Ford Sales Slowest In 60 Years

[csv8]

Ford Sales Slowest In 60 Years

September 5, 2013, 10:35 am Kochie's Business Builders Yahoo!7



If we needed any further confirmation the Australian auto industry is in strife, here it is. Ford sold fewer Falcons in August than at any time since its 1960 launch.

Ford’s sales slump led a wider contraction in the locally manufactured market, where sales fell 13% compared to the same month last year.

Car makers blame the fall on the Government’s decision to scrap the fringe benefits tax treatment of company cars, however even with this considered, it is a significant contraction for an industry heavily reliant on government subsidies and wage freezes for viability.

The Australian Automobile Dealers Association says that almost two thirds of new car dealers have made staff redundant, or plan to, as a result of the tax changes.

However given sales of foreign cars actually rose 1.7% last month, the impact of the tax as touted by Australian dealers and manufacturers appears somewhat exaggerated.


The Coalition plans to reverse the FBT decision if it is elected at this week’s Federal election, and urged people to start buying new cars if it wins.

Despite Tony Abbott’s cost cutting including $500 million in car subsidies, he and Treasurer Joe Hockey pledged to support local manufacturers in an open letter to car makers yesterday.

“We encourage all stakeholders, including employers and employees engaged in salary sacrifice programs, to urgently and immediately return to normal trading activity in order to repair the damage done [by FBT changes]”

However whether this reversal of policy is enough to arrest Ford’s slump is doubtful.

The trouble with the local industry, and Ford in particular, is the reluctance to change their product offerings to cater for the small, cheaper cars that have become so popular in recent years.

There were just 573 of Ford’s fuel heavy Falcon sold last month, a 58% fall that forced the local factory to halt production for a period.

Understandably, the company plans to cease manufacturing in Australia altogether.
http://au.smallbusiness.yahoo.com/ne...t-in-60-years/

[Sorted]

We all already know this - Ford Haters coming out from everywhere

WTF do they really need to add this rubbish
There were just 573 of Ford’s fuel heavy Falcon sold last month

[kaniSS]

Car makers blame the fall on the Government’s decision to scrap the fringe benefits tax treatment of company cars

This tell me that they have clue as to the reason why. If you want your sales to pick up Ford. Teach your dealers customer service skills.

[ZGM86]

Originally Posted by Sorted

WTF do they really need to add this rubbish
There were just 573 of Ford’s fuel heavy Falcon sold last month

That sort of tripe could only be written by someone who has no idea about the Falcon. Is the Ecoboost fuel heavy? No. Is the EcoLPI fuel heavy? No. Is the petrol 6 fuel heavy compared to most SUVs that are so popular right now. Not really. Is the current Falcon 6 one of the most fuel efficient Falcons in the history of the model? You betcha! That's a little fact that these idiots overlook.

The fuel use (or myth of fuel use) isn't the main reason the Falcon isn't selling anymore. It's more complicated than that. It's the combination of large sedans being out of fashion, the over-abundance of choice in the current Australian new car market, the lack of tariff protection on Australian manufactured vehicles, and the lack of support from Ford US. The myth that they're heavy on fuel plays a small part, but certain people have always thought it. If the only reason new car buyers are shying away from the Falcon is fuel use, then surely Ecoboost sales would be through the roof.

Kochie needs to get his head out of his backside and stick to commenting on what he knows about.

[monte.b]

Originally Posted by ZGM86

That sort of tripe could only be written by someone who has no idea about the Falcon. Is the Ecoboost fuel heavy? No. Is the EcoLPI fuel heavy? No. Is the petrol 6 fuel heavy compared to most SUVs that are so popular right now. Not really. Is the current Falcon 6 one of the most fuel efficient Falcons in the history of the model? You betcha! That's a little fact that these idiots overlook.

The fuel use (or myth of fuel use) isn't the main reason the Falcon isn't selling anymore. It's more complicated than that. It's the combination of large sedans being out of fashion, the over-abundance of choice in the current Australian new car market, the lack of tariff protection on Australian manufactured vehicles, and the lack of support from Ford US. The myth that they're heavy on fuel plays a small part, but certain people have always thought it. If the only reason new car buyers are shying away from the Falcon is fuel use, then surely Ecoboost sales would be through the roof.

Kochie needs to get his head out of his backside and stick to commenting on what he knows about.

That would be one of the best posts ive ever read on this forum ,talk about fuel usage ,ill give you an example ,I had to go down to Brisbane yesterday to pick up the love of my life ,who had a heart attack and was flown down to Brisbane on wed ,anyway i filled the old ute up in Maryborough ,traveled down to Brisbane and returned home and i still had 170klm left in the tank ,certinly didnt spare the horses getting down there either .The old ute rides lovely and plenty of space inside and the fuel consumption is just fine i reckon ,why would anybody want a bloody squissy little front wheel drive pile of rubbish is beyond me .My son has 3 children ,2 are in seats ,try getting that in one of those little things ,its just false economy really

[blackf6]

I think the problem is not car manufacturers but the young children out of school buying all the small imports with all the gagets. They need a slap up the side of the head by there parents and to be belittled by their mates for their questionable choices in cars.

