• Jul 30, 2008
Ford and Volkswagen have been traveling in different directions of late, with VW posting record earnings while Ford is losing cash by the billions. VW's momentum doesn't stop with cold, hard cash, either. The German automaker's first half year sales rose 7.2 to 3.09m. That gives team Fahrvergnugen a lead of 220,000 units in the first half of the year -- a very sizable margin. Part of the reason VW has been able to pass Ford is that the German automaker doesn't rely heavily on US sales, while the land of opportunity is Ford's largest market. VW also has a larger stake in the quickly expanding Chinese market, where Ford is still ramping up in the land of the Great Wall. Since the Blue Oval depends on the US for much of its sales, the second half of the year isn't looking much batter than the first half. Even with gas prices starting to retreat, analysts predict sales will continue to underwhelm for the duration of 2008.

[Source: Free Press]


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  • 31 Comments
      • 6 Years Ago
      If there's one thing that I want to own less than a Ford, it's a Volkswagen. Every single VW owner I've known in my life says that they would never own another one. Based on my experience they are unreliable, expensive to repair, and most of the dealerships suck donkey ballz.

        • 6 Years Ago
        I would've used a different metaphor, but despite my appreciation for Volkswagens, I'm afraid my experience concurs: every single VW and Audi owner I know has scared me away from buying one because they are unreliable, expensive to repair, and the dealerships make things even more costly, inconvenient and regrettable.

        While I'm spouting these heresies, let me add that I'm coming round to Ford's 'Bold Moves' style theme.
      Jan
      • 6 Years Ago
      I am not a bit surprised that Ford sales are down. I was a Ford fan for years. Then my Explorer went up in flames in my drive way due to a factory defect. The treatment I got from Ford was appalling. For example, after the fire I called the dealership from whom I purchased this auto and all the manager could say was " So why are you calling me?" And when I called the Ford headquarters they said they were sorry, but nothing was wrong with that model Ford. Six months later I got a recall on it. I will NEVER buy a Ford again
      • 6 Years Ago
      soon to be new world order
      1 Toyota
      2 VW
      3 Hyundai/Kia
      4 Honda

      GM RIP
      Ford RIP
      Chrysler RIP
        • 6 Years Ago
        i don't necessary agree with you, since ford and gm are doing their job to stay on the market. in a few years ford would be bring small cars to the market and gm introducing fuel efficient hybrids with the introduction of the bolt.
        • 6 Years Ago
        I think there will eventually be a "leveling off" for GM and Ford, but no fallout. They seem to be doing quite well overseas and that's where the market seams to be growing (as opposed to the dramatic shrinking in the U.S. lately) . The big three couldn't stay on top forever. This was meant to happen. But I still see GM and Ford sticking in the top 10 and doing quite well -- just in a more smaller market than in the past. Chrysler is another story...
        • 6 Years Ago
        Toyota, VW, Honda, and Hyundai will definitely run in the top ten but i don't see GM or Ford leaving the race DNF.

        GM is working on the Volt and all its variants. Ford has a slew of small cars coming onto the market in the next two years. Both are investing in India China and Russia where the big sales jumps are to be had.

        Chrysler... I wouldn't say "RIP" but they better get their sh!t togeher if they plan to stay viable.
        Mark
        • 6 Years Ago
        I recently saw the European Ford cars while in southern Germany. There are several models, very well built, excellent fuel economy. I think they would be strong competiton to the Toyota and Honda juggernauts. They look good, drive well, and sip gas. The cost of gas in Germany is over $8.00 per gallon! Don't think that it can't happen here. Ford would be wise to hurry up and get those cars into the American market.
        HotRodzNKustoms
        • 6 Years Ago
        Even if I subscribed to your theory Hyundai would be on top.
      • 6 Years Ago
      Having just switched from a Ford to a VW a few months ago, I am not surprised. Details are what did it for me. The VW has so many features and everything feels good to the touch. Fords, not so much.
        • 6 Years Ago
        VW sales would probably drop if they advertised that they company was started by Hitler. It's probably something they don't like to discuss.
      • 6 Years Ago
      They may be currently down in NA now mostly due to their cash cows turning into anchors, leaving them in a complete financial mess on top of not planning far enough ahead by having a good lineup of small cars mixed with crappy boring blandified american design talent (or should I say lack of talent). It was bound to happen sooner or later.

      Now Ford could very well be back on their way up again..that's IF they stick with their plan of bringing in the Euro cars, weather built here or across the pond. Also no more ugly stick beating treatments on current NA built vehicles as well as not tampering with the Euro designs. People in Europe, Asia, and Australia like them, making the sales of Euro Ford very popular for a reason.

      You have a good plan Ford now don't screw this up!! Most of all I want to see some action.
      • 6 Years Ago
      there also another detail to remember, since the acquisition of 25% of the shares of the Russian car maker AvtoVAZ (aka Lada), the Renault-Nissan group is ahead of Ford as well according to this French article from LeBlogAuto
      http://www.leblogauto.com/2007/12/lalliance-avec-avtovaz-propulse-renault-dans-le-gotha-international.html
        • 6 Years Ago
        Does that then include the 33.33% stake in Mazda that Ford has?
      • 6 Years Ago
      i knew this would happen. vw has markets everywhere and many of them are not able to buy gas thirsty trucks like in the USA(before gas prices), they can only afford small compact cars which vw has. I am not surprise that the switch from trucks to small cars people are currently doing, for the most part has put more hands on vw cars.
      HotRodzNKustoms
      • 6 Years Ago
      I do not see the absolute obsession with who sells more cars. I can sell a billion cars and not make any money, or I can sell one car and make $20k. At the end of the day it's profits, not sales volume, that rule the world something Porsche knows better than anyone.
        • 6 Years Ago
        @HotRodzNKustoms
        HodRodz: That's not necessarily the complete picture though - car manufacturers have have a good deal of fixed costs to overcome (eg rent, interest, salaries) in addition to their variable costs (eg materials, direct wages) so sales volume is important to adequately cover fixed costs.

        If I sold ten widgets at $500 each over a month, which cost me $200 to make, had a monthly rent of $1000 and employed secretary on a salary of $2000/month, I would make nothing. But if I sold eleven, I'd make $300. The $200 are variable parts and labour costs - the rest are fixed.
        • 6 Years Ago
        @HotRodzNKustoms
        This is very true. Mercedes is another very high margin (on the grand scale) automaker. The S-class carries over 22% margin. The winner for Mercedes is the CLK-Class, it costs much less than the C-class to produce, yet they sell it for almost $15k more. According to a friend in R&D, it carries 32% margin on it. Production cost of a CLK350 is about. But it takes a few years to see the black ink on their models, they spend billions and billions on R&D every year.
      • 6 Years Ago
      Only a moron would relate the auto industry to THE NEW WORLD order...(what a bozo)....the only order this guy deserves is in front of a firing squad...what an idiot....takes all kinds to run down america....only takes one moron to criticize it....go back into your rat hole you vermit...before somebody with brains gets you in his rifle sights...what a pickle!
      • 6 Years Ago
      This news hurts, especially on Henry Fords Birthday!
      • 6 Years Ago
      Ford has a good chance to come out of the recession better than when it when in. If they can compined its efforts together with Ford U.S.A,Ford Euro,Mazda, and Volvo together to make a program world wide Ford could reclaim to be the leader in the world of automotive sales again. Ford together with all of its partners are producing some of the finest automobiles on the market today and in the future.
      • 6 Years Ago
      Remember the laughing last month when VW said it could be number 1? It's very possible, if you don't think just NA market.
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