Ford counting on the "B" word to score conquest sales
Is that 'B' as in bankruptcy or 'B' as in bailout? Probably 'B' as in both. Regardless of the buzzword you choose to slap on the respective situations General Motors and Chrysler find themselves in, it's not good, and Ford realizes this fact just as clearly as the rest of us. In response, the Blue Oval has embarked on a new plan to pick up as much market share as possible.
In an internal memo sent to Ford dealers in New York, the automaker laid out a new incentive that would pay current owners of Dodge, Chrysler or Jeep vehicles an extra $1,000 – in addition to whatever Customer Cash, Bonus Cash and 0% APR is already available – to trade in their current rides for a new SUV, pickup or crossover from Ford.
As pointed out by Detroit News columnist Daniel Howes, this tactic is a bit of a slippery slope for Ford. Although the Dearborn-based automaker has yet to seek out or accept any financial assistance from the government, a bankruptcy at either General Motors or Chrysler could put a major dent in Ford's own perilous financial footing. Still, Ford will take all the sales it can get.
[Source: Detroit News]
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Reader Comments (Page 1 of 3)
Alex 11:12AM (4/17/2009)
Why would Ford limit this deal to buyer os trucks, SUVs and crossovers? Why no love for the sedan?
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Luis 11:16AM (4/17/2009)
Because profits are fatter.
Rob 11:18AM (4/17/2009)
I was wondering the same thing. SUVs and trucks are freakin' lame. Most people don't need them, and it was that whole mess that got GM and Chrysler into trouble in the first place.
Sean 11:48AM (4/17/2009)
They got us in this mess? No. Idiot consumers and idiot lenders got us in this mess. A $40,000 family car costs the same amount as a $40,000 SUV.
If someone wants to buy an SUV or 4-door truck to go back and forth to work they'll do it whether or not there are extra incentives.
The problem is people buying things they can't afford, the problem isn't WHAT they are buying.
Noah 1:24PM (4/17/2009)
Sean... what got Chrysler, Ford, and GM into trouble is that they banked on SUV's having strong sales for eternity. They were trying to tap what they believed was an insatiable demand. Also, the Big 3 are / were being subsidized by the government to produce gas-guzzling vehicles. Go figure, they failed. It was poor planning and insight by both our government, and the Big 3.
Randy 2:34PM (4/17/2009)
Personally I think they should go for everything and not limit it to any one genre of car / truck / suv.
Let me add that Ford is NOT GM's or Chrysler's friend. They are all competitors! I say gobble up everything you can in any way they can! Even if it slings mud! Hell, they all do it in an indirect way!
I think the ad campaign should read!
Ford invites GM and Chrysler owners to the Ford Motor Company. As a welcome gift we're offering you an additional $1000 OFF any Ford, Lincoln or Mercury vehicle..... FORD - You Can Bank On It
©2009 ME (hey got to get props if it gets used lol)
I think it's the perfect blend of invite / dig / reality!
Perfe
nardvark 12:34PM (4/17/2009)
Probably because Ford's car sales are doing relatively OK, what they can't for the life of them move any Explorers.
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Iridium 11:21AM (4/17/2009)
That is the problem right now. In order to sell cars the domestic manufacturers need to throw insane incentives on the hood to move any vehicle. You can buy a Fusion almost anywhere with $6,000 off and 0% financing for 72 months. That is also eligble for the Ford makes you payments if you lose your job deal.
Ford will not be able to stay out of bankrupcy for long if it has to continue to give its cars away. It is also killing the residual value of any car you buy from a domestic manufacturer.
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epilonious 11:21AM (4/17/2009)
I don't think it will be that simple. Chrysler will definitely lose a lot of market share on their cars, but I think GM will be more a problem for Ford, because GM is I think turning out some of the highest quality stuff I've seen in a long time, nicer than Fords stuff, and it's all going on fire-sale.
Thus, people in the mood for an American car will probably see if they can get a deal on a Malibu/Cobalt/Equinox/Traverse and will only move on to a Fusion/Focus/Edge/Explorer if they can't get the Chevy dealers to budge.
I say this because my partner has been car shopping and this is exactly his plan. The Malibu is nicer than the 2010 Fusion (better gas mileage, better interior quality, more room, smoother, quieter, nicer speakers (although the ford definitely has the nicer head unit)) and he's gonna try for a 4-cyl LTZ for cheap with the 4-cyl fusion SEL as a backup.
