Filed under: Car Buying, Plants/Manufacturing, Chrysler, LLC., Ford, GM
Carmakers reducing options, saving money
If you're in the market for a Focus sedan, the question is, exactly what kind of Focus will you buy? According to Ford's option sheets, there are 100,000 different combinations you can create. Eighty percent of Focus sedan sales, however, are comprises of just 4,000 of those combos. This glut of choice has increasingly become an issue that translates into lost money, unhappy customers and overwhelmed dealers for the Big Three, and now they're going to trim the options tree.
Ford's new marketing chief Jim Farley has said, "Coming from Toyota, I can tell you that the opportunity is there to reduce the complexity of our line-up." Toyota cars are not known for an obscene wealth of choice, although Nissan has found itself with too many choices on the Maxima and Altima, and has cut them down recently. Meanwhile, the domestics are working to figure out how to rationalize the choices they offer -- and the money they spend on them -- with the need to give people want they want.
Ford is doing it by shrinking the number of "buildable combinations of the 2008 Focus by 99 percent." Chrysler has reduced its own complexity by a claimed 93-percent over the last two years by jettisoning options. And GM's global platform strategy aims to severely curtail the expense of developing and building a car. Said marketer John Tulloch, the manufacturers can win this fight "if the savings are used to improve remaining models and reduce sticker prices." We can only hope.
[Source: Yahoo]
Reader Comments (Page 1 of 2)
spots 6:44PM (3/31/2008)
In other words, if I want option "a", I'll be forced to buy options "b", "c" and "d" whether or not I want them. Wonderful.....
Just like the Peugeot I had years ago that, if I had wanted power windows (power door locks were standard), I had to also get cruise control, a sunroof, alloy rims and a whole bunch of other stuff I did not want...)
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SPG 7:45PM (3/31/2008)
That's exactly correct.
Wait for the automakers to tell us it's going to best for everyone.
Disgruntled Goat 10:36PM (3/31/2008)
Didn't Ford already announce they were reducing the number of option in order to help their customers? Yeeaaahhhhh, we're doing it all for you, yeeaaahhhhh...
Xcountryflyer 6:47PM (3/31/2008)
Honda, Mazda, Toyota and VW are pretty good at limiting option lists. They pretty much option by trim level and throw things in when you move up the pricing structure and leaving bigger ticket items like NAV or super luxury packages as optional. It totally makes sense from a model combination standpoint.
It is always confusing when the option list is 2 pages long and some packages are available or not available depending on area or what options you've already chosen. Very complicated.
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spots 7:52PM (3/31/2008)
It really is not that complex- you check the boxes for the stuff you want; don't check the boxes for stuff you don't want- then you check to see if it's all compatible. A 12 year old can figure it all out.
Seoultrain 9:12PM (3/31/2008)
Right, spots. Because configuring a car on a website is the same as walking into a dealer and finding exactly what you want. Good luck with that.
Dustin 6:53PM (3/31/2008)
As a consumer, choices make me unhappy.
...
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DKB_SATX 6:53PM (3/31/2008)
There are good and bad ways to do this. The good way is how Hyundai does it... lots of standard equipment that varies a bit by trim level, and a few options.
The bad way is how VW and Infiniti have done it, keeping popular items optional and requiring unrelated packages to get them.
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nardvark 7:01PM (3/31/2008)
A few years back, we were shopping for a small car, and were looking between a Corolla, a Civic, and a Focus. We ended up getting the Focus, largely because of the driving dynamics, but also because we could get EXACTLY the options we wanted, without anything else to inflate the price. We could get a moonroof, side airbags, cruise, tilt/telescoping wheel, ABS, and the color we wanted without having to pony up for a spoiler, alloy wheels, extra plastic cladding, or anything else non-functional.
Toyota was out because their "base price" didn't include the mandatory options package, the cheapest of which was over $700. The packages with some equipment that we wanted were over $1200. The Civic didn't offer a moonroof without going up to the highest trim ($$$$$$!).