[NX74205]

Originally Posted by teak81

I think the problem is not car manufacturers but the young children out of school buying all the small imports with all the gagets. They need a slap up the side of the head by there parents and to be belittled by their mates for their questionable choices in cars.

So customers should buy whatever the manufacturer dishes up, instead of manufacturers having a responsbility to build what customers want?

[Spammy]

Originally Posted by teak81

I think the problem is not car manufacturers but the young children out of school buying all the small imports with all the gagets. They need a slap up the side of the head by there parents and to be belittled by their mates for their questionable choices in cars.

Is this a real post or sarcasm at its best??

[Blue_Uterus]

Hey everybody, I'm brand new but have been watching the forums for a while now. I don't know whether I'm right in saying this but I personally think it would have been beneficial for ford to offer either a smaller sized rear wheel drive sedan, or possibly even produce a turbodiesel falcon using the technology they used on the territory. Advertising for the Ecoboost was insufficient I would think. Thoughts?

[Joe5619]

Did we really need another topic??

[Road_Warrior]

Oh look another Falcon/Ford bashing thread from the usual suspects. TL;DR

[Wretched]

Really it is only Falcon and Territory with the slump, the rest of the range have been doing well. Ranger, Focus, Fiesta all pretty steady. The article is misleading.

[csv8]

So we are only to post positive news?? I am not Bashing Ford, just posting news but that's a crime?????

[Wretched]

Originally Posted by csv8

So we are only to post positive news?? I am not Bashing Ford, just posting news but that's a crime?????

only for those that can't see the forest for the trees.

[Nikked]

Originally Posted by csv8

So we are only to post positive news?? I am not Bashing Ford, just posting news but that's a crime?????

Well, its not really news? Its just slow news...


hur dur...

[geehaa]

Originally Posted by csv8

So we are only to post positive news?? I am not Bashing Ford, just posting news but that's a crime?????

No, multiple exclamation or question marks is the crime

[jamies]

Ha ha here we go again, falcons finishing but there is a large range of other cars in The ford range.... This topics become boring.

[GASWAGON]

Maybe if they advertised the EcoLPi properly they would sell some more coons..... I honestly don't know why they bothered with it...They never gave it even five minutes on t.v.....What a waste of great technology and hard work with the patent problems they had with it....And they bloody charge 5k extra for an EcoLPi too!

[GASWAGON]

As someone already said in another thread, come Monday if Abbott wins there should be plenty of dealers phones ringing because of the FBT being re instated....Lets hope so the industry is dependant on it.

[GQ_Smooth]

Originally Posted by EF_6

As someone already said in another thread, come Monday if Abbott wins there should be plenty of dealers phones ringing because of the FBT being re instated....Lets hope so the industry is dependant on it.

What happens if there is bugger all change 5% after the FBT changes are scrapped. Will we look for something else to blame for slow car sales?

[ILLaViTaR]

The FBT should've only applied to Australian manufactured vehicles, otherwise it's given the MAJORITY the reach they needed to afford their desired euro import over the "crappy" cheaper local manufactured car they would've originally settled for. Effectively causing the opposite of what that cretin said in his article.

[damo76]

Well theres a simple fix and thats to stop buying imported crap.

[hodge_williams]

how about ford falcon sales are down because people are awaiting the last model to release prior to buying them. I for one wouldnt buy one now when a new model, update if it is, is around the corner.

[Syndrome]

Does this news really surprise anybody?

[Bossxr8]

Can't wait to see one of these "record sales low for Falcon" articles every month for the next 3 years.

[Rodge]

Yesterday I made an enquiry with my GT-P selling dealer regasrding a possible update for my MK 1 SC GT-P to a new Mk2 SC GT-P in Kinetic blue.

I made it clear I expected a really special deal given the aging platform of the FG2, the release of the VF with its vastly more updated technology and suggested that effectivly FG2 should be in run-out mode. This is especially so when you compare its outdated technology with those of say the VF GTS and the Chrysler SRT8.
Run-out mode in the car industry often translates to 25-30% discounts off normal retail price. This is common-place in the motor vehicle industry and I made this clear as well.

The response came back, we are not in a position to give you special run-out pricing and there's no more margin in the car than there was with your last one. This is most surprising seeing as I was an early adopter and bought one of the first SC GT-P's in N.Z nearly 2 1/2 years ago.

In my opinion Ford N.Z. present pricing for a new SC GT-P in N.Z. at circa $97,000 incl on-roads simply doesn't cut the mustard compared to its opposition. So unless they do special deals their sales will continue to decline..won't they !!

