford (and also best selling vehicle) of 2008? http://news.pickuptrucks.com/2009/01...-series-f.html
I'm going to go out on a limb and guess that most F150's are purchased by businesses, not individuals. I think if we could see what vehicles individuals are purchasing for personal use, cars would win hands down. Comparing vehicles sold for commercial purposes and for personal usage is like comparing apples and oranges.

 

[Piobaire]

Originally Posted by FidelCashflow

I'm going to go out on a limb and guess that most F150's are purchased by businesses, not individuals. I think if we could see what vehicles individuals are purchasing for personal use, cars would win hands down.

Comparing vehicles sold for commercial purposes and for personal usage is like comparing apples and oranges.

That's a pretty fragile limb to go out on. Data please. And FYI, fleet sales of the Taurus are what made it the #1 selling car many years. Cars get fleeted also.

 

[crazyquik]

Originally Posted by Piobaire

Very good post. And I think the Hyundai sales really shows part of the problem. GM and Ford can't build a small car, cheap enough, to compete with what other makers are bringing to market. I think that has more to do with legacy costs, etc., at GM and Ford than anything else.

A major driver of this is the UAW and their support of the two-fleet rule, which, by default, only really applies to the Big 3. Only in the last few years, with the increase of Toyota and Honda factories in the US, has it began to sting them, and sort of in the reverse way.

 

[Piobaire]

Originally Posted by crazyquik

A major driver of this is the UAW and their support of the two-fleet rule, which, by default, only really applies to the Big 3. Only in the last few years, with the increase of Toyota and Honda factories in the US, has it began to sting them, and sort of in the reverse way.

Yup. I've noticed mucho Camrys replacing the Taurus, as the mid sized sedan of choice for fleet buys these days.