I hope Ford doesn't overdo it and end up like Toyota.
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Kevin 7:08PM (3/31/2008)
I like it when automakers do this because I look for used cars with very specific features, like the sport handling package. It's easy to find what you want when it came standard with a trim level, since sellers know about that and it's usually written on the car (or otherwise obvious).
It's a lot harder when it's an "obscure" option that the seller probably has no idea about, and may not be visible on the outside of the car. So I vote for fewer options.
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jurm 7:17PM (3/31/2008)
I hate having to buy large option packages. I want a bare-bones car. I don't care about a stereo, because an aftermarket unit will be put in. Same with the wheels and tires. Heck, even the suspension will probably be upgraded. Electronic locks and windows would be nice. Same with air conditioning, but I don't want heated seats, electronic nannies, 2 dozen warning lights, "premium" anything, fancy embroidery, spoilers, mood lighting, sat nav, or any other of the dozens of costly and weighty options that detract from the essence of what an automobile should be. Just give me a couple displacement options, one with forced-induction, and a diesel option. And please, don't force me to use an automatic transmission.
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spots 7:52PM (3/31/2008)
Did you know you can't even buy a basic Chevy Silverado without an automatic tranny anymore? That's just wrong on so many levels.... I hate automatics and will not buy one in a new vehicle, period. Used? Yeah, I've bought automatics before, grudgingly, if the rest of the vehicle was "right".
D.S. 8:30PM (3/31/2008)
Honda is the model of simplicity when it comes to options... basically pick an LX or EX, Add Leather and/or a V6 if you want, then decide if you'll take the navi plunge... that's about it.
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spots 9:01PM (3/31/2008)
And you're probably SOL on a Honda if you want a sunroof but don't want leather seats or an automatic...
Rick 9:15AM (4/01/2008)
Ah, hmm, never heard of the EX I guess? The leather is only on the EX-L.
almost Dr. G.. 9:24PM (3/31/2008)
my suggestion to this is to let manufacturers have their way with dealers in terms of putting packages on the floor but let the picky consumer have their choice on the web and put their car together as they choose.
id like to think that those of us on this site have better knowledge on what we need in a car.
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ccweems 9:24PM (3/31/2008)
In Europe dealers keep very little stock and most order their car exactly like they want it. The increased cost is not in the manufacture but in the carry expense of having strangely equipped cars in inventory ordered by reneging customers or deranged dealers. I can understand limiting choices for dealer stock but for a "sold" order why doesn't Ford grasp a competitive edge by allowing a custom Focus? When you want to differentiate your product why not seize on your manufacturing flexibility? This approach probably has the least impact on inexpensive cars but could have a big impact on the luxury models. The luxury imports would have trouble responding the the cache of a custom Cadillac (Lincoln doesn't still make cars does it?).
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Buckus 9:28PM (3/31/2008)
This is good from a cost perspective, both for the manufacturer, the dealer, and to you. For the manufacturer, they can order larger quantities of pricier products like NAV systems and thus get a better discount. The dealers profit because they can make more sales since they're more likely to have the car you want, and you profit (if you choose to see it that way) by taking advantage of reduced pricing on option packages vs. individual pricing. Yeah, it can be kind of hard if you only want a specific feature and it's in a $2000 package, but that, methinks, is rather more the exception than the rule. Also, you don't have to drive around all day to different dealers looking for the Focus with color 4, and options A, B, D, F, Y, U, I, L, K, but not H, T, or R.
Custom-ordering a car is a way around this, but most dealers want you to buy what's on the lot and won't haggle much on a car ordered from the factory with specifically the options you want.
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Cornholio 9:36PM (3/31/2008)
10,000 option combinations on a Focus and I still can't buy a new one with a turbo, all-wheel-drive, and/or a performance suspension?
C'mon, Ford.
(And yes, this is the weekly "bash Ford 'cause they don't bring their Euro cars over here" post.)
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Joe 10:32PM (3/31/2008)
MINI does it the best, you can pick almost whatever you want on the car...however this makes it really expensive.
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