I am left to ponder the following possible explanations for their lack of competitive pricing with this aging product offer :-

Which of these applies - Multi-choice, you tell me.
a) Ford America wants to wind-up production as soon as possible to minimise their losses so has instructed Ford not to offer special pricing on FG2 Falcon product
b) Ford Aust and / or Ford N.Z. don't care that their product may no longer be an attractive proposition at its retail price point.
c) Ford Aust and or Ford N.Z are so arrogant to think loyal Ford / FPV customers won't consider changing to a compeitior product before the timing of closure is confirmed
d) They are asleep at the wheel and have no idea and couldn't organise a booze-up in a brewery between the lot of them
e) All of the above.

I think E, all of the above.

And Ford Aust / Ford N.Z. wonder why their Falcon / Territory sales are going down the toilet, go and have a look at the massive technology advantage in the VF and Chrysler SRT8 and then come back and re-price your vehicles allready for goodness sake

Ford make it incredibly tough to remain being a loyal supporter. How much of the present situation is self-inflicted pain on Ford's part ?

[DanielXR8]

Originally Posted by Rodge

Yesterday I made an enquiry with my GT-P selling dealer regasrding a possible update for my MK 1 SC GT-P to a new Mk2 SC GT-P in Kinetic blue.


The response came back, we are not in a position to give you special run-out pricing.

Which of these applies - Multi-choice, you tell me.
a) Ford America wants to wind-up production as soon as possible to minimise their losses so has instructed Ford not to offer special pricing on FG2 Falcon product

e) All of the above.

I think E, all of the above.

How about Ford NZ imported a batch of FPV stock months ago that is just sitting around as no one is interested in it. Ford Australia won't give any cash back on the cars or any other kind of incentive, so Ford New Zealand has nothing to offer the dealers and the dealers are stuck with the cars which they need to sell as close to full price as they can.

You asked for a massive price drop, which could only be done if the dealer principal took a bath. He declined.

Said dealer hangs on to stock and hopes someone will think the GT-P they have is collectable and will make a better offer. If come 2014 these cars are still around, the dealers probably will take a big hit to move them. You get your car cheap and dealer principal wonders after the Falcon experience if its time to:

a) Get another franchise from another more popular brand.
b) Give up on Ford altogether, irrespective of what happens with a.

[Rodge]

Originally Posted by DanielXR8

How about Ford NZ imported a batch of FPV stock months ago that is just sitting around as no one is interested in it. Ford Australia won't give any cash back on the cars or any other kind of incentive, so Ford New Zealand has nothing to offer the dealers and the dealers are stuck with the cars which they need to sell as close to full price as they can.

You asked for a massive price drop, which could only be done if the dealer principal took a bath. He declined.

Said dealer hangs on to stock and hopes someone will think the GT-P they have is collectable and will make a better offer. If come 2014 these cars are still around, the dealers probably will take a big hit to move them. You get your car cheap and dealer principal wonders after the Falcon experience if its time to:

a) Get another franchise from another more popular brand.
b) Give up on Ford altogether, irrespective of what happens with a.

There are a few GT-P's sitting around on the N.Z. market and dealers are asking retail or close to it, which here is circa $97,000 on the road.
On one hand you have new parallel imported Jaguar XFR's which can be had for within 10% of that figure and then there's the full kit Chrysler SRT8 as demo's which can be had for $70,000 and the newer and much fresher VF product to contend with as well.

Regardless of who's to blame aging FPV product doesn't make a compelling case for itself at the price point where Ford dealers are being asked to try to sell it in New Zealand. OTOH if you could buy a new MK2 GT-P for $80,000 drive away I think they'd be selling...

That's where they need to be to shift product in N.Z. in my opinion, and about $5-6,000 less drive-away for a GT. Do they want to sell stock here or not...

Plenty of other manufacturers discount aging product lines by 20%, often considerably more...this is not rocket science and is a well proven stratagy that's been used sucessfully in the motor vehicle industry for many decades yet Ford have a product that is already an orphan and known to be finishing soon and yet refuse to follow conventional norms...go figure.

[csv8]

Rodge, you be accused of Ford Bashing, like I do!!!! The truth hurts...

[Rodge]

Originally Posted by csv8

Rodge, you be accused of Ford Bashing, like I do!!!! The truth hurts...

Yeap I know I run the risk of being accussed of Ford bashing but I have a passion for the brand so it really gets under my skin that they don't follow conventional norms in the motor vehicle industry and then they wonder why customers don't want to bother engaging with them anymore...

If you have an old aging product offering that's well short on technology compared to its fresher competitors you start serious discounting to maintain interest and sales volume...what part of this well proven stratagy in the motor vehicle industry is so hard for Ford to understand ?

Surely this is better than paying people to sit around twiddling their thumbs...