It's actually kind of sad. GM is, I feel, cranking out nicer stuff than a lot of other manufacturers and slapping money on the hood. It's just that a lot of people have gotten burned by GM in the past and don't even feel like looking at them anymore and now they are in dire straights.
Either way, good luck to all of 'em.
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adam 11:37AM (4/17/2009)
um the Malibu doesn't have better mileage then the 2010 fusion?
as far a quality, yes gm has made an improvement but they are still behind Toyota, Honda, and Ford according to surveys conducted by jd power, etc.
regardless of how nice the cars are a lot of people will not touch a gm product right now simply because they aren't sure if they will be in business or not. its a self fulfilling prophesy
Aprime 11:37AM (4/17/2009)
"I don't think it will be that simple. Chrysler will definitely lose a lot of market share on their cars, but I think GM will be more a problem for Ford, because GM is I think turning out some of the highest quality stuff I've seen in a long time, nicer than Fords stuff, and it's all going on fire-sale."
Bailout.
Argument defeated.
"Thus, people in the mood for an American car will probably see if they can get a deal on a Malibu/Cobalt/Equinox/Traverse and will only move on to a Fusion/Focus/Edge/Explorer if they can't get the Chevy dealers to budge."
lol
"I say this because my partner has been car shopping and this is exactly his plan."
Scientific personal experience amirite
psu48187 12:16PM (4/17/2009)
I'm impressed that anyone finds the Malibu superior to that of the revamped Fusion. Fuel economy or not, the Malibu is full of compromise (especially when it comes to overall interior refinement).
why not the LS2LS7? 12:21PM (4/17/2009)
Every vehicle has compromises.
I haven't been in the new Fusion yet, but I like the new Malibu, I don't have any problem believing it could be superior to another car in its class.
Dave 12:58PM (4/17/2009)
Please pass the crack pipe.
The 2010 Fusion blows the doors off the Malipoo. The ugly radio headunit, no surround sound, no AWD, that horrid fake wood, "breaking a chicken leg off" turn signal stalks.....
The Cobalt is a cardboard box with 4 wheels attached to it. The Impala...well, you get the idea. Garbage.
epilonious 1:08PM (4/17/2009)
*shrug* The Fusion is cheaper than the Malibu. When test driving the two, it's not hard to find out why.
The "I don't like the interior that much on the Malibu" thing is rather subjective, and things like the "I don't like the way the turn signal stalk/radio buttons in the malibu feels" is scraping the /top/ of the complaint barrel. (Besides. the cheap door locking mechanism and buttons on the Fusion undermine any complaints of Malibu cheap tackiness ;)
I respectfully maintain my position that the Malibu is a better car. Not an "OMG, this thing blows the fusion out of the water!!11" better car, but more of a "I'd be a bit more comfortable taking myself and two friends on a 50 mile trip" car (and I live in Atlanta, where that happens frequently). To me, it's just a smoother, quieter car. Thus, if they were offering both for the same price, I'd opt for the Malibu. Other people might not, and that's their choice and I doubt I'd find any issue with it.
why not the LS2LS7? 1:50PM (4/17/2009)
Surround sound? Are you kidding me? You really think surround sound is a major feature for a car? You must have loved the Volvo S80.
epilonious 1:39PM (4/19/2009)
Also, Adam...
"um the Malibu doesn't have better mileage then the 2010 fusion?"
Check again: http://twitpic.com/3ls47
izorro 11:28AM (4/17/2009)
Well from their perspective I could see why they are doing it I mean some one needs to profit. Although Market share should be nabbed from foreign marks in order for it to be seen as a win.
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TomdeTomTom 12:08PM (4/17/2009)
Which is exactly the point since foreign brands are the new default for the average person, especially in New York where this memo started.
I wish Ford well, they've stepped up massively on their R and D lately.
why not the LS2LS7? 11:36AM (4/17/2009)
Ford has sought (but not yet received) financial assistance from the government.
http://www.autoblog.com/2009/02/20/total-bailout-bill-97-4-billion-with-a-b/2
Still, it doesn't look like Ford will declare bankruptcy, and GM and Chrysler very well might. That could be a powerful marketing tool, if Ford is crass enough to use it